S 172 SAMUDRAM PACCS,SALEM V. ITO, WARD-1(6), SALEM

ITA 3034/CHNY/2024

AI Insights

The case involves the Samudram Primary Agricultural Co-operative Credit Society, which appealed against the order of the Learned Commissioner of Income Tax (Appeals), Bhubaneswar, confirming the disallowance of a deduction claimed under section 80P of the Income Tax Act, 1961. The deduction of Rs. 31,74,270 was initially disallowed by the Centralized Processing Centre, Bengaluru, on the grounds that the return was filed beyond the due date prescribed under section 139(1) of the Act. The assessee argued that the delay was due to the appointed auditor not completing the audit on time and had filed a condonation petition, which was pending before the CBDT at the time of the appeal. The Tribunal decided to remand the matter back to the Addl. CIT(A) to await the decision of the CBDT on the condonation petition before making a final decision on the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107060 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S. EASWAR
• Assessee Lawyers: S.SENTHIL KUMAR
• Keywords: Condonation of delay; Set aside; Co-operative Credit Society
• Section: 143(1); 139(1); 80P; 119(2)(b)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0019ी यस यस िव ने रिव, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम' BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3034/Chny/2024 िनधा 7रण वष7 /Assessment Year: 2021-22 S 172 Samudram Primary Agricultural Co-operative Credit Society, Samudram Post, Edappadi Taluk, Salem District – 636 306. [PAN: AAEAS 7781B] Vs. The Income Tax Officer, Ward-1(6), Salem. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थD की ओर से/ Appellant by : Shri S. Senthil Kumar, Advocate, Erode FGथD की ओर से /Respondent by : Shri S. Easwar, JCIT सुनवा ई की ता रीख/Date of Hearing : 09.04.2025 घोषणा की ता रीख /Date of Pronouncement : 15.04.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee is against the order of Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A), Bhubaneswar [hereinafter “Addl. CIT(A)”] dated 08.11.2024 in the matter of intimation issued u/s.143 (1) of the Income Tax Act, 1961 (hereinafter “the Act”) issued by Centralized Processing Centre, Bengaluru (hereinafter “CPC”) dated 02.11.2022. ITA No.3034/Chny/2024 :- 2 -: 2. The only effective ground of appeal in this appeal of assessee is against the order of Ld. Addl. CIT(A) in confirming the disallowance of Rs. 31,74,266/- claimed u/s. 80P of the Act. 3. The assessee is a co-operative society and filed its return of income on 25.03.2022, declaring a total income at Nil. The assessee in the return of income has claimed deduction u/s. 80P of the Act of Rs.31,74,270/-. However, the CPC, Bengaluru through intimation u/s. 143(1) of the Act, disallowed the claim on the ground that the return was filed beyond the due date prescribed u/s 139(1) of the Act. Aggrieved, the assessee filed an appeal before the Ld. Addl. CIT(A). The Ld. Addl. CIT(A) has confirmed the disallowance on the basis that the return was not filed within the due date and, therefore, as per Section 80AC of the Act, the deduction u/s. 80P of the Act was not allowable. 4. The Ld. Authorized Representative (A.R) of the assessee has submitted that the assessee has filed a petition for condonation of delay in filing return of income u/s. 119(2)(b) of the Act, which is currently pending before CBDT. The Ld. AR further submitted that the Ld. Addl. CIT(A) has decided the appeal without considering the pendency of this condonation petition. Accordingly, the Ld. AR ITA No.3034/Chny/2024 :- 3 -: requested that the order of Ld. Addl. CIT(A) be set aside and the matter be restored with a direction to await the decision of the CBDT. 5. On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities. 6. We have heard the rival submissions, and perused the materials available on record. The Ld. Addl. CIT(A) has confirmed the disallowances of the claim of deduction u/s 80P of the Act on the ground that the return was not filed within the due date prescribed, and therefore, in light of Section 80AC of the Act, the deduction was not allowable. However, the assessee has submitted that a condonation petition u/s. 119(2)(b) of the Act has been filed and is pending before CBDT. The Ld. Addl. CIT(A) did not take note of this fact into account while deciding the appeal. The assessee has submitted that the delay in filing the return was attributed to the fact that the appointed auditor had not completed the audit by the due date. Since, the assessee has filled a condonation petition, which is still pending, we are of the view that the matter requires reconsideration. In view of above, we remand the matter back to the file of Ld. Addl. CIT(A) for deciding the appeal after the decision of the CBDT. Thus, the appeal filed by the assessee is allowed for statistical purposes only. ITA No.3034/Chny/2024 :- 4 -: 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 15th April, 2025. Sd/- Sd/- (यस यस िव ने रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 15th April, 2025. EDN/- आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Salem 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "