Bharat Electronics M C Unit Employees Co-Op. Credit Soc Ltd Vs Chief Commissioner of Income Tax (Andhra Pradesh High Court)
The petitioner, a co-operative society registered under the Andhra Pradesh Co-operative Societies Act, 1964, provides credit facilities to its members, who are employees of Bharat Electronics Limited, Machilipatnam. The respondent authorities issued a notice under Section 148 of the Income Tax Act, 1961 requiring the petitioner to furnish its return under Section 139(1). Pursuant to the notice, the petitioner filed its return for Assessment Year 2019-2020 on 23.08.2023 along with an application under Section 119(2)(b) seeking condonation of delay in filing the return so that it could claim deduction under Section 80P. The petitioner stated that it was under a bona fide belief that its activities were exempt from the provisions of the Income Tax Act and that it filed the return after consulting a tax consultant upon receipt of the notice under Section 148. The petitioner also relied upon CBDT Circular No.13/2023 dated 26.07.2023.
By order dated 12.02.2025, the first respondent rejected the condonation application, observing that the petitioner had failed to satisfy the statutory and procedural requirements for condonation of delay, including establishing sufficient cause or circumstances beyond its control. In the counter affidavit, the respondents reiterated the reasons contained in the impugned order and further contended that, in the absence of documentary evidence explaining the delay, the petitioner was not entitled to the benefit of CBDT Circular No.13/2023.
