TMI Blog2023 (6) TMI 1277X X X X Extracts X X X X X X X X Extracts X X X X ..... ards disallowance of deduction claimed u/s. 80P(2)(a)(i) and thus, we are inclined to uphold the findings of the ld. CIT(A) and dismiss appeals filed by the revenue. - ITA Nos.: 592, 593 & 594/Chny/2023 And CO Nos: 23, 24 & 25/Chny/2023 - - - Dated:- 28-6-2023 - Shri V. Durga Rao, Hon ble Judicial Member And Shri Manjunatha. G, Hon ble Accountant Member For the Appellant : Shri. AR V Sreenivasan, Addl. CIT For the Cross Objector : Shri. R. Kumar, Advocate ORDER PER MANJUNATHA. G, ACCOUNTANT MEMBER: These three appeals filed by the revenue and cross objections filed by the assessee are directed against, separate but identical orders of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee is a cooperative society engaged in the business of providing credit facility to its members. The assessee has not filed its return of income for the assessment years 2012-13, 2014-15 2017-18 u/s. 139 of the Income-tax Act, 1961 (hereinafter referred to as the Act ). Therefore, the assessment has been re-opened u/s. 147 of the Act and notice u/s. 148 of the Act, dated 13.03.2019 was issued and served on the assessee. In response to 148 notice, the assessee has filed its return of income for the assessment years 2012-13, 2014-15 2017-18 on 26.03.2019 and declared Nil total income, after claiming deduction u/s. 80P(2)(a)(i) of the Act. The assessment has been completed u/s. 143(3) r.w.s. 147 of the Act on 09.12.2019 where, the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le for deduction u/s. 80P(2)(d) of the Act. The ld. DR, further relied on the decision of Hon ble Supreme Court in the case of CIT vs Sun Engineering Works Pvt Ltd [1992] 198 ITR 297, submits that in reassessment proceedings, the assessee cannot claim any new benefits or fresh claims, because the reopening of assessment is in the benefits of the revenue. Therefore, he submitted that the CIT(A) erred in allowing relief to the assessee and their order should be reversed. 8. The Ld. Counsel for the assessee, on the other hand submits that the assessee s case is fully covered in favour of the assessee by the decision of ITAT, Chennai Benches in assessee s own case in ITA No. 3047/Chny/2019 for assessment year 2013-14, where the Tribunal has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nless such deduction is claimed in the return of income. We have gone through the provisions of Section 80P read with Section 80A(5) of the Act and found that nowhere in Section 80P or in Section 80A(5) of the Act it is mentioned that the assessee is required to file its return of income within the prescribed time provided u/s. 139(1) or 139(4) of the Act. But, what is required to be seen is whether the assessee has made a claim in the return of income filed for the relevant year or not, even though such return is not filed within due date. In this case, the assessee although not filed its return of income for the impugned assessment year u/s. 139 of the Act but such return of income has been filed in response to the notice issued u/s. 148 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duction u/s. 80P(2)(a)(i) of the Act. The AO has taken support from the decision of the Hon ble Supreme Court in the case of M/s. Totagars Co-operative Sales Society Ltd., supra. We have gone through the findings recorded by the AO in the light of the decision of the Hon ble Supreme Court in the said case and find that the fact of the case before the Hon ble Supreme Court is entirely different from the facts of the present case. In the case before the Hon ble Supreme Court, the assessee was a co-operative sales society which is engaged in the business of trading in agricultural produce for its members and during the course of its business it has parked surplus funds in other co-operative banks / nationalized banks and earned interest. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o-operative banks but credit co-operative societies are entitled to claim deduction u/s. 80P of the Act in respect of interest income earned from deposits kept in other co-operative banks. 10. In this view of the matter and considering facts and circumstances of the case, we are of the considered view that the ld.CIT(A) was right in allowing the benefit of deduction claimed u/s. 80P of the Act in respect of income derived from the activity including interest income earned from fixed deposits. We do not find any error or infirmity in the order of the CIT(A). Hence, we are inclined to uphold the order of the CIT(A) and dismiss the appeal filed by the Revenue. 10. In this view of the matter and consistent with view taken by the coord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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