Presidential Plaza Co-op Premises Society Limited Vs ITO (ITAT Mumbai)
The appeal before the Income Tax Appellate Tribunal (ITAT), Mumbai, arose from an order dated 29 February 2024 passed by the Commissioner of Income Tax (Appeals), who had dismissed the assessee’s appeal for Assessment Year 2013-14 on the ground of a delay of approximately nine years and declined to condone the delay.
The assessee, a co-operative society registered under the Maharashtra Co-operative Societies Act, 1960, had filed its return declaring income of ₹6,94,120 after claiming deduction under Section 80P amounting to ₹4,91,671. The deduction was disallowed while processing the return under Section 143(1) on the ground that the return had not been filed within the prescribed time. As a result, the assessed income was increased and a tax demand was raised.
Before the CIT(A), the assessee challenged the disallowance of deduction under Section 80P and contended that the due date for filing the return was 30 September because the accounts of co-operative societies were subject to statutory audit. The assessee also argued that the adjustment had been made without issuing notice under Section 143(1)(a) and challenged the resulting demand.
During the proceedings before the Tribunal, the Departmental Representative produced a rectification order dated 22 October 2024 passed under Section 154. The rectification order recorded that the assessee had filed a rectification application on 5 January 2015 stating that the demand raised in the intimation under Section 143(1) was erroneous because deduction under Section 80P(2)(d) had not been granted. Upon examination, the authority found the contention to be correct and observed that the demand had arisen due to non-credit of the deduction claimed by the assessee. Treating the issue as a mistake apparent from the record, the authority rectified the assessment and restored the assessed income to ₹6,94,120.
