9911796707
TMI Blog2024 (8) TMI 1170X X X X Extracts X X X X X X X X Extracts X X X X ..... 2017-18. 2. Briefly stated the relevant facts of the case are that the assessee is a Primary Agricultural Cooperative Credit Society Limited. As per the information available with the Department, the assessee has deposited cash of Rs. 8,69,688/- on 08/11/2016 in its account held with Krishna District Central Co-operative Bank, Gampalagudem Branch during the demonetization period. The Ld. AO during the assessment proceedings observed that the assessee did not file its return of income before the due date u/s. 139(1) of the Act and therefore a notice u/s. 142(1) of the Act calling for return of income was issued on 07/03/2018 and the same was served on the assessee on 16/03/2018. However, the assessee has not complied with the notice and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he AY 2017-18. The Ld. AO also initiated the penalty proceedings u/s. 270A & u/s. 271F of the Act since the assessee has filed the return of income as per the provisions of section 139 of the Act and made erroneous claim of deduction u/s. 80P of the Act. Thus, the Ld. AO determined the assessed income of the assessee at Rs. 27,47,952/- and made disallowance of deduction u/s. 80P of the Act amounting to Rs. 27,47,952/- and passed the assessment order u/s. 144 of the Act dated 26/12/2019. Aggrieved by the order of the Ld. AO, the assessee preferred an appeal before the Ld. CIT(A)-NFAC. 3. On appeal, the Ld. CIT(A)-NFAC, considering the submissions and of the assessee and after discussing the relevant provisions of the Act, observed that "the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is rightly entitled f or the cl aim u/s. 80P(2)(a)(i) u/s. 80P(2)(a)(iv). 3. The Ld. C IT (A), NFAC disallowed the claim u/s. 80P(2)(a)(i) of the Act by erroneously applying the provisions of section 80A(5) of the Act which do not apply to the case of the assessee society. Instead, the Ld. C IT (A) ought to have examined the case from the perspective of Sec. 80AC of the Act as it stood at the relevant time. 4. The reliance pl aced by the Ld. C IT(A), while confirming the disallowance u/s. 80P(2)(a)(i) of the Act on certain legal decisions these are distinguishable since the f acts are different in those cases. 5. For these and other reasons that are to be urged at the time of hearing the case the Hon'ble IT AT may delete the additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ie., AY 2017-18 as in the case of the assessee. Therefore, the assessee is entitled to claim deduction u/s. 80P(2)(a)(i) of the Act. The Ld. AR relied on the decision of the Mumbai Tribunal in ITA No. 1613/Mum/2021 (AY 2017-18), dated 05/09/2022 in the case of Saidatar Co-operative Credit Society Ltd vs. ITO, Ward-32(1)(1), Mumbai. 5. Per contra, the Ld. DR submitted that the assessee has not filed a valid return of income in accordance with the provisions of section 139(1) or 139(4) of the Act in order to claim deduction u/s. 80P of the Act. The Ld. DR further submitted that as per section 80A(5) of the Act when no valid return of income is filed, the assessee has failed to make a claim of deduction u/s. 80P(2)(a)(i) of the Act, and ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled to file its valid return of income within the prescribed time for the relevant assessment year claiming the deduction prima facie no deduction is permissible under the Act. Similarly, the assessee has not filed its valid return of income either u/s. 139(1) or u/s. 139(4) of the Act as observed by the Ld. AO as well as Ld. CIT(A)-NFAC and therefore, the Ld. AO held that the assessee failed to make the claim of deduction u/s. 80P(2)(a)(i) of the Act. I cannot appreciate the argument of the Ld. AR that the provisions of section 80AC are not applicable to the case of the assessee as the substitution came into effect from 01/04/2018 ie., for the AY 2018-19 onwards because even after the substitution by Finance Act, 2018, to claim the deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessee to make a claim in its return of income for any deduction under any provisions of the Chapter under the heading "C-deduction in respect of certain incomes". Since the assessee has failed to file its return of income claiming the deduction prima facie no deduction is permissible under the Act. Similarly, the assessee has filed return of income manually on 5/3/2022 which was sent by speed post to CPC, Bangalore on 15/3/2022. It is noticed from the submissions made by the Ld.AR that the return has been filed u/s. 139(4) of the Act. As per section 139(4) of the Act "Any person who has not furnished a return within the time allowed to him under sub-section (1), may furnish the return for any previous year at any time before thre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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