KEEZHKULAM PRIMARY AGRICULTURAL CO-OP CREDIT SOCIETY LIMITED NO 3938,KANYAKUMARI V. COMMISSIONER OF INCOME TAX, CHENNAI

ITA 884/CHNY/2025

AI Insights

The case involves Keezhkulam Primary Agricultural Co-operative Credit Society Ltd., which appealed against the order of the Learned Commissioner of Income Tax (Appeals) denying them a deduction under section 80P(2)(a)(i) of the Income Tax Act, 1961 for the Assessment Year 2021-22. The Society, primarily engaged in lending to its agriculturist members, filed its return of income belatedly due to delays in receiving a statutory audit. Although the Chief Commissioner of Income Tax condoned the delay, the Learned Commissioner of Income Tax (Appeals) still disallowed the deduction, leading to the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705234 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: G.REDDI PRAKASH
• Keywords: Condonation of delay; Set aside; Competent authority; Co-operative Credit Society

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0001यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0001ी एबी टी. वक , ाियक सद\u0011 एवं एवं एवं एवं \u0001ी जगदीश, लेखा सद क े सम\u0015 BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.884/Chny/2025 िनधा\u000eरणवष\u000e/Assessment Year: 2021-22 Keezhkulam Primary Agricultural Co- op. Credit Society Ltd., No.3938, Keezhkulam Poottetti, Poottetti Post, Vilavancode, Kanyakumari-629 157. v. The ACIT, CHE-W-(513)(91), Chennai. [PAN: AABAK 1581 C] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Mr.G. Reddi Prakash, CA \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Ms.Gouthami Manivasagam, JCIT सुनवाईक\u001aतारीख/Date of Hearing : 11.06.2025 घोषणाक\u001aतारीख /Date of Pronouncement : 04.07.2025 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee Co-operative Credit Society Ltd., against the order of the Learned Commissioner of Income Tax (Appeals)/Addl/JCIT(A), Faridabad, (hereinafter referred to as “the Ld.CIT(A)”), dated 27.01.2025 for the Assessment Year (hereinafter referred to as \"AY”) 2021-22. ITA No.884/Chny/2025 (AY 2021-22) Keezhkulam Primary Agricultural – Co-op. Credit Society Ltd. :: 2 :: 2. The main grievance of the assessee is against the action of the Ld.CIT(A) in not granting deduction u/s.80P(2)(a)(i) of the Income Tax Act, 1961 (hereinafter referred to as \"the Act”). 3. The brief facts brought to our notice are that the assessee is a Primary Agricultural Co-operative Credit Society and its Members are primarily agriculturists. Further it is noted that assessee is registered as a society under the Tamil Nadu Co-operative Societies Act, 1983; and its main source of income was from lending of loan to its members for purchase of seeds, fertilizers and other inputs for the farm. In the year under consideration, the assessee filed its return of income (RoI) after the due date specified u/s.139(1) of the Act. The due date in filing of return for AY 2021-22 was 15.03.2022, whereas the assessee has filed the return only on 13.10.2023, which according to the assessee was due to delay in receiving statutory audit from the State Audit Department, Tamil Nadu. For belated filing of RoI [i.e., not filing ITR within the due date prescribed u/s.139(1) of the Act], the assessee’s claim made in its ITR for deduction u/s.80P(2)(a)(i) of the Act was denied by the CPC by intimation u/s.143(1) of the Act dated 13.12.2024. 4. Aggrieved by the action of the CPC denying deduction u/s.80P(2)(a)(i) of the Act, the assessee preferred an appeal before the Ld.CIT(A) and simultaneously filed application for condonation of delay in ITA No.884/Chny/2025 (AY 2021-22) Keezhkulam Primary Agricultural – Co-op. Credit Society Ltd. :: 3 :: filing of RoI before the Chief Commissioner of Income Tax (CCIT, Madurai) who by order dated 23.02.2024 [for AY 2021-22] was pleased to condone the delay in filing of the return. Despite there being an order of the competent authority condoning the delay in filing of return within the time prescribed u/s.139(1) of the Act, the Ld.CIT(A) is found to have erred in disallowing the claim of the assessee. Therefore, we set aside the impugned order of the Ld.CIT(A) and restore the appeal back to his file with a direction to pass order in the light of condonation order passed by the CCIT, Madurai dated 23.02.2024 for AY 2021-22 after hearing the assessee. 5. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 04th day of July, 2025, in Chennai. Sd/- Sd/- (जगदीश) (JAGADISH) लेखा सद /ACCOUNTANT MEMBER (एबी टी. वक ) (ABY T. VARKEY) \u0001याियक सद\bय/JUDICIAL MEMBER चे ई/Chennai, !दनांक/Dated: 04th July, 2025. TLN आदेश क\u001a \u0017ितिलिप अ$ेिषत/Copy to: 1. अपीलाथ\u0010/Appellant 2. \u0011\u0012थ\u0010/Respondent 3. आयकरआयु\u0018/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u0011ितिनिध/DR 5. गाड फाईल/GF "