2025 (7) TMI 26 - AT - Income Tax

Denial of deduction u/s 80P - assessee who did not file return of income in time - HELD THAT - The issue involved in this appeal is squarely covered by the judgment of the Hon ble jurisdictional High Court in the case of Nileshwar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham 2023 (3) TMI 1055 - KERALA HIGH COURT wherein it has been that no deduction u/s 80(P) is available to such assessee who did not file return of income in time. Therefore we hereby dismiss this appeal of the assessee.

Summary

Summary:The appeal before the ITAT Cochin arises from the CIT(A)'s order dated 26.07.2024 for AY 2017-18 concerning a primary agricultural credit society registered under the Kerala Co-operative Societies Act, 1969. The Assessing Officer (AO) initiated scrutiny due to large cash deposits during demonetization and noted the assessee did not file a return of income despite notices under section 142(1) of the Income-tax Act, 1961. The assessee claimed exemption under section 80P(2)(a)(i), asserting no taxable income, but the AO made additions totaling Rs. 3,23,06,484.The CIT(A) upheld the additions, relying on section 80A(5), holding that the assessee was not entitled to deduction under section 80P(2) due to failure to file the return timely. The ITAT, with no representation from the assessee, relied on the jurisdictional High Court's ruling in Nileshwar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham v. CIT (2023) 459 ITR 730 (Ker.), which held that "no deduction u/s 80P is available to such assessee who did not file return of income in time." Following this precedent, the ITAT dismissed the appeal.Key holding: Timely filing of return is mandatory to claim deduction under section 80P(2); failure to do so disentitles the assessee from such deduction, as affirmed by the jurisdictional High Court and followed by the ITAT.