THE BANK EMPLOYEES COOPERATIVE CREDIT SOCIETY,KOZHIKODE V. ITO, WARD 1(3), KOZHIKODE

ITA 170/COCH/2025

AI Insights

The case involves The Bank Employees Co-operative Credit Society, which appealed against the order of the National Faceless Assessment Centre / Commissioner of Income-tax (Appeals) regarding the disallowance of a deduction claimed under section 80P for the assessment year 2018-2019. The primary contention was the late filing of the income tax return, which was filed on 23.09.2021, significantly past the due date. The Assessing Officer (AO) disallowed the deduction citing non-compliance with the timely filing requirement under section 139(1). The CIT(A) upheld this decision, referencing a judgment by the Hon'ble jurisdictional High Court. The Tribunal, after considering the submissions and the relevant legal precedents, dismissed the appeal, affirming that the assessee was not entitled to the deduction as the return was not filed within the prescribed due date.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126668 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Other Referred Cases: Nileshwar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham v. CIT (2023) 459 ITR 730 (Ker.)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL; SENIOR
• Keywords: Reasonable cause

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, COCHIN Before Shri Inturi Rama Rao, Accountant Member ITA No.170/Coch/2025 : Asst.Year 2018-2019 The Bank Employees Co- operative Credit Society 11/45AKuriyal Lane Kozhikode – 673 001. PAN : AABAT2177P. v. The Income Tax Officer Ward 1(3) Kozhikode. (Appellant) (Respondent) Appellant by : --- None --- Respondent by : Smt.Leena Lal, Senior AR Date of Hearing : 13.03.2025 Date of Pronouncement : 23.04.2025 O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Assessment Centre / Commissioner of Income- tax (Appeals) [“CIT(A)” for short] dated 03.08.2023 for the assessment years 2018-2019. 2. There is a delay of 508 days in filing this appeal before the Tribunal. The appellant filed a condonation petition along with an Affidavit of the Secretary of the appellant, stating therein the reasons for the belated filing of this appeal that the assessee had no knowledge of the appeal order until, they received the notice of demand dated 09.01.2025, which resulted in the belated filing of the appeal. The assessee further submits that upon receiving the notice, the assessee informed the authorized representative for taking necessary action, ITA No.170/Coch/2025. The Bank Employees Co-op Credit So.Ltd. 2 including filing an appeal against the said demand. However, due to ill health of the authorized representative, there was further delay in filing the appeal. It is therefore submits that the delay is neither intentional nor deliberate but due to the reasons beyond its control and prayed to condone the delay. 2.1 On a careful perusal of the reasons stated in the affidavit, I am satisfied that there is reasonable cause in belated filing of this appeal before the Tribunal and no latches can be attributed to the assessee. Therefore, I condone the delay and admit the appeal for adjudication. 3. The appellant is a co-operative society, registered under the Kerala Co-operative societies Act, 1969. The return of income for the assessment year 2018-2019 was filed on 23.09.2021 declaring Nil income after claiming deduction u/s.80P of the Income-tax Act, 1961 (“the Act” hereinafter) amounting to Rs.31,43,113. The assessment was completed u/s.143(3) r.w.s. 143(3A) & 143(3B) of the Act. While doing so, the AO disallowed the deduction claimed u/s.80P of the Act, by holding that the assessee did not file the return of income within the time prescribed u/s.139(1) of the Act. 4. Aggrieved by the assessment order, the assessee preferred appeal before the CIT(A), who vide the impugned order dated 03.08.2023 upheld the action of the AO following the judgment of the Hon’ble jurisdictional High Court in the case of Nileshwar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham v. CIT (2023) 459 ITR 730 (Ker.) by holding that since the assessee had not filed the return of ITA No.170/Coch/2025. The Bank Employees Co-op Credit So.Ltd. 3 income within the due date prescribed u/s.139(1) of the Act, it is not entitled for deduction u/s.80P of the Act. 5. Aggrieved by the order of the CIT(A), the assessee is in appeal before the Tribunal in the present appeal. 6. The learned Senior DR submits that the issue in question is squarely covered by the judgment of the Hon’ble jurisdictional High Court in the case of Nileshwar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham v. CIT (2023) 459 ITR 730 (Ker.). 7. I heard the heard rival submissions and perused the material available on record. The solitary issue for our consideration is whether the assessee service co-operative bank is entitled for deduction u/s.80P of the Act, inspite of the return not being filed within the due date prescribed u/s.139(1) of the Act. The issue is no longer res integra. The Hon’ble jurisdictional High Court in the case of Nileshwar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham (supra) had held that for claiming deduction u/s.80P, the assessee-society must make the said claim in the return of income filed within the due date prescribed u/s.139(1) of the Act. In the light of the latest judgment of the Hon’ble jurisdictional High Court in the case of Nileshwar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham (supra), I hold that the assessee service co-operative bank is not entitled for deduction u/s.80P of the Act. It is ordered accordingly. ITA No.170/Coch/2025. The Bank Employees Co-op Credit So.Ltd. 4 8. In the result, the appeal filed by the assessee is dismissed. Order pronounced on this 23rd day of April, 2025. Sd/- (Inturi Rama Rao) ACCOUNTANT MEMBER Cochin; Dated : 23rd April, 2025. Devadas G* Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT, Cochin. 4. The DR, ITAT, Cochin. 5. Guard File. Asst.Registrar/ITAT, Cochin "