The Income Tax Appellate Tribunal (ITAT) Banglore bench ruled that the exemption under section 80 P of the Income Tax Act,1961 is allowable if it is condoned by the competent authority.
The assessee, Amasebail Vyvasaya Seva Sahakari Sangha Ltd. contended that they are entitled to deduction u/s 80P of the Act, though the assessee has not filed the return of income.
The assessee pleaded to grant an exemption under section 80P of the Income Tax Act,1961 on the income return that would be filed after condoning the delay in filing the income tax return for the assessment year 2018-19.
The Single member bench consists of Shri Chandra Poojari, accountant member who viewed that if the delay is condoned by the competent authority, the assessee is entitled to exemption u/s 80P of the Act by the law.
In light of precedents, it was evident that the Tribunal was not justified in denying exemption under section 80P of the Income-tax Act on the mere ground of belated filing of return by the assessee concerned. A return filed by the assessee beyond the period stipulated under section 139(1) or 139(4) or section 142(1) or section 148 can also be accepted and acted upon provided further proceedings about such assessments are pending in the statutory hierarchy of adjudication in terms of the provisions of the Income-tax Act.
The Tribunal remitted the issue to the file of AO to examine whether the application filed by the assessee on 30.11.2018 before PCIT, Central Revenue Building, Attavara, Bengaluru for condoning the delay in filing the return of income for the assessment year 2018-19.
The appeal of the assessee was partly allowed for statistical purposes. The Appellant was represented by Shri Mahesh R. Uppin and the Respondent was represented by Shri Ganesh R. Ghale.
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