THE KUMARAPURAM SERVICE CO-OPERATIVE BANK LIMITED NO 1449 ERICKAVU,ALAPPUZHA V. ITO, WARD 2, ALAPPUZHA

ITA 502/COCH/2025

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The case involves The Kumarapuram Service Cooperative Bank Ltd, which is a cooperative society engaged in accepting deposits and providing credit facilities to its members. For the Assessment Year 2021-22, the bank filed its income tax return late, on 31/03/2022, claiming a deduction under section 80P of the Income Tax Act. The return was processed by the CPC, which disallowed the deduction due to the late filing, citing section 80AC. The bank appealed this decision, arguing that it had sought condonation for the late filing from the Chief Commissioner of Income Tax. However, both the CIT(A) and the Tribunal upheld the disallowance, emphasizing the mandatory nature of the conditions under section 80AC.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717289 (ITAT-COCHIN)
• Duration Of Justice: 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-08-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2021-2022
• Appeal Filed On: 12-07-2025
• Other Referred Cases: CIT vs. Shelcon Properties P. Ltd. [2015] 370 ITR 305 (Cal.), Suolificio Linea Italia (India) (P.) Ltd. vs. JCIT [2018] 407 ITR 16 (Cal.)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: SABU C S

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM ITA No. 502/Coch/2025 Assessment Year: 2021-22 The Kumarapuram Service .......... Appellant Cooperative Bank Ltd No. 1449, Erickavu P.O., Karthikappally, Alappuzha, Kerala [PAN: AAABT 3036 B] vs. ITO, Ward-2, Alappuzha .......... Respondent Appellant by: Shri Sabu C S, CA Respondent by: Smt. Leena Lal, Sr. DR Date of Hearing: 05.08.2025 Date of Pronouncement: 13.08.2025 O R D E R This appeal filed by the assessee is directed against the order of the ADDL/JCIT(A), Panchkula [CIT(A)] dated 16.05.2025 for Assessment Year (AY) 2021-22. 2. Brief facts of the case are that assessee is a cooperative society registered under Kerala Co-operative Societies Act, 1969. It is classified as primary agricultural credit cooperative society. It is engaged in the business of accepting deposits from members and providing credit facilities to its members. The return of income for Printed from counselvise.com 2 ITA No. 502/Coch/2025 The Kumarapuram Service Co-op Bank Ltd No.1449 the A.Y. 2021-22 was filed on 31/03/2022 declaring income of Rs.39,76,959/- after claiming deduction u/s. 80P of the Act. The said return of income was processed by CPC u/s. 143(1) Income Tax Act, 1961 (for short, 'the Act') vide intimation dated 02/11/2022 disallowing the claim for deduction u/s. 80P by holding that the return of income was not filed within the due date prescribed u/s. 139(1) of the Act as the appellant filed the return of income on 31/03/2022 as against the due date of 15/03/2022 placing reliance on the provisions of section 80AC of the Act. 3. Being aggrieved by the said intimation, an appeal was filed before the CIT(A) contending that since appellantfiled an application seeking condonation in filing the return of income before the Chief Commissioner of Income Tax, the appeal should be allowed. However, learned CIT(A) after making reference to the provisions of section 80AC and the judgments of Hon'ble Calcutta High Court in case of CIT vs. Shelcon Properties P. Ltd. [2015] 370 ITR 305 (Cal.) and Suolificio Linea Italia (India) (P.) Ltd. vs. JCIT [2018] 407 ITR 16 (Cal.) held that when the conditions precedent laid down by u/s. 80AC of the Act were not fulfilled, the benefit of provisions of section 80P cannot be allowed, as the conditions laid down in section 80AC are mandatory in nature and filing of return of income within due date prescribed u/s. 139(1) is also mandatory. Printed from counselvise.com 3 ITA No. 502/Coch/2025 The Kumarapuram Service Co-op Bank Ltd No.1449 4. Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal. The issue in present appeal relates to the validity of prima-facie adjustment made by CPC while processing the return of income u/s. 80P by disallowing the claim for deduction u/s. 80P of the Act. The provisions of section 80AC provides that in order to claim deduction u/s. 80P, the return of income should be filed by an assessee within the due date prescribed u/s. 139(1) of the Act. It is a condition precedent for claiming deduction u/s. 80P of the Act as held by the Hon'ble Calcutta High Court in the case of Shelcon Properties P. Ltd. (supra), it is a mandatory condition, non- fulfillment of this condition renders the claim incorrect as defined in section 143(1) of the Act. Therefore, we do not find any illegality in the order passed by the learned CIT(A). Thus, this appeal filed by the assessee stands dismissed. 5. In the result, appeal filed by the assessee stands dismissed. Order pronounced in the open court on 13th August, 2025. Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 13th August, 2025 vr/- Printed from counselvise.com 4 ITA No. 502/Coch/2025 The Kumarapuram Service Co-op Bank Ltd No.1449 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin Printed from counselvise.com "