RAJ COOP HOUSING SOCIETY LIMITED,MUMBAI V. MUMBAI ITO 22.3.1, PIRMAL CHAMBERS

ITA 508/MUM/2025

AI Insights

The case involves Raj Coop Housing Society, a cooperative society registered under the Gujarat Societies Act, which appealed against the order of the CIT(A)/NFAC for the Assessment Year 2023-24. The primary issue was the denial of deduction under section 80P of the Income Tax Act, amounting to Rs. 4,44,233, due to the revised return being filed after the prescribed deadline. The Central Processing Centre (CPC) initially processed the return without the deduction, which was upheld by the CIT(A). However, the Tribunal noted that the delay in filing the revised return had been condoned by the Principal Commissioner of Income Tax-20 (PCIT), Mumbai, based on the recommendation of the AO. Consequently, the Tribunal admitted the revised claim under section 80P and remanded the matter back to the AO for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470682 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2023-2024
• Other Referred Cases: Aliudepur Seva Sahakari Mandli Ltd Vs ADIT, Goetz (India) Limited Vs CIT, CIT Vs. Prithivi Brokers & Share Holders (P) Ltd, CIT Vs. Mitesh Impex
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIHAR RANJAN SAMAL
• Assessee Lawyers: PURRAM TEJWANI
• Keywords: Condonation of delay; Additional evidence; Revised return
• Section: 139(1); 80P; 139(4)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH MUMBAI, ‘SMC’ BENCH, BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI GIRISH AGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 508/Mum/2025 (AY 2023-24) (Physical hearing) Raj Coop Housing Society, CTS Raj Palace 11th Road, Khar West, Mumbai-400052 PAN : AAAAR 6493 H] बनाम Vs ITO, Ward 30(1)(5) Mumbai अपीलार्थी/Appellant प्रत्यर्थी /Respondent ननर्ाारिती की ओि से /Assessee by Sh Purram Tejwani, AR िाजस्व की ओि से /Revenue by Sh. Nihar Ranjan Samal Sr DR Date of filing appeal 24.01.2025 सुनवाई की तािीख/Date of hearing 17.03.2025 उद ्घोषणा की तािीख/Date of pronouncement 17.03.2025 Order under section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of ld. CIT(A)/ NFAC (in short, the ld. CIT(A)) dated 25.11.2025 for the Assessment Year 2023-24. Though, the assessee has raised multiple grounds of appeal, however, the substantial grounds of appeal relate to deduction under section 80P of Income Tax Act (Act) of Rs. 4,44,233/-. 2. Rival submissions of both the parties have been heard and record perused. The learned Authorised Representative (ld. AR) of the assessee submits that the assessee is a cooperative society registered Gujarat Societies Act. The assessee filed its return of income for AY 2023-24 on 25.10.2023 declaring total income of Rs. 4,44,233/-. The assessee filed its revised return of income under section 139(4) and claimed deduction under section 80P, however, it was filed after the ITA No.508/Mum/2025 (AY 2023-24) Raj Coop Housing Society 2 deadline prescribed in the Act. The Central Processing Centre (CPC) processed the return of income vide intimation dated 02.02.2024 and not allowed deduction under section 80P. Aggrieved the action of CPC, the assessee filed appeal before CIT(A). The assessee in its statement of facts prayed for condonation of delay in filing revised return of income. The ld CIT(A) dismissed the appeal of assessee by holding that as per provision of section 80AC, for claiming such deduction, the assessee was required to file return of income within due date specified under section 139(1). The ld CIT(A) has not followed the decision of Rajkot Bench in Aliudepur Seva Sahakari Mandli Ltd Vs ADIT in ITA No. 269/Rjt/2022 dated 24.02.2023. The ld AR of the assessee submits that delay in filing revised return of income under section 139(4) is also allowed by ld. Principal Commissioner of Income Tax-20 (PCIT), Mumbai. The delay was condoned on the basis of report of Assessing Officer (AO). The ld CIT(A) has disregarded the order of ld PCIT, therefore, the order passed by ld CIT(A) may be quashed and appeal of assessee be allowed. 3. On the other hand, the learned Senior Departmental Representative (ld. Sr. DR) for the Revenue submits that admittedly the revised return of income is filed belatedly and the assessee is not eligible for deduction under section 80P, if return of income is not filed within the time prescribed under the Act. Even, condonation of delay in filing revised return of income is not helpful to the assessee. The assessee is eligible for any deduction, if it is not in accordance with the provisions of the Act. The order of ld CIT(A) is in accidence with law. The appeal of the assessee is liable to be dismissed. ITA No.508/Mum/2025 (AY 2023-24) Raj Coop Housing Society 3 4. We have considered the rival submissions of both the parties and have gone through the order of lower authorities carefully. It is an admitted fact that in the original return of income the assessee has not claimed deduction under section 80P. Such claim was made in revised return of income. Revised return of income was filed beyond the time limit prescribed under section 139(4), resultantly, such claim was not allowed by CPC. The ld CIT(A) also confirmed the adjustment made by CPC by taking view that as per provision of section 80AC, for claiming such deduction, the assessee was required to file return of income within due date specified under section 139(1) which was 31.10.2023. We find that delay in filing revised return of income has now been allowed by ld PCIT vide his order dated 29.01.2025. Such delay is condoned on recommendation of AO, sent through Range head vide report date 24.12.2024. Admittedly, the ld CIT(A) was not having benefit of order of ld PCIT. Before us, the ld AR of the assessee neither has filed copy of revised return nor computation of total income or the bifurcation of such claim, under which clause or sub-clause such relief is claimed. The ld AR of the assessee still claimed that the order of ld CIT(A) be quashed. 5. We are conscious of the fact that the AO has no power to accept and entertain revised claimed in absence of revised return of income, as has been held by Hon’ble Supreme Court in Goetz (India) Limited Vs CIT (2008) 284 ITR 383-SC. In the present case the assessee failed to file revised return in time. We find that Hon’ble Jurisdictional High Court in CIT Vs. Prithivi Brokers & Share Holders (P) Ltd. 349 ITR 336/208 Taxman 498 (Bom) and Gujarat High Court in CIT Vs. Mitesh Impex (2014) 367 ITR 85 (Guj) held that Tribunal have jurisdiction to consider the additional claim and discretion to permit additional ground by way of ITA No.508/Mum/2025 (AY 2023-24) Raj Coop Housing Society 4 additional claims. Such claims need not to be those which became available on account of change of circumstances of law but which was even available when return was filed. Thus, considering the specific facts of the case and the facts that delay in filing revised return of income has already been condoned by ld PCIT, therefore, the revised claim of assessee under section 80P is admitted and grounds of appeal raised by the assessee is restored back to the file of Jurisdictional AO to consider the claim of assessee and pass order in accordance with law. Needless to direct that before passing the order afresh, the AO shall allow reasonable opportunity of hearing to the assessee. The assesses is also allowed liberty to file additional evidence in support of its claim. The assessee is also directed to provide all required details to the AO. In the result, the grounds of appeal raised by the assessee are allowed for statistical purpose. 6. In the result, this appeal of the assessee is allowed for statistical purpose. Order announced in open Court on 17/03/2025. Sd/- Sd/- (GIRISH AGARWAL) (PAWAN SINGH) Accountant Member Judicial Member Mumbai / Dated: 17 /03/2025 Divya Nandgaonkar (stenographer) आदेश की प्रनतनलनप अग्रेनषत/ Copy of the order forwarded to : • अपीलार्थी/ The Appellant • प्रत्यर्थी/ The Respondent • आयकि आयुक्त/ CIT • नवभागीय प्रनतनननर्, आयकि अपीलीय आनर्किण, सूित/ DR, ITAT, SURAT • गार्ा फाईल/ Guard File By order/आदेश से, सहायक पंजीकाि आयकि अपीलीय अनर्किण, सूित "