S55 Keerippatty Primary Agricultural Co-op. Credit Society Ltd. Vs ITO (ITAT Chennai)
The ITAT Chennai set aside the CIT(A)’s order and held that once the delay in filing the return is condoned u/s 119(2)(b), the very basis for denying deduction u/s 80P disappears.
The assessee, a Primary Agricultural Co-operative Credit Society (PACCS), filed its return for AY 2020-21 belatedly due to statutory audit under the TN Co-operative Societies Act being completed late. The CPC denied 80P in the 143(1) intimation solely because the return was not filed within the due date u/s 139(1).
Subsequently, the CCIT, Coimbatore condoned the delay u/s 119(2)(b). Despite this, the CIT(A) refused relief, treating the CPC processing and the condonation as “separate proceedings” — an approach the Tribunal found legally untenable.
The ITAT held that once the competent authority condones the delay, the foundation of the CPC’s denial is obliterated, and there remains no embargo on allowing 80P. The CIT(A) ought to have given effect to the 119(2)(b) order, instead of ignoring it on technical grounds.
Accordingly, the Tribunal directed the AO to process the return dated 20.03.2021 ignoring the delay and grant deduction u/s 80P in accordance with law, after due opportunity. The appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
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