TMI Blog2023 (1) TMI 893X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to audit under Cooperative Society Act and mentioned the date of audit in the return of income filed by the assessee. If it is so, the assessee could avail the benefit of circular issued by CBDT cited supra and the assessee has to be granted with the deduction under Section 80P(2)((i)(a). As discussed earlier in the present case assessee has filed return of income on 31.10.2018, which is within the extended time limit in the case of the present assessee whose books are to required to be audited under the relevant Co-operative Societies Act and Explanation 2(ii) of Section 139(1) of the Act is applicable to the assessee s case. We find no force in the argument of the learned D.R. Accordingly, direct the AO to grant deduction claimed by the assessee under Section 80P(2)(i)(a) of the Act if the assessee establish that it has disclosed the fact that assessee is liable to audit under Cooperatives Societies Act and mentioned the date of furnishing audit report in the return of income filed by the assessee on 31.10.2018 for the impugned AY 2018-19. Accordingly the issue in dispute is remitted to the file of AO for fresh consideration in the light of above observations - Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laimed deduction u/s. 80P (2)(a)(i) of the Act, in respect of income from co-operative society engaged in carrying business of banking by providing credit facilities to its members. The Appellant has filed its Return of income on 31.10.2018, whereas the due date for filing original Return was 31.08.2018. The AO denied the exemption claimed u/s. 80P(2)(a)(i) of the Act, due to late filing of Return of Income. The Appellant has submitted that the Appellant presumed that its case is covered under tax audit cases, hence, the delay in filing Return of income. In the 2018 Budget amendment, to have one principle in respect of certain incomes, it was proposed that the scope of Sec. 80AC shall be extended to all similar deductions which are covered in heading C - Deduction in respect of certain incomes in Chapter VIA. After this amendment, deduction will be available only if return is filed on or before the due date. Deduction u/s. 80P is also covered under the heading C - Deduction in respect of certain incomes Thus, in respect of deduction u/s. 80P of the Act, the same is not allowable, if the Income Tax Return is not filed within the time permitted u/s. 139(1) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , being 30th September, 2018, for filing of income-tax returns and various reports of audit pertaining to assessment-year 2018-19 for assessees covered under clause (a) of Explanation 2 to section 139(1) of the Income-tax Act, 1961 (Act) read with relevant pThvisions of the Act g Income-tax Rules, the CBDT, hereby extends the due date for filing of income-tax returns as well as all reports of audit (which were required to be filed by the said specified date), from 30th September, 2018 to 15th October, 2018. However, there shall be no extension of the due date for purpose of Explanation 1 to section 234A (Interest for defaults in furnishing return) of the Act and the assessee shall remain liable for payment of interest as per provisions of section 234A of the Act. F.No. 225/358/2018/17AM Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes North-Block, ITA.II Division New Delhi, the 8th of October, 2018 Order under Section 119 of the income -tax Act,1961 On consideration of representations from various stakeholders for further extension of due date being 3V1 September, 2018 for purpose of filing return of income as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous year incurs an expenditure of fifty thousand rupees or more towards consumption of electricity or at any time during the previous year fulfils any one of the following conditions, namely :- (i) is in occupation of an immovable property exceeding a specified floor area, whether by way of ownership, tenancy or otherwise, as may be specified by the Board in this behalf; or (ii) is the owner or the lessee of a motor vehicle other than a two-wheeled motor vehicle, whether having any detachable side car having extra wheel attached to such two-wheeled motor vehicle or not; or (iii) [***] (iv) has incurred expenditure for himself or any other person on travel to any foreign country; or (v) is the holder of a credit card, not being an add-on card, issued by any bank or institution; or (vi) is a member of a club where entrance fee charged is twenty-five thousand rupees or more, shall furnish a return, of his income during any previous year ending before the 1st day of April, 2005, on or before the due date in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed : Provided further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may be prescribed: Provided also that a person referred to in clause (b), who is not required to furnish a return under this sub-section, and who during the previous year- (i) has deposited an amount or aggregate of the amounts exceeding one crore rupees in one or more current accounts maintained with a banking company or a co-operative bank; or (ii) has incurred expenditure of an amount or aggregate of the amounts exceeding two lakh rupees for himself or any other person for travel to a foreign country; or (iii) has incurred expenditure of an amount or aggregate of the amounts exceeding one lakh rupees towards consumption of electricity; or (iv) fulfils such other conditions as may be prescribed, shall furnish a return of his income on or before the due date in such form and verified in such manner and setting forth such other particulars, as may be prescribed. Explanation 1.-For the purposes of this sub-section, the expression motor vehicle shall have the meaning assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988). Explanation 2.-In this sub-section, due date means,- (a) where the assessee othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prepare a list of auditors and auditing firms who satisfy, the prescribed qualification and experience for undertaking the audit of accounts of State Co-operative Bank and District Central Co-operative Banks.] 9. A conjoint reading of Section 139(1) of the Act read with the Explanation 2(ii) of the section and Section 63 of the Karnataka Co-Operative Societies Act, 1959 makes it clear that the assessee s books are required to be audited under the Co-Operative Societies Act, the extended time is available to the assessee upto 31.10.2018 to the file the return of income for the AY 2018- 19. Admittedly in the present case the assessee filed the return of income on 31.10.2018. The assessee cannot be denied deduction under Section 80P(2)(a)(i) of the Act if the assessee filed the return of income on or before 31.10.2018 and the same has been disclosed in the return of income as required in ITR-5 stating that assessee is liable to audit under Cooperative Society Act and mentioned the date of audit in the return of income filed by the assessee. If it is so, the assessee could avail the benefit of circular issued by CBDT cited supra and the assessee has to be granted with the deductio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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