Section 80P deduction denied for late return filing where section 80A(5) makes timely filing mandatory.

Deduction under section 80P(2)(a)(i) is unavailable where the assessee fails to furnish the return of income within the prescribed time, because section 80A(5) bars allowance of such deduction unless the return is filed within time. The claim was tested against binding jurisdictional precedent and the statutory return-filing condition was held mandatory. On that basis, the co-operative society was not entitled to the deduction.

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Issues: Whether the assessee, a co-operative society, was entitled to deduction under section 80P(2)(a)(i) of the Income-tax Act, 1961 despite not filing the return of income within the prescribed time, in view of section 80A(5) of the Income-tax Act, 1961.

Analysis: The assessment record showed non-filing of the return despite notices under section 142(1) of the Income-tax Act, 1961. The claim for deduction under section 80P was examined in the light of section 80A(5), which bars allowance of such deduction where the return is not furnished within the stipulated time. The issue was treated as covered by binding jurisdictional precedent holding that no deduction under section 80P is available where the return is not filed in time.

Conclusion: The assessee was not entitled to deduction under section 80P(2)(a)(i) of the Income-tax Act, 1961 because the return of income was not filed within time.

Ratio Decidendi: Deduction under section 80P is not allowable when the statutory return-filing condition mandated by section 80A(5) is not satisfied.

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