MADANPUR CO-OPERATIVE HOUSE BUILDING SOCIETY LIMITED,SAS NAGAR V. ITO WARD 6(1) , CHANDIGARH

ITA 1174/CHANDI/2024

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The case involves Madanpur Co-operative House Building Society Limited appealing against the denial of a deduction under section 80P(2)(d) for the Assessment Year 2019-20. The Income Tax Officer had rejected the deduction on the grounds that the return was filed after the due date, which was contested by the assessee. The Tribunal examined the statutory requirements under the Punjab State Co-operative Societies Act, 1961, and found that the assessee had indeed complied by getting a special audit done, thus entitling them to the extended due date for filing the return. The Tribunal's decision reversed the earlier ruling by the Commissioner of Income Tax (Appeals), which had denied the deduction due to non-compliance with audit requirements for the years 2018-19 and 2019-20.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 836213 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Appeal Filed On: 03-12-2024
• Laws Referred To: Income Tax Act, Punjab State Co-operative Societies Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: . RANJIT KAUR LD.
• Assessee Lawyers: AJAY JAIN LD
• Section: 154

Judgement Text

"1 1 IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH PHYSICAL HEARING BEFORE HON’BLE SHRI RAJPAL YADAV, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं. / ITA No.1174/CHANDI/2024 (िनधाŊरण वषŊ / Assessment Year: 2019-20) Madanpur Co-operative House Building Society Limited 116/1st Floor, Phase IV, SAS Nagar, Punjab - 160059 बनाम/ Vs. ITO Ward 6(1) Chandigarh Aaykar Bhawan, Mohali ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AACAM-4737-B (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Sh. Ajay Jain (CA) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Sh. Dr. Ranjit Kaur (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 10.02.2026 घोषणाकीतारीख /Date of Pronouncement : 10.02.2026 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2019- 20 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 04-10-2024 in the matter of a rectification intimation issued by CPC u/s 154 on 28-12-2020. Having heard rival submissions, the appeal is disposed-off as under. 2. The sole grievance of the assessee is denial of deduction u/s 80P(2)(d) for Rs.98.04 Lacs on the allegation that the due date for Printed from counselvise.com 2 2 filing of return of income was 31-08-2019 as against the contention of the assessee that due date in its case would be 31-10-2019. Since the return of income was filed on 31-10-2019 which is within due date, the deduction would be an allowable deduction to the assessee. The contention of the society stem from the fact that it being a co-operative society, is required to get its accounts audited by Inspector (Audit) of Registrar of Co-operative Societies u/s 48 of the Punjab State Co- operative Societies Act, 1961. However, Ld. CIT(A) rejected the claim on the ground that the assessee did not get the audit done for AYs 2018-19 and 2019-20. Since the statutory audit was not got done, there was no justification for the said claim by the assessee. 3. Undisputedly, the assessee is required to get statutory audit done by Inspector (Audit) of Registrar of Co-operative Societies u/s 48 of the Punjab State Co-operative Societies Act, 1961. The provisions of Sec.48(1-A) of Punjab State Co-operative Societies Act, 1961 provide that the accounts of co-operative societies shall be audited by an auditor or auditing firm as approved by the general body of the co- operative society out of panel of auditors. In fact, pending such statutory audit, the assessee has got done special audit by an independent auditor M/s Gautam Jain & Associates on 31-05-2019 which Is evident from copy of Audit Report as placed on record. The due date, in such a case, would be governed by Explanation-2(a)(ii) to Sec.139(1) which provide that in case of a person whose accounts are required to be audited under this act or under any other law for the time being in force, the due date would be 31st October. The return of Printed from counselvise.com 3 3 income has indeed been filed on 31-10-2019 which is well within due date. Therefore, the assessee would be eligible for impugned deduction u/s 80P(2)(d). We order so. The Ld. AO is directed to re- compute the income of the assessee. 4. The appeal stand allowed. Order pronounced on 10th February, 2026. -Sd- -Sd- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 10-02-2026 आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH Printed from counselvise.com "