PORKULAM SERVICE CO-OPERATIVE BANK LTD,PAZHANJI, THRISSUR V. INCOME TAX OFFICER, W-1 & TPS, GURUVAYOOR, GURUVAYOOR

ITA 202/COCH/2025

AI Insights

The case involves the Porkulam Service Co-op. Bank Ltd., a cooperative society engaged in accepting deposits and providing credit facilities, which filed an appeal against the order of the Commissioner of Income Tax (Appeals)-1, Nashik. The appeal was concerning the disallowance of a deduction claimed under section 80P of the Income Tax Act, 1961, for the Assessment Year 2023-24. The CPC had initially disallowed the deduction citing the belated filing of the income tax return, which was processed under section 143(1) of the Act. The Tribunal's decision was based on the interpretation of sections 80P and 80AC of the Act, emphasizing the necessity of timely filing of returns to qualify for certain deductions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711823 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Assessment Year: 2023-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: VIPIN K.K.
• Keywords: Condonation of delay

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI SONJOY SARMA, JM ITA No. 202/Coch/2025 Assessment Year: 2023-24 Porkulam Service Co-op. Bank Ltd. .......... Appellant VIII/109, Pazhanji, Thalappilly, Thrissur 680542 [PAN: AAAAP4486A] vs. The Income Tax Officer, WD-1 & TPS, Guruvayur......... Respondent Appellant by: Shri Vipin K.K., CA Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 12.06.2025 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)-1, Nashik [CIT(A)] dated 28.01.2025 for Assessment Year (AY) 2023-24. 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. It is classified as primary agricultural credit co-operative society. The return of Printed from counselvise.com 2 ITA No. 202/Coch/2025 Porkulam Service Co-op. Bank Ltd. income for AY 2023-24 was filed on 11.11.2023 disclosing Nil income after claiming deduction u/s. 80P of the Act. The said return of income was processed by the CPC u/s. 143(1) of the Income Tax Act, 1961 (the Act) vide intimation dated 19.02.2024 making prima facie adjustment by disallowing the claim for deduction u/s. 80P on the ground that return of income was filed belatedly placing reliance on the provisions of section 80AC of the Act. 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed prima facie adjustment made by the CPC. 4. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. 5. The learned counsel for the assessee submitted that in terms of the CBDT Circular No. 13/2023 dated 26th July, 2023 the appellant had filed an application seeking condonation of delay which is pending for disposal. Therefore, the CPC ought not have made prima facie adjustment. 6. On the other hand, the learned Sr. DR submits that in view of the undisputed fact that the return of income was not filed within the due date specified u/s. 13(1) of the Act, the CPC was justified in making adjustment by disallowing claim for deduction u/s. 80P of the Act. Printed from counselvise.com 3 ITA No. 202/Coch/2025 Porkulam Service Co-op. Bank Ltd. 7. The issue in the present appeal relates to 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. 202/Coch/2025 Porkulam 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 "