Nellikkaparamba Agricultural and Workers Welfare Co-op. Society Ltd Vs ITO (ITAT Cochin)
The case of Nellikkaparamba Agricultural and Workers Welfare Co-op. Society Ltd vs. ITO addresses a dispute regarding the timely filing of an income tax return and the subsequent eligibility for a deduction under Section 80P of the Income Tax Act, 1961. The appellant, Nellikkaparamba Agricultural and Workers Welfare Co-op. Society Ltd., is a cooperative society registered under the Kerala State Co-operative Societies Act, 1969.
Background
For the Assessment Year (AY) 2018-19, the society filed its tax return on September 24, 2018, declaring a nil income after claiming a deduction of Rs. 7,22,972 under Section 80P of the Act. The Centralised Processing Centre (CPC) processed the return under Section 143(1) and, in an intimation dated August 9, 2019, denied the Section 80P deduction. The reason cited for the denial was that the return of income was filed belatedly, meaning after the original due date.
Aggrieved by this disallowance, the society filed a rectification application under Section 154 on June 9, 2020. However, this application was disposed of on July 11, 2020, with the disallowance of the Section 80P(2)(a)(1) deduction being confirmed. The society then appealed to the Commissioner of Income Tax (Appeals), or CIT(A), who upheld the Assessing Officer’s (AO) decision. The cooperative society then escalated the matter to the Income Tax Appellate Tribunal (ITAT) Cochin.
