Case Law Details
Uttam Dairy Staff Co-operative Credit & Supply Society Limited Vs AO (ITAT Ahmedabad)
Introduction: The case of Uttam Dairy Staff Co-operative Credit & Supply Society Limited vs. AO (ITAT Ahmedabad) revolves around the denial of Income Tax deduction under Section 80P due to the delayed submission of the audit report by the Government Auditor. The Income Tax Appellate Tribunal (ITAT) upheld the taxpayer’s claim for deduction despite the delay.
1. Background of the Case Uttam Dairy Staff Co-operative Credit & Supply Society Limited, the assessee, filed its income tax return for the Assessment Year 2020-21 on 31st March 2021, which was beyond the extended due date of 15th February 2021. The assessee claimed a deduction under Section 80P of the Income Tax Act, 1961, amounting to Rs. 4,18,340. The CPC (Central Processing Centre) denied the deduction under Section 80P, resulting in a tax demand of Rs. 1,61,860.
Denial of Deduction Both the Assessing Officer and the CIT(A) denied the deduction claimed by the assessee under Section 80P(2)(b) of the Act due to the late filing of the return. The delay was attributed to the fact that the Government Auditor submitted the audit report late. The assessee contended that the delay was due to reasons beyond its control, and it was entitled to the deduction.
Reasons for Delay The delay in filing the return was primarily due to the Government Auditor’s delayed submission of the audit report. The assessee argued that it had reasonable cause for the late submission, considering the prevailing pandemic guidelines from the Hon’ble Apex Court.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
