Kasma Prathmik Shishak Sahakari Vs ITO (ITAT Pune)
Income Tax Appellate Tribunal (ITAT), Pune Bench, has ruled in favor of Kasma Prathmik Shishak Sahakari, a cooperative society, allowing its claim for deduction under Section 80P of the Income-tax Act, 1961. The Tribunal set aside the orders of the Assessing Officer (AO) and the Commissioner of Income Tax (Appeals) [CIT(A)], which had denied the deduction primarily due to a delay in e-verification of the income tax return. The decision clarifies that a valid claim for deduction under Section 80P can be made in a return filed in response to a notice under Section 142(1), and that subsequent e-verification, even if delayed, can be regularized under specific CBDT circulars.
Background of the Case
The case pertains to the Assessment Year 2017-18. Kasma Prathmik Shishak Sahakari, a cooperative society, did not file its regular income tax return under Section 139(1) of the Act. However, information regarding a cash deposit of Rs. 5,31,740 during the demonetization period prompted the Assessing Officer to issue a notice under Section 142(1) on December 15, 2017, requiring the society to file its return for AY 2017-18.
In compliance with this notice, the assessee furnished its original return on February 28, 2018, declaring an income of Rs. 24,000. This return was subsequently revised on March 7, 2018. Crucially, in both these submissions, the assessee claimed a deduction of Rs. 11,23,838 under Section 80P of the Act.
