TaxTMI 
TaxTMI 
TaxTMI 
2023 (1) TMI 893
X X X X Extracts X X X X
X X X X Extracts X X X X
....TA.II dated 27/09/2019 and the appellant had field its return within the due dates making it eligible for deduction u/s 80P." 3. The facts of the case are that the assessee is a co-operative society and is assessed to Income Tax by Centralized Processing Centre, Bangalore. The assessee is a Credit Cooperative Society registered under the provisions of the Karnataka State Cooperative Society's Act 1959 and is engaged in the business of providing credit facilities to its members, as per the bylaws approved by the Registrar of Cooperative societies. The assessee filed a return of Income on 31.10.2018 with gross total income of Rs.639649/- and claiming deduction u/.80 P(2) of the Act of Rs.546661/- and disclosed total income of Rs.92990/-. The assessee received intimation u/s. 143(1) of the IT Act through mail. The Assessing Officer (AO) denied the deduction u/s. 80(P)(2)(a)(i) of the Income Tax Act, 1961 (the Act) by observing that the credit co-operative society is eligible for availing the exemption under Section 80P(20(a)(i) of the Act only if the return of income is filed with the due date. In the present case the assessee filed the return of income after due date for filing ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o file the return of income is 31.10.2018. Hence, the denial of deduction under Section 80P(2)(a)(i) of the Act is not justified and it is to be granted to the assessee. 6. On the other hand, the learned D.R. submitted that Explanation 2(ii) in Section 139(1) of the Act is not applicable to the assessee, since the assessee is not liable to audit under Section 44AB of the Act. Being so, extended time limit to file the return of income is not available to the assessee and in view of the restriction imposed in Section 80-AC of the Act the assessee is not entitled for deduction under Section 80P(2)(a)(i) of the Act. 7. I have heard the rival contentions and perused the material on record. In this case the assessment year involved is 2018-19. The regular time limit to file the return of income for the assessee is 31.08.2018. However, the said limit has been extended by CBDT vide circular dated 08.10.2018, which reads as follows: - "SECTION 139, READ WITH SECTION 119, OF THE INCOME-TAX ACT, 1961 INCOME - RETURN OF - EXTENSION OF DUE DATE FOR FILING OF INCOME-TAX RETURNS AS WELL AS REPORTS OF AUDIT ORDER IEN0.225/358/2018/ITA.11]. DATED 24-9-2018 On due consideration of representati....
X X X X Extracts X X X X
X X X X Extracts X X X X
....fficers website 9 The Institute of Chartered Accountants of India, IP Estate, New Dell, 110004 10. CIT (M&TP) with request to issue Press Release & for placing on Twitter handle of the department (Rajarajeswar R.) Under Secretary to Government of India 8. Section 139(1) of the Act is also relevant to decide the issue in dispute, which reads as under: - "139. (1) Every person,- (a) being a company or a firm; or (b) being a person other than a company or a firm, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed20 form and verified in the prescribed manner and setting forth such other particulars as may be prescribed : Provided that a person referred to in clause (b), who is not required to furnish a return under this sub-section and residing in such area as may be specified by the Board in this behalf by notification in the Official Gazette, and who during the previous year ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... financial interest in any entity) located outside India where, income, if any, arising from such asset is includible in the income of the person referred to in clause (a) of that proviso in accordance with the provisions of this Act: Provided also that every person, being an individual or a Hindu undivided family or an association of persons or a body of individuals, whether incorporated or not, or an artificial juridical person, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year, without giving effect to the provisions of clause (38) of section 10 or section 10A or section 10B or section 10BA or section 54 or section 54B or section 54D or section 54EC or section 54F or section 54G or section 54GA or section 54GB or Chapter VI-A exceeded the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed: Provided also that a person referred to in clause (b)....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... learned A.R. submitted that as per Section 63 of the Karnataka Co-Operative Societies Act, 1959 the assessee's books are required to be audited under the Act. 8.1 For clarity the same is reproduced as under: - "Extract of Section 63 of the Karnataka Cooperative Societies Act, 1959 CHAPTER VIII AUDIT, INQUIRY, INSPECTION AND SURCHARGE. 63 Audit. - (1) Every Cooperative society shall get its accounts audited at least once in a year before the first of September following the close of the cooperative year by an auditor or an auditing firm appointed by the general body of the cooperative society from a panel of auditors or auditing firms approved by the Director of cooperative audit; Provided that the Director of co-operative audit shall be the authority competent to prepare and maintain a list of auditors and auditing firms who satisfy the prescribed qualification and experience for undertaking the audit of accounts of co-operative societies in the state. [Provided further that, the National Bank shall prepare a list of auditors and auditing firms who satisfy, the prescribed qualification and experience for undertaking the audit of accounts of State Co-operative Bank and ....