Awaiting CCIT order on Delayed ITR Condonation Petition: ITAT Remands on 80P Deduction Disallowance Matter [Read Order]
Observing that the CIT(A) was not justified in dismissing the assessee's appeal while a condonation petition for delayed filing of the Income Tax Return (ITR) was pending before the CCIT, the Tribunal deemed it proper to remand the matter for fresh adjudication.
The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) remitted the issue regarding the disallowance of the Section 80P deduction back to the file of the Commissioner of Income Tax (Appeals) [CIT(A)] for fresh consideration due to the Chief Commissioner of Income Tax (CCIT) order on delayed filing of the Income Tax Return (ITR) was pending.
The case originated with KK 168 Naripalli Primary Agri. Co-operative Society Limited (assessee) for the Assessment Year (AY) 2022-23. The only issue for consideration was whether the CIT(A) was justified in confirming the disallowance of the exemption claimed under section 80P of the Income Tax Act, 1961.
The CIT(A) confirmed the disallowance of the deduction claimed under Section 80P because the assessee had not filed the return of income within the due date prescribed under the Act.
The assessee, a Primary Agricultural Cooperative Society registered under the Tamil Nadu Cooperative Society Act 1983, was under an obligation to have its books of accounts audited by the statutory auditor, the Tamil Nadu Co-operative Department.
The assessee's counsel submitted that the audit reports for AY 2021-22 were completed belatedly, and due to the delay in non-completion of the Cooperative audit, the assessee was not able to file income tax returns on or before 07.11.2022.
The assessee filed a condonation petition under section 119(2)(b) of the Act for condoning the delay in filing the return of income, which is pending before the CCIT, Coimbatore.
The two-member bench, comprising S.S. Viswanethra Ravi (Judicial Member) and Ratnesh Nandan Sahay (Accountant Member), observed that the CIT(A) was not justified in dismissing the appeal of the assessee pending the decision of the CCIT on the condonation petition.
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The bench deemed it proper to remand the matter by relying upon the Tribunal’s order in the case of AA520 Veerappampalayam PACS v. ITO , and considering the identical facts.
The Tribunal directed the CIT(A) to decide the issue on merits, taking into account the order of the CCIT on the delay condonation petition filed under section 119(2)(b) of the Act. In the result, the appeal filed by the assessee was allowed for statistical purposes.
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