Rani Channamma Co-operative Credit Society Ltd Vs ITO (ITAT Bangalore)
The Income Tax Appellate Tribunal (ITAT) in Bengaluru has remanded the case of Rani Channamma Co-operative Credit Society Ltd. back to the Commissioner of Income Tax (Appeals) [CIT(A)] for a fresh adjudication. The tribunal found that the CIT(A) had inadvertently ruled on an appeal against a rectification order under Section 154 of the Income Tax Act, 1961, instead of the original appeal against an intimation under Section 143(1) of the Act.
The dispute arose when the co-operative society filed its tax return for the assessment year 2019-20 after the statutory deadline. Despite the late filing, the society claimed a deduction of Rs. 5,07,058 under Section 80P of the Act, a provision intended to support co-operative societies. When the return was processed by the Centralised Processing Centre (CPC), the deduction was disallowed. The CPC cited a violation of Section 80AC, which stipulates that deductions under certain sections, including 80P, can only be claimed if the return is filed within the due date specified under Section 139.
Following the disallowance, the society sought a rectification of the order under Section 154, which was also dismissed by the CPC. The society then filed an appeal with the CIT(A) against the initial intimation order issued under Section 143(1).
