Primary Agricultural Credit Co-Operative Society Ltd. Vs ITO (ITAT Bangalore)
Bangalore ITAT: Section 80P Deduction Not Available on Return Filed in Response to Section 148 if Original Return Was Not Filed in Time
The Bangalore ITAT held that a Primary Agricultural Credit Co-operative Society was not entitled to deduction u/s 80P(2)(a)(i) where it had failed to file its original return u/s 139(1) and claimed the deduction only in the return filed pursuant to a notice u/s 148. The Tribunal upheld the action of the Assessing Officer in invoking section 80AC, observing that the assessee had also not sought condonation of delay by filing an application u/s 119(2)(b) before the CBDT. Accordingly, the denial of the deduction under section 80P was sustained.
The Tribunal, however, accepted the assessee’s alternative contention that if the income had been assessed as “Income from Other Sources” under section 56, the assessee would be entitled to the corresponding deduction permissible under section 57. Since the assessment order did not clearly indicate the head under which the income had been assessed, the ITAT remanded the matter to the Assessing Officer for this limited purpose. It directed that if the income is assessed u/s 56, the deductions admissible u/s 57 must necessarily be granted. The appeal was partly allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This is an appeal filed by the assessee challenging the order of the NFAC, Delhi dated 05/03/2026 in respect of the A.Y. 2019-20.
