THE ERODE DISTRICT CO-OPERATIVE UNION,ERODE V. THE INCOME TAX OFFICER, WARD 1(1) ERODE, ERODE

ITA 3277/CHNY/2024

AI Insights

The case involves The Erode District Co-operative Union appealing against the order of the Additional/Joint Commissioner of Income Tax (A)-6, which was confirmed by the ld.CIT(A). The primary contention was regarding the denial of deduction under section 80P(2)(d) of the Income Tax Act, 1961, concerning interest income from investments in co-operative banks. The assessee argued that the ld.CIT(A) erred in denying the deduction without waiting for the outcome of a condonation petition for the delayed return of income. The Tribunal found merit in the assessee's argument and remanded the case back to the ld.CIT(A) to await the decision on the condonation petition before making a final judgment on the issues.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472395 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V. ASWATHY
• Assessee Lawyers: A. VIJAYALAKSHMI
• Keywords: Set aside; Competent authority
• Section: 119; 143(1); 139(1)

Judgement Text

" आयकर अपीलीय अिधकरण ‘सी’ Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI माननीय ŵी मनोज क ुमार अŤवाल ,लेखा सद˟ एवं माननीय ŵी मनु क ुमार िगįर, Ɋाियक सद˟ क े समƗ। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER AND HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER आयकरअपील सं./ ITA No.3277/Chny/2024 (िनधाŊरणवषŊ / Assessment Year: 2019-2020) The Erode District Co-operative Union, No.3, Chinnamuthu First Street, Edayankattuvalasu Erode 638 011. [PAN: AABAT 6036B] Vs. The Income Tax Officer, Ward 1(1) Erode (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) अपीलाथȸ कȧ ओर से/ Appellant by : Ms. A. Vijayalakshmi, C.A. (Tirupur) Ĥ×यथȸ कȧ ओर से /Respondent by : Ms. V. Aswathy, JCIT. सुनवाई कȧ तारȣख/Date of Hearing : 25.02.2025 घोषणा कȧ तारȣख /Date of Pronouncement : 25.03.2025 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member) This appeal by assessee is arising out of the order of the Additional/Joint Commissioner of Income Tax (A)-6, Office of the Commissioner of Income Tax (Appeal), Mumbai in Order No.ITBA/APL/S/250/2024-25/1069871179 (1), dated 23.10.2024. The assessment was framed by the DDIT/ADIT, CPC, Bengaluru for the assessment year 2019-2020, u/s. 143(1) of the Income Tax Act, 1961 (in short ‘’the Act’) vide order dated 05.01.2021. 2 ITA No. 3277/Chny/2024 2. Brief facts of the case are that the appellant had filed the return of income u/s 139(1) of the Act on 29.11.2020 declaring total income of Rs. Nil. As per order u/s 143(1) dated 05.01.2021, total income was computed at Rs.11,80,910/-. In the return of the income the appellant had claimed the set off of current years business loss of Rs.25,21,399/- against the income from other sources, however the AO, CPC had restricted the set off to Rs.13,40,490/-. Being aggrieved the appellant has preferred an appeal before the ld.CIT(A). The assessee’s claim for deduction u/s 80P(2)(d) regarding interest income from investments in co-operative banks was also denied by the ld/CIT(A) for the reason that the deduction was inadmissible since no specific claim had been in the return, citing the section 80A(5) of the Act. The ld. CIT(A) confirmed the action of the ld. Assessing Officer. Aggrieved, assessee preferred an appeal before the Tribunal. 3. Before us, the ld.counsel submitted that the ld.CIT(A) erred in denying the benefit of deduction claimed u/s 80P(2)(d) regarding interest income from investments in co-operative banks, without waiting for the outcome of the condonation petition filed u/s 119 of the Act before the competent authority/CBDT, New Delhi for the validating delayed return of income. He further, contended that the ld.CIT(A) erred in denying the claim of deduction u/s 80P(2)(d) regarding interest income from investments in co-operative banks on account of claim not claimed in the return of income. 4. The ld. DR relied upon the order of the ld.CIT(A). 5. We have heard the both parties. We are of the considered view that the ld.CIT(A) should have waited for the outcome of the condonation petition filed 3 ITA No. 3277/Chny/2024 before the competent authority/CBDT for the validating delayed return of income. Hence, we set aside and remand back the appeal to the file of the ld.CIT(A) to await for the outcome of the competent authority/CBDT on the condonation petition for validating delayed return filed. After receipt of the order of the competent authority/CBDT on the aforesaid petition, the ld.CIT(A) will take his judicial view on all issues/fresh issues according to law. 6. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 25th day of March, 2025. Sd/- Sd/- (मनोज क ुमार अŤवाल) (मनु क ुमार िगįर) (MANOJ KUMAR AGGARWAL) लेखा सदस्य / ACCOUNTANT MEMBER (MANU KUMAR GIRI) Ɋाियक सद˟ / JUDICIAL MEMBER चेɄई Chennai: िदनांक Dated :25-03-2025 KV आदेश कȧ ĤǓतͧलͪप अĒेͪषत /Copy to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT, Chennai/Coimbatore/Madurai/Salem. 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF "