NARHARI MAHARAJ MAJOOR SAHAKARI SANSTHA LTD,JALGAON V. ITO, WARD 1(4), JALGAON, JALGAON

ITA 1458/PUN/2025

AI Insights

The case involves Narhari Maharaj Majoor Sahakari Sanstha Ltd., which appealed against the order of the CIT(A) National Faceless Appeal Centre, Delhi, confirming the disallowance of a deduction under section 80P of the Income Tax Act, 1961, due to a delay in filing the income tax return for the assessment year 2018-19. The Tribunal examined whether the disallowance was justified under the law as it stood prior to the amendment introduced by the Finance Act, 2021. The Tribunal referenced decisions in similar cases, noting that the legislative changes allowing such disallowances were prospective and did not apply to the assessment year in question.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708895 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2018-2019
• Other Referred Cases: Inder Singh Vs State of Madhya Pradesh, NRB Bearings Sevakanchi Patsanstha vs. ADIT, CPC, Finolex Industries Ltd. Employees Co-operative Credit Society Ltd. Vs ITO
• Laws Referred To: Income-Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEEPAK KUMAR
• Assessee Lawyers: VINAY KAWAIA
• Keywords: Condonation of delay; Set aside; Reasonable cause; Co-operative Credit Society

Judgement Text

" आयकर अपीलीय अधिकरण \"एस एम सी\" न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL \"SMC\" BENCH, PUNE BEFORE Dr. MANISH BORAD, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.1458/PUN/2025 धििाारण वर्ा / Assessment Year: 2018-2019 Narhari Maharaj Majoor Sahakari Sanstha Ltd., C/o Bhagyesh Hari Dhakane, 18, Pitashri, Gruhkul Colony, MIDC, Jalgaon-425001 Maharashtra PAN-AAAAN6252G Vs ITO, Ward 1(4), Jalgaon Appellant Respondent Assessee by : Shri Vinay Kawaia (Through Virtual) Revenue by : Shri Deepak Kumar Kedia, JCIT Date of hearing : 09.07.2025 Date of pronouncement : 16.07.2025 आदेश/ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : This appeal at the instance of assessee pertaining to Assessment Year 2018-19 is directed against the order passed by the Ld. CIT(A) National Faceless Appeal Centre, (NFAC) Delhi u/s 250 of the Income-Tax Act, 1961 dated 27.09.2024 which in turn is arising out of the Assessment Order passed u/s 143(1) dated 13.05.2019 of the Income Tax Act, 1961. A. Registry has informed that the present appeal is delayed by 182 days. Application for condonation of delay alongwith affidavit and the evidence about the medical treatment of Mr. 2 ITA No.1458/PUN/2025 Bhagyesh Hari Dhakne, Director of the assessee society is placed on record. After going through the application and also hearing the Ld. Departmental Representative (DR), I observe that reasonable cause gave rise to the said delay. The Hon’ble Apex Court in the case of Inder Singh Vs State of Madhya Pradesh judgement dated 21.03.2025 (2025 INSC 382) condoned the delay of 1537 days on observing that the delay was unintentional and less due to deliberate laches and was well explained. Hon’ble Court also held that in case where the merits are consistent, a more liberal approach may be adopted for the examination of the case on its merits. Having gone through the averments made in the affidavit and considering the ratio laid down by the High Court in the case of Inder Singh (Supra) , I am of the view that reasonable cause prevented the assessee in filing the appeal within the stipulated time and therefore of 182 days in filing of appeal is condoned and admit the appeal for adjudication. 2. Assessee has raised following grounds of appeal:- 1) Under the facts and circumstances of the case and in law the learned CIT(A). NFAC has erred in confirming the disallowance of deduction of Rs. 18.98.260/- made by CPC, Bengaluru u/s 80P due to delay in filing ITR for AY 2018-19. 