Tuticorin Agricultural Producers Co-Op Marketing Society Limited Vs CIT (Appeals) (ITAT Chennai)
The ITAT Chennai considered an appeal filed by a co-operative society against the order of the Commissioner of Income Tax (Appeals), NFAC, for Assessment Year 2020-21. The assessee, registered under the Tamil Nadu Cooperative Societies Act, 1983, had initially not filed its return of income for the relevant assessment year. Based on information received through the insight portal regarding sales reported in GSTR-3B amounting to Rs.11.04 crore, substantial cash deposits in cooperative and SBI bank accounts, and cash withdrawals, proceedings under Section 148A(d) of the Income Tax Act were initiated. Subsequently, notice under Section 148 was issued on 20.02.2024 reopening the assessment.
In response to the notice, the assessee filed its return of income on 20.05.2024 declaring total income of Rs.13,534 after claiming deduction of Rs.41,98,465 under Section 80P(2)(a)(i) of the Act. However, since the return had not originally been filed under Section 139 of the Act, the Assessing Officer denied the deduction claimed under Section 80P. The assessment completed under Sections 147 read with 144B was upheld by the First Appellate Authority.
Before the Tribunal, the assessee submitted that it had already filed a condonation petition dated 17.01.2025 before the Chief Commissioner of Income Tax under Section 119(2)(b) seeking condonation of delay in filing the return under Section 139(1). The assessee argued that the outcome of the condonation application had a direct bearing on the allowability of deduction under Section 80P and therefore requested restoration of the matter to the Assessing Officer pending decision of the competent authority.
