Primary Agricultural Coperative Credit Society Vs ITO (ITAT Hyderabad)
Hyderabad ITAT: Belated Return No Bar to Section 80P Deduction Once Delay Is Condoned u/s 119(2)(b)
The Hyderabad ITAT in Primary Agricultural Cooperative Credit Society v. ITO, ITA No.1180/Hyd/2024, AY 2022-23 dealt with denial of Section 80P deduction of ₹53.82 lakh to a Primary Agricultural Cooperative Credit Society engaged in providing finance to its farmer-members and facilitating sale of seeds and tools.
The Society had filed its return declaring Nil income after claiming deduction of ₹53,82,057 under Section 80P. However, CPC denied the deduction under Section 143(1) because the return was filed on 30/31 December 2022, beyond the extended due date of 7 November 2022. The appellate authority also did not grant relief.
During the pendency of the matter, the Society approached the Chief Commissioner of Income Tax, Hyderabad under Section 119(2)(b) seeking condonation of the delay in filing the return. By order dated 29 July 2026, the Chief Commissioner condoned the delay specifically for enabling the Society to claim deduction under Section 80P.
In view of this subsequent development, the ITAT held that the original basis for denying the Section 80P deduction-belated filing of the return-could no longer stand in the way once the competent authority had condoned the delay under Section 119(2)(b).
The Tribunal accordingly directed the AO to give effect to the Chief Commissioner’s condonation order and grant the Section 80P deduction after carrying out necessary verification in accordance with law. The matter was restored to the AO to re-decide the claim accordingly.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
