Ramanaickenpet Primary Agricultural Co-Operative Credit Society Ltd. Vs ITO (ITAT Chennai)
Chennai ITAT: Section 80P Deduction Not Available Where Return Is Filed Only in Response to Section 148 Notice
The Chennai ITAT held that a Primary Agricultural Co-operative Credit Society is not entitled to deduction under section 80P if it fails to file its return of income within the due date prescribed under section 139(1), even though it subsequently files the return in response to a notice issued under section 148.
The assessee had not filed its original return for AY 2019-20. Based on information received through the Insight Portal regarding substantial cash deposits, the Assessing Officer initiated reassessment proceedings by issuing a notice under section 148. The assessee thereafter filed its return declaring nil income after claiming deduction under section 80P. It contended that, being a co-operative society governed by the Tamil Nadu Co-operative Societies Act, its accounts were audited by Government-authorised auditors and it was under a bona fide belief that filing an income-tax return was not mandatory where the entire income was eligible for deduction under section 80P.
Rejecting these contentions, the Tribunal held that there was no dispute that the assessee had failed to file the return within the due date under section 139(1) and had filed it only after issuance of notice under section 148. Following the Madras High Court’s decision in AA520 Veerappampalayam Primary Agricultural Cooperative Credit Society Ltd. v. DCIT, the Tribunal held that timely filing of the return is a mandatory condition for claiming deduction under section 80P, and a return furnished in response to a reassessment notice cannot cure the original default. Accordingly, the denial of deduction under section 80P was upheld and the assessee’s appeal was dismissed.
Cases Discussed:
FULL TEXT OF THE ORDER OF ITAT CHENNAI
