R 249 Kulithalai Co-op Pard Bank Limited Vs ITO (ITAT Chennai)
80P Denial Can’t Pre-empt Condonation – CPC & CIT(A) Jumped the Gun; Matter Remanded
Chennai ITAT set aside the order denying deduction u/s 80P to R 249 Kulithalai Co-op Primary Bank Ltd. for AY 2022-23, holding that the authorities acted prematurely while a condonation petition u/s 119(2)(b) was pending before the PCIT. The Assessee, a co-operative credit society, had filed its return belatedly u/s 139(4) and claimed deduction u/s 80P, which CPC denied by invoking section 80AC for failure to file within due date u/s 139(1).
While CIT(A) accepted that he had no jurisdiction to condone delay and that the Assessee had rightly approached the CCIT/PCIT under CBDT Circular No. 13/2023, he nevertheless dismissed the appeal without awaiting the outcome of the condonation application. ITAT held that such an approach was unsustainable. Once a competent authority is seized of the condonation issue, the downstream consequences on deduction eligibility cannot be foreclosed.
Accordingly, ITAT set aside the appellate order and restored the matter to the JAO with a direction to decide the allowability of deduction u/s 80P in accordance with the decision of the PCIT on the condonation petition. Appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
This appeal by the assessee is filed against the order of the Commissioner of Income Tax, Appeal, Addl. JCIT (A)-4, Kolkata for the assessment year 2022-23, vide order dated 17.07.2025.
