KUMARAPURAM SERVICE CO-OPERATIVE BANK LIMITED NO 2147,KARTHIKAPPALLY V. ITO, WARD 2, ALAPPUZHA

ITA 391/COCH/2025

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The case involves the Kumarapuram Service Co-op. Bank Ltd., a cooperative society engaged in accepting deposits and providing credit facilities to its members, which filed an appeal against the order of the CIT(A) confirming the CPC's adjustment disallowing a deduction claim under section 80P of the Income Tax Act. The society had filed its return belatedly under section 139(4) and sought to claim a deduction of Rs. 2,34,57,500 under section 80P, which was disallowed due to the late filing. The Tribunal's decision was based on the interpretation of sections 80AC and 139 of the Income Tax Act, emphasizing the necessity of adhering to the prescribed due dates for filing returns to qualify for deductions under section 80P.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711840 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: SABU
• Keywords: Condonation of delay
• Section: 119(2)(b)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI SONJOY SARMA, JM ITA No. 391/Coch/2025 Assessment Year: 2021-22 Kumarapuram Service Co-op. Bank Ltd. .......... Appellant Kumarapuram Village, Thamalakkal P.O. Haripad, Alappuzha 690549 [PAN: AAABK0740M] vs. The Income Tax Officer, Ward-2, Alappuzha .......... Respondent Appellant by: Shri Sabu, CA Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 05.06.2025 Date of Pronouncement: 22.07.2025 O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-9, Mumbai [CIT(A)] dated 28.03.2025 for Assessment Year (AY) 2021-22. 2. Brief facts of the case are that the appellant is a co-operative society registered under the Kerala State Co-operative Societies Act, 1969. It is engaged in the business of accepting deposits from members and providing credit facilities to members. The return of income for AY 2021-22 was filed on 31.03.2022 declaring Nil Printed from counselvise.com 2 ITA No. 391/Coch/2025 Kumarapuram Service Co-op. Bank Ltd. income after claiming deduction u/s. 80P of the Income Tax Act, 1961 (the Act) of Rs. 2,34,57,500/-. The said return of income was processed by CPC u/s. 143(1) of the Act vide intimation dated 12.12.2022 by making adjustment by disallowing the claim for deduction u/s. 80P on the ground that the return of income was not filed within the due date specified u/s. 139(1) of the Act, placing reliance on the decision of section 80AC of the Act. 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO. 4. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. 5. The learned counsel for the assessee submitted that the CIT(A) fell in gross error in not considering the application filed u/s. 119(2)(b) of the Act before the CBDT seeking condonation of delay in filing the appeal. It is further submitted that the appellant could not file the return of income within the prescribed period on account of factors which are beyond the control of the assessee. 6. On the other hand, the learned Sr. DR, after making reference to the provisions of section 80AC, submitted that no interference in the impugned order is called for. 7. We have heard the rival contentions and perused the material available on record. The issue in the present appeal relates to Printed from counselvise.com 3 ITA No. 391/Coch/2025 Kumarapuram Service Co-op. Bank Ltd. whether the CPC was justified in making prima facie adjustment by disallowing the claim for deduction u/s. 80P of the Act on the ground of belated filing of return of income. It is undisputed fact that the appellant filed the return of income u/s. 139(4) of the Act belatedly. No return of income was filed u/s. 139(1) of the Act. Provisions of section 80AC provides that in order to claim deduction u/s. 80P, return of income is required to be filed within the due date prescribed u/s. 139(1) of the Act. It is a condition precedent for claiming deduction u/s. 80P of the Act. Claiming deduction u/s. 80P without complying with the conditions laid down u/s. 80AC amounts to incorrect claim as defined in Explanation to section 143(1) of the Act. Accordingly, we do not find any illegality in the adjustment made by CPC while processing the return of income. 8. In the result, the appeal filed by the assessee stands dismissed. Order pronounced in the open court on 22nd July, 2025. Sd/- Sd/ (SONJOY SARMA) JUDICIAL MEMBER (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 22nd July, 2025 n.p. Printed from counselvise.com 4 ITA No. 391/Coch/2025 Kumarapuram Service Co-op. Bank Ltd. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin Printed from counselvise.com "