Case Law Details
Nileshwar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham Vs CIT (Kerala High Court)
Disposing an IT Appeal in M/s. Nileshwar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham Vs. the Commissioner of Income Tax (I.T.A. NO.120 of 2019 dated: 14.03.2023) it is held by the Hon’ble High Court of Kerala that, a return filed by a co-operative society under the IT Act after the due dates prescribed, even though it is filed before the completion of the assessment, can only be treated as non-est. That apart, the statutory scheme permits the allowance of a deduction U/s. 80P of the IT Act only if it is made in a return recognised as such under the IT Act.
FACTS OF THE CASE
The appellant/assessee is a Labour Co-operative Society registered under the Kerala Co-operative Societies Act. The Society was formed for the financial and social welfare of toddy tappers/workers and for tapping and selling toddy. For the assessment year 2009-10, the appellant did not file any return of income. Thereon, the Department issued a notice U/s.148 of the IT Act to the appellant on 6.2.2012 requiring the appellant to furnish a return of income within 30 days of receipt of the notice. The appellant failed to file the return of income in response to the notice. A return was however filed by the appellant on 5.7.2012, which was much beyond the date for filing of return in terms of Section 139(4) of the IT Act. The return of income for the assessment year 2009-10 should have been filed on or before 31.3.2011 in terms of Section 139(4) of the IT Act. Since the return of income was filed after the expiry of the time allowed U/s. 139(4) and much after the due date mentioned in the notice U/s.148, the Assessing Officer treated the same as invalid and proceeded to complete the assessment in terms of Section 144 of the IT Act. While completing the assessment, the claim of the appellant for deduction U/s.80P was disallowed on the ground that the claim for deduction had not been made in a valid return filed by the appellant in terms of the IT Act. It was the stand of the Assessing Officer that in view of the provisions of Section 80A(5) of the IT Act, the claim for deduction could not be considered. The same was happened pertaining to the AY 2010-11 also. The appeals filed before the appellate authority and again before the Tribunal were failed and then came before the High Court.
HELD BY THE COURT
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