Condonation Petition For Delay in Filing ITR Pending: ITAT Remands S.80P Denial Matter of Co-operative Society [Read Order]
The Tribunal observed that the CIT(A) erred in dismissing the appeal without awaiting the decision on the assessee's condonation petition for delay in filing the return, which was pending before the CCIT, Coimbatore.
![Condonation Petition For Delay in Filing ITR Pending: ITAT Remands S.80P Denial Matter of Co-operative Society [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/05/ITR-Filing.jpg "Condonation Petition For Delay in Filing ITR Pending: ITAT Remands S.80P Denial Matter of Co-operative Society [Read Order]")
The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has remanded section 80P denial matter of cooperative society to the Commissioner of Income Tax (Appeals) [CIT(A)] for fresh adjudication citing the pendency of condonation petition for delay in filing Income Tax Return (ITR). Veerappampalayam Primary Agricultural Co-operative Society Ltd., (assessee) filed return of income for...
The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has remanded section 80P denial matter of cooperative society to the Commissioner of Income Tax (Appeals) [CIT(A)] for fresh adjudication citing the pendency of condonation petition for delay in filing Income Tax Return (ITR).
Veerappampalayam Primary Agricultural Co-operative Society Ltd., (assessee) filed return of income for the Assessment Year (AY) 2018-19 declaring a total income of Nil. The society claimed deductions under Sections 80P(2)(a)(i) and 80P(2)(d) of the Income Tax Act.
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The Assessing Officer (AO) disallowed these deductions in the assessment order citing that the return was not filed within the prescribed due date. The AO further held that the assessee was ineligible for the deduction under Section 80P(2)(d) as the interest income was derived from deposits in a co-operative bank, not a co-operative society.
Aggrieved by the AO’s order, the assessee appealed to the CIT(A), who upheld the AO’s decision, confirming the disallowance of the Section 80P deductions. The CIT(A) held that the late filing of the return and the lack of mutuality in earning the income.
Aggrieved by the CIT(A)’s order, the assessee filed an appeal before ITAT. The counsel for the assessee submitted that the society had filed a condonation petition under Section 119(2)(b) of the Act for the delay in filing the ITR, which was pending before the Chief Commissioner of Income Tax (CCIT), Coimbatore.
The counsel argued that the CIT(A) dismissed the appeal without considering the pending condonation petition. The assessee relied on the jurisdictional High Court’s decision in CIT v. Salem Agriculture Producers Co-operative Marketing Society Ltd. to support the claim for deduction under Section 80P(2)(d) of the Income Tax Act.
The two-member bench, comprising SS Viswanethra Ravi (Judicial Member) and Jagadish (Accountant Member), observed that the CIT(A) had confirmed the disallowance primarily due to the late filing of the return.
The tribunal observed the fact that the condonation petition filed on 20.03.2024 was still pending before the CCIT. The Tribunal held that the CIT(A)’s dismissal of the appeal without awaiting the CCIT’s decision was unjustified.
The tribunal set aside the CIT(A)’s order and remanded the matter back to the CIT(A) with directions to decide the appeal after the CCIT’s ruling on the condonation petition. The tribunal directed the CIT(A) to consider the High Court’s decision in CIT v. Salem Agriculture Producers Co-operative Marketing Society Ltd. for deciding the claim under Section 80P(2)(d) of the Income Tax Act. The appeal of the assessee was allowed for statistical purposes.
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