Kassia Credit Co-operative Society Ltd. Vs DCIT (ITAT Bangalore)
The Income Tax Appellate Tribunal (ITAT), Bangalore, dismissed the appeal filed by the assessee against the order of the Commissioner of Income Tax (Appeals) [NFAC], which had upheld the disallowance of deduction claimed under Section 80P of the Income-tax Act, 1961 for Assessment Year (AY) 2018-19.
The assessee had not filed its return of income under Section 139(1) of the Act for AY 2018-19. Based on information regarding cash deposits and interest earned on securities, the Assessing Officer (AO) issued a show cause notice under Section 148A(b) on 14.03.2022. After considering the assessee’s reply, the AO passed an order under Section 148A(d) and issued a notice under Section 148 on 31.03.2022 after obtaining the required approval.
In response to the notice under Section 148, the assessee filed its return of income on 29.04.2022 declaring total income of ₹5,14,250 after claiming deduction of ₹83,89,567 under Section 80P. During the reassessment proceedings, notices under Sections 142(1) and 143(2) were issued and replies were furnished by the assessee. After considering the submissions, the AO held that since the assessee had failed to file its return within the due date prescribed under Section 139(1), the deduction claimed under Section 80P could not be allowed. Accordingly, the AO disallowed the deduction of ₹83,89,567.
