Shantadurga Multi Purpose Souharda Sahakari Niyamit Vs National e-Assessment Centre (ITAT Panaji)
ITAT Panaji: Deduction u/s 80P Allowed – Sec.80AC Not Applicable to Co-op Societies Prior to AY 2018-19
Panaji Tribunal has held that provisions of section 80AC, which mandate timely filing of return u/s 139(1) as a precondition for claiming deduction, are applicable to cooperative societies only from AY 2018-19 onwards. Therefore, deduction u/s 80P cannot be denied to a society for earlier years merely on the ground of belated filing.
Assessee, a cooperative society providing credit facilities to members, had not filed return of income u/s 139(1). Based on data analytics, AO noticed substantial cash deposits & reopened assessment u/s 147. In response, Assessee filed return declaring nil income after claiming deduction of ₹1,96,851 u/s 80P. AO, however, denied deduction applying section 80AC & assessed the income. CIT(A) confirmed the denial.
On further appeal, Tribunal noted that section 80AC was extended to cover deductions u/s 80P only with effect from AY 2018-19. For AYs 2015-16 & 2016-17, the assessee could validly claim deduction even if the return was filed after due date but in response to notice u/s 142(1) or 148. Reliance was placed on coordinate bench decisions in Prathamika Krishi Patina Sahakara Sangha Ltd. (Bangalore ITAT, 2022) & Omkar Urban Cooperative Credit Society Ltd. Vs. ITO (Panaji ITAT, 2022), where similar claims were allowed.
