Assessee Co-Operative Society Governed by Due Date of Filing Return as per Maharashtra Co-Operative Society Act: ITAT allows Deduction u/s. 80P of Income Tax Act [Read Order]

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has allowed the deduction under Section 80P of the Income Tax Act ,1961 holding that the assessee co-operative society would be governed by the due date of filing return as per Maharashtra Co-Operative Society Act.

The Assessee, Nutan Laxmi Co-Operative Housing Society Ltd had declared its income after claiming deductions under Section 80P(2)(c) and 80P (2)(d) of the Income Tax Act, by filing its return of income on dated 18th Sep, 2018, which was selected for scrutiny under CASS on the issues “Deduction from total income under chapter VI-A and Claim of any other amount allowable as deduction in scheduled BP”.

The AO by issuing statutory notices asked the Assessee to provide certain information, in response to which, the Assessee by filling its replies claimed that it was Co-Operative Housing Society of plot holders and having main source of income from interest received from bank deposits, contribution from its members and transfer of plot and lease rent etc. The Assessee further claimed that it had claimed income as deduction under chapter VI-A of the Act.

The Assessee in response to the said query submitted that the out of total income he claimed as deduction under Section 80P(2)(c) of the Income Tax Act as a deduction u/s. 80P(2)(d) of the Act.

The Assessing Officer though considered the claim of the Assessee, however found the same was not acceptable and ultimately disallowed the said amount.

Shalin S Divatia appeared on behalf of the assessee and Suresh Gaikwas appeared on behalf of the revenue.

The two-member Bench of Prashant Maharishi, (Accountant Member) and N. K. Choudhry, (Judicial Member) allowed the appeal filed by the assessee noting that the department claimed that the last date for filing of income tax return in this case was 31st Aug, 2018, whereas the Assessee had claimed the same was 31st Oct, 2018 under Section 139(1) of the Income Tax Act.

The Bench further observed that in case of person whose accounts were required to the audited under this Act or under any other law for the time being in force, as per Explanation-2 (a)(ii) of Section 139(1) of the Income Tax Act, the due date for filing of income tax return was 30th September, however the said due date of 30th September, had subsequently been substituted with 31st October vide finance Act 2020 with effect from 1st April, 2020.

Other than this the Bench observed that the assessee being a Co-Operative Housing Society governed by Maharashtra Co-Operative Society Act 1960 required to be audited under Maharashtra State Co-Operative Act and therefore was liable to file its return of income up to 30-09- 2018 and hence the Assessee filed on 18-09-2018, which has shown that the Assessee had filed its return of income before the due date.

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