Prathamika Krishi Pattina Sahakara Sangha Ltd. Vs ITO (ITAT Bangalore)
The Income Tax Appellate Tribunal (ITAT), Bangalore, in the case of Prathamika Krishi Pattina Sahakara Sangha Ltd. Vs ITO, addressed the disallowance of a deduction claimed under Section 80P of the Income Tax Act, 1961, for the assessment year 2017–18. The central issue revolved around the consequences of a co-operative society failing to file its income tax return within the due date prescribed by Section 139(1) of the Act.
The assessee, Prathamika Krishi Pattina Sahakara Sangha Ltd., a co-operative society, had claimed a deduction of ₹9,86,986.00 under Section 80P(2)(a)(i). However, the Assessing Officer (AO) denied this deduction in its entirety, citing the provisions of Section 80AC, which mandates timely filing of returns for claiming certain deductions, including those under Section 80P. This denial was subsequently upheld by the Commissioner of Income Tax (Appeals), or CIT(A).
Upon appeal to the ITAT, the assessee’s counsel conceded that the deduction under Section 80P could indeed be denied due to the late filing of the return. This admission was supported by a judicial precedent involving the same assessee. The ITAT, in its order dated October 17, 2024 (ITA No. 1344/Bang/2024), had already confirmed the disallowance of the Section 80P deduction for the assessment year 2018–19 for the exact same reason—failure to file the return within the stipulated time.
