Ramarajapuram Primary Agricultural Co-Operative Credit Society Vs ADIT (Madras High Court)
The Madras High Court dealt with two writ petitions filed by a Primary Agricultural Co-operative Credit Society challenging auto-generated intimations issued under Section 143(1) of the Income Tax Act for Assessment Years 2019–2020 and 2023–2024. The petitioner contended that due to statutory requirements under the Tamil Nadu Co-operative Societies Act, returns could only be filed after completion of statutory audit, which caused delay. It was further submitted that lack of expertise resulted in failure to file returns within the prescribed time, leading to denial of deduction under Section 80P. The petitioner also argued that the intimations were cryptic and did not provide sufficient reasons, thereby affecting its ability to file an effective appeal.
The Revenue opposed the petitions, stating that an appeal against such intimations is maintainable under Section 246A(1)(a) of the Act. It argued that the petitioner failed to comply with Section 80AC, which mandates timely filing of returns for claiming deductions under Section 80P. The Revenue further submitted that the petitioner should have approached the competent authority under Section 119(2)(b) seeking condonation of delay instead of directly filing belated returns, which were rightly rejected.
The Court considered the submissions and noted that co-operative societies require proper guidance in taxation matters. It reiterated earlier directions to the Registrar of Co-operative Societies to ensure engagement of qualified personnel and establishment of supervisory mechanisms for compliance, including timely filing of returns.