2) The learned CIT(A),NFAC erred in not appreciating the fact that the appellant Co-operative society is an eligible person under the provisions of IT Act, 1961 to claim deduction under s. 80P on merit and the same should not be disallowed merely because of the fact that there is a delay in filing the return for therelevant assessment year under consideration. Hence no disallowance was warranted on the fact of the case. 3) The learned CIT(A) erred in confirming the disallowance of deduction u/s 80P made by CPC by erroneously treating the same as \"incorrect claim\" u/s 143(1)(a)(ii)r.w.s. 80AC(ii) of the Act. Reliance is placed on NRB Bearings Sevakanchi Patsanstha vs. ADIT, CPC [ITA No. 422/PUN/2024(Pune)]. 4) The appellant craves the permission to add, amend, modify, alter, revise, substitute, delete any or all grounds of appeal, if deemed necessary at the time of hearing of the appeal. 3 ITA No.1458/PUN/2025 3. At the outset Ld. Counsel for the assessee referring to the decision of this Tribunal in the case of NRB Bearings Sevakachi Patsanstha vs.ADIT, CPC (ITA No. 422/PUN/2024) dated 12.06.2024 (PUNE) and the other decision in the case of Finolex Industries Ltd. Employees Co-operative Credit Society Ltd. Vs ITO (ITA No. 76/PUN/2023 dated 03.04.2023) submitted that the Ld. CIT(A) erred in confirming the disallowance of deduction u/s 80P of Rs. 18,98,260/- made by CPC, Bangalore for delay in filing the I.T. return for A.Y. 2018- 19 without considering that such powers were given to CPC by making necessary amendment in section 143(1)(a)(v) from 01.04.2021 onwards. 4. On the other hand Departmental Representative (DR) vehemently argued supporting the orders of Ld. CIT(A). 5. I have heard rival contentions and perused the record placed before me. Admittedly the assessee society has filed the return of income on 06.12.2018 which is after the due date of filing the return u/s 139(1) i.e. 30.09.2018. As per section 80AC of the Act for claiming deduction u/s 80P of the Act assessee is required to furnish the return of income within the due date prescribed u/s 139(1). However the return of the assessee has been processed by CPC, u/s 143(1) of the Act. Now CPC has to process the return strictly as per section 143(1)(a) and in the said section upto 31.03.2021 there had been no specific provisions for making Prime Facie adjustments for disallowing deduction claimed u/s 80P of the Act. Therefore prior to 01.04.2021, CPC could not make Prime-Facie adjustments by disallowing deduction u/s 80P of the Act for delay in filing the return. This issue has been dealt by this Tribunal on number of occasions. In the written submissions, assessee has referred and relied on the decision 4 ITA No.1458/PUN/2025 of this tribunal in the case of NRB Bearings Sevakachi Patsanstha (Supra) and Finolex Industries Ltd. Employees Co- op Credit Society Ltd. (Supra), wherein it has been held that the legislature has introduced such disallowance provisions in section 143(1)(a)(v) dealing with deduction claim(s) provided in Chapter VIA of the Act by way of Finance Act, 2021 w.e.f 01.04.2021 with prospective effect and therefore prior to 01.04.2021 the disallowance u/s 80P of the Act cannot be made in the returns processed u/s 143(1)(a) of the Act. Respectfully following the same and taking a consistent view, I hereby hold that Ld. CIT(A) erred in affirming the action of the CPC. Finding of the Ld. CIT(A) is set aside and disallowance of deduction u/s 80P of the Act is hereby deleted. Grounds of appeal raised by the assessee allowed as per terms indicated above. 6. In the result, appeal of the assessee is allowed for as per terms indicated above. Order pronounced on this 16th day of July, 2025. Sd/- (MANISH BORAD) ACCOUNTANT MEMBER पुणे/ Pune; दििांक / Dated: 16th July, 2025. Neeta आिेश की प्रधिधलधप अग्रेधर्ि / Copy of the Order forwarded to: 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT concerned. 4. धवभागीय प्रधिधिधि, आयकर अपीलीय अधिकरण, \"SMC\" बेंच, पुणे / DR, ITAT, \"SMC\" Bench, Pune. 5 ITA No.1458/PUN/2025 5. गार्ा फाइल / Guard File. आिेशािुसार / BY ORDER, Senior Private Secretary आयकर अपीलीय अधिकरण, पुणे / ITAT, Pune. "