OTHUKKUNGAL SERVICE CO-OPERATIVE BANK LIMITED NO.F1039,MALAPPURAM V. ITO, WARD-1, MALAPPURAM

ITA 858/COCH/2024

AI Insights

The case involves the Othukkungal Service Co-op. Bank Ltd., a cooperative society, which appealed against the order of the National Faceless Appeal Centre (NFAC), Delhi, for the Assessment Year 2018-19. The dispute centered on the disallowance of a deduction claimed under section 80P of the Income Tax Act, 1961, due to the alleged late filing of the income tax return. The CPC had processed the return and disallowed the deduction, stating that the return was filed belatedly. The appellant argued that the return was filed within the extended due date provided by the CBDT. The tribunal agreed with the appellant, noting that the return was indeed filed on time and remitted the matter back to the CPC for rectification.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474702 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Keywords: Revised return
• Section: 143(1); 139(1); 80P

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM ITA No. 858/Coch/2024 Assessment Year: 2018-19 Othukkungal Service Co-op. Bank Ltd. .......... Appellant XI/38, Service Bank Building, Kuzhipuram Road, Othukungal, Malappuram 676528 [PAN: AAAAO1158J] vs. The Income Tax Officer, Ward -1 .......... Respondent Tharff Bazar, Opp. Town Hall, Tirur 676101 Appellant by: ------- None ------- Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 04.02.2025 Date of Pronouncement: 10.02.2025 O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 09.08.2024 for Assessment Year (AY) 2018-19. 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 a primary agricultural credit society. The original return of income for AY 2018-19 was filed on 28.02.2019. The same was revised on 31.03.2019. The original return was filed disclosing Nil income after claiming deduction u/s. 80P of the Income Tax Act, 1961 (the Act) of Rs. 2 ITA No. 858/Coch/2024 Othukkungal Service Co-op. Bank Ltd. 41,00,838/-. The CPC issued a defect notice u/s. 139(9) of the Act on 10.04.2019 notifying the defect in the original return of income. In response to the show cause notice it was stated that the defects were already rectified by filing the revised return of income on 31.03.2019. However, the CPC processed the return of income u/s. 143(1) vide intimation dated 20.06.2019 disallowing the claim for deduction u/s. 80P of the Act on the ground that the return of income was filed belatedly. 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 us in the present appeal. 5. When the appeal was called nobody appeared on behalf of the assessee despite due service of notice of hearing. Therefore, we proceeded to dispose of the appeal after hearing the learned Sr. DR. 6. It is submitted that there is no delay in filing the return of income as the CBDT vide order passed u/s. 119(2) n F.N. 22S/15/2019/ITA.11 dated 27.02.2019 had extended the date for filing the return of income for AY 2018-19 till 28.02.2019. Therefore, the original return of income was filed within the due date and the lower authorities were not justified in denying the claim for deduction. 7. On the other hand, the learned Sr. DR placing reliance of the orders of the lower authorities submitted that no interference is requires in this matter. 3 ITA No. 858/Coch/2024 Othukkungal Service Co-op. Bank Ltd. 8. From a reading of the intimation, the CPC has disallowed the claim solely on the ground that the return of income was not filed within the due date specified u/s. 139(1) of the Act. In this case, the return of income was filed on 28.02.2019 as extended by the CBDT vide notification (supra). When the original return was in time, the revised return of income was filed before the notification of the defect by the CPC. Therefore, it cannot be stated that the original return of income was non est in the eyes of law. In view of this, the CPC is not justified in rejecting the claim for deduction u/s. 80P of the Act. In the circumstances I remit the matter to the file of the CPC to rectify the intimation. 9. In the result, the appeal filed by the assessee stands allowed. 10. Order pronounced in the open court on 10th February, 2025. Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 10th February, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File Assistant Registrar ITAT, Cochin "