THE CUTTACK URBAN CREDIT COOPERATIVE SOCIETY LIMITED,CUTTACK V. ITO WARD- 1(1), CUTTACK

ITA 297/CTK/2025

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The case involves The Cuttack Urban Credit Cooperative Society Limited, the appellant, contesting the denial of deduction under Section 80P of the Income Tax Act by the Income Tax Officer (ITO), Ward-1(1), Cuttack, the respondent. The appeals pertain to the assessment years 2015-2016 and 2017-2018. The primary contention was the non-allowance of deductions claimed in the returns filed in response to notices under Section 148 of the Act, which were argued to be compliant with the legal provisions applicable prior to the amendment of Section 80AC on April 1, 2018. The Tribunal found that the amended provisions did not apply retrospectively to the assessment years in question, thus entitling the assessee to the deductions claimed.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708619 (ITAT-CUTTACK)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2015-2016
• Laws Referred To: Section 80P of the Act, Section 80AC of the Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NISHANTH RAO B
• Assessee Lawyers: S.K.SARANGI
• Keywords: Set aside; Bad and doubtful debts

Judgement Text

" आयकर अपीलीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK श्री जाजज माथन, न्याययक सदस्य एवं श्री राजेश क ुमार, लेखा सदस्य क े समक्ष । (THROUGH VIRTUAL HEARING) BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अपील सं/ITA Nos.297&298/CTK/2025 (नििाारण वर्ा / Assessment Year : 2015-2016 & 2017-2018) The Cuttack Urban Credit Cooperative Society Limited Dolamundai, Mahatab Road, Cuttack-753001 Vs ITO, Ward-1(1), Cuttack PAN No. :AACAT 5449 H (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri S.K.Sarangi, AR राजस्व की ओर से /Revenue by : Shri Nishanth Rao B, Sr. DR सुनवाई की तारीख / Date of Hearing : 15/07/2025 घोषणा की तारीख/Date of Pronouncement : 15/07/2025 आदेश / O R D E R Per Bench : These are two appeals filed by the assessee against the separate orders of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, both dated 21.03.2025, for the assessment years 2015-2016 & 2017- 2018. 2. It was submitted by the ld AR that the AO had denied the assessee the benefit of deduction u/s.80P of the Act on the ground that the original return had not been filed and there was no claim in the original return. It was the submission that the assessee had admittedly not filed regular return and had filed the return in response to the notice issued u/s.148 of the Act. It was the submission that the requirement of filing of regular return was made mandatory for the purpose of claiming deduction u/s.80P ITA Nos.297&298/CTK/2025 2 of the Act as per the provisions of Section 80AC of the Act w.e.f. 01.04.2018. It was the submission that the impugned assessment year before the Tribunal are A.Y.2015-2016 & 2017-2018. It was the submission that the AO may be directed to recompute the income of the assessee and grant the assessee the benefit of deduction u/s.80P of the Act as per law for both the years under consideration. 4. In reply, ld Sr DR submitted that the assessee has not claimed deduction u/s.80P of the Act in respect of the income generated from members. It was the submission that for the assessment year 2017-2018 in relation to write off of bad debts details were not produced before the AO. 5. We have considered the rival submissions. A perusal of the provisions of Section 80AC of the Act for requirement of filing return for the purpose of deduction u/s.80P of the Act came into statute book w.e.f. 01.04.2018. The impugned assessment year before the Tribunal are A.Ys.2015-2016 & 2017-2018. The said amended provisions of Section 80AC of the Act would not be applied to the assessment years 2015-2016 & 2017-2018. Consequently the assessee is entitled to claim deduction u/s.80P of the Act even in the return filed in response to the notice issued u/s.148 of the Act for the assessment year 2015-2016 and for the assessment year 2017-2018 as the amendment is effective from 01.04.2018. This being so, the assessment order and the order of the ld. CIT(A) are set aside and the issues in this appeal are restored to the file of the AO for readjudication. The AO shall grant the assessee the benefit ITA Nos.297&298/CTK/2025 3 of deduction u/s.80P of the Act and compute the same in accordance with law. 6. In regard to the bad debts for the assessment year 2017-2018, this issue is also restored to the file of AO for readjudication and for granting the assesseee adequate opportunity to substantiate its claim insofar as when the deduction u/s.80P of the Act is recomputed the issue of write off would also have bearing on the same. 7. In the result, both appeals of assessee are partly allowed for statistical purposes. Order dictated and pronounced in the open court on 15/07/2025. Sd/- (राजेश क ुमार) (RAJESH KUMAR) Sd/- (जाजज माथन) (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 15/07/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) आयकर अपीलीय अधिकरण, कटक/ITAT, Cuttack 1. अपीलाथी / The Appellant- 2. प्रत्यथी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कटक / DR, ITAT, Cuttack 6. गार्ज फाईल / Guard file. सत्यापपत प्रयत //True Copy// "