SSMP Sahakari Sangha Vs ITO (ITAT Bangalore)
Limitation Runs from Service, Not Mere Passing of Order: Bangalore ITAT Revives Co-operative Society’s Section 80P Appeal
Summary: The assessee, SSMP Sahakari Sangha, was a co-operative credit society registered under the Karnataka Co-operative Societies Act, 1959. It was engaged in accepting deposits, providing credit facilities to its members & making investments.
For AY 2017-18, the assessee filed its return on 17 October 2017 declaring gross income of ₹22,71,847. After claiming deduction under Chapter VI-A, principally u/s 80P, it declared nil total income.
During scrutiny proceedings, the AO noticed that the assessee had earned interest from investments maintained with BDCC Bank, other co-operative banks & nationalised banks. Relying upon the Karnataka High Court decision in Totgars Co-operative Sale Society, the AO treated the interest as income from other sources & disallowed the deduction claimed u/s 80P. The assessment was completed u/s 143(3) on 17 October 2019.
The assessee filed an appeal before the Addl./Joint CIT(A) on 11 January 2020. However, the appellate authority treated the appeal as delayed by 56 days. Finding no sufficient cause for condonation, the appeal was dismissed at the threshold without deciding the assessee’s eligibility for deduction u/s 80P.
The assessee therefore approached the Bangalore Tribunal.
