Co-operative Society Not Eligible to Claim 80P Deduction If Income Tax Return was not filed within Due Date: ITAT [Read Order]

The Pune bench of Income Tax Appellate Tribunal (ITAT) has recently held that if income tax return was not filed within due date the co-operative society was not eligible for claiming deduction under section 80P of Income Tax Act 1961.

 Section 80P of Income Tax Ac, 1961 offers tax deduction to cooperative societies and as per the section the gross total income of the such society who are engaged in the business of agriculture, cotton industry, banking business etc, shall be deducted .

Assessee Kolhapur Udyam Co-op. Society Ltd registered Co-operative Society under the provisions of the Maharashtra Co-operative Societies Act, 1960. The assessee is engaged in the activity of supply of raw materials and industrial sheds to members. The assessee is assessed to tax in the status of an Association of Persons (AOP).After filing the return assessee case was selected for scrutiny and completed the assessment proceedings and assessing officer framed assessment order denying the claim of deduction under section 80P (2)(d) of the Income Tax Act 1961 to the extent of Rs. 47,02,407/-.Against the order assesee filed an appeal before the National Faceless Appeal Centre (NFAC).

NFAC while considering the appeal of the assessee observed that “assessee had failed to fulfill the conditions precedent that is  filing of return of income within due date stipulated under section  139(1) of the Income Tax Act 1961 that is on or before 30-9-2018 for the purposes of claiming deduction under section  80P(2)(d) of the Income Tax Act 1961”.

But the Ramnath P. Murkunde appeared for the revenue content that “NFAC has not considered or adjudicated the issue on merits in this case. The NFAC on legal issue has dismissed the appeal of the assessee. Therefore, the matter may be remanded back to the file of the NFAC for fresh adjudication on merits also”.

After considering the contentions of the both side the division bench of the ITAT comprising Partha Sarathi Chaudhury, (Judicial Member) and   Inturi Rama Rao, (Accountant Member) denied the above  ground of appeal  filed by the assessee and observed that,

assessee had failed to fulfill the conditions precedent for the purposes of claiming deduction under section  80P(2)(d) of the Income Tax Act 1961.Therefore, in terms of section 80AC(ii) of the Income Tax Act 1961, theassessee was not entitled to claim deduction under section  80P of the Income Tax Act 1961 as well.

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