Primary Agricultural Credit Co-operative Society Ltd. Vs ITO (ITAT Bangalore)
Belated Return Filed in Response to Section 148 Cannot Revive Section 80P Deduction: Bangalore ITAT
The Bangalore ITAT held that a Primary Agricultural Credit Co-operative Society is not entitled to deduction under section 80P where the return of income was not filed within the due date prescribed under section 139(1). The Tribunal ruled that the mandatory condition introduced by the amended section 80AC from AY 2018-19 applies equally to co-operative societies claiming deduction under section 80P.
The assessee-society had not filed its return within the statutory due date. Subsequently, pursuant to a notice under section 148, it filed a return on 19.04.2022 claiming deduction of ₹11.50 lakh under section 80P. The Assessing Officer denied the deduction on the ground that the return was not filed within the time prescribed under section 139(1).
Before the Tribunal, the assessee argued that section 80P is a beneficial provision and that the deduction claim made in the return filed in response to section 148 ought to be allowed. However, the Tribunal referred to the amended section 80AC(ii), effective from AY 2018-19, which expressly provides that deductions under Chapter VI-A under the heading “C – Deductions in respect of certain incomes”, including section 80P, shall not be allowed unless the return is furnished on or before the due date under section 139(1).
The Tribunal observed that filing a return in response to section 148 cannot cure the failure to file the original return within the due date prescribed under section 139(1). Since the assessee admittedly filed the return only after issuance of the reopening notice and had not obtained any condonation of delay, the statutory condition contained in section 80AC remained unfulfilled.
Accordingly, the Tribunal upheld the denial of deduction under section 80P and also sustained the consequential penalty under section 270A arising from the quantum addition. All three appeals filed by the assessee were dismissed.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
These appeals filed by the assessee are directed against the order of the learned CIT(A), NFAC Delhi vide order Nos. ITBA/NFAC/S/250/2025-26/1086561765(1) dated 26.02.2026 and No. ITBA/NFAC/S/250/2025-26/1086903345(1) dated 05.03.2026 respectively for the Assessment Year 2018-19 arising out of the orders passed under section 147 r.w.s 144B of the Act dt 07.02.2023 and 17.03.2023, for the Assessment Year 2018-19 and penalty order under section 270A dated 04.08.2023. Since the assessee is same, these appeals are clubbed and heard together and a consolidated order is passed. Firstly, we take up appeal in ITA No. 1850/Bang/2026. The facts are culled out there from.
