TaxTMI 
TaxTMI 
TaxTMI 
2025 (2) TMI 224
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....take up the appeals in seriatim. ITA No. 781/Coch/2024 - AY: 2017-18 3. Brief facts of the case are that the assessee is a primary agricultural credit co-operative society registered under the provisions of the Kerala Co-operative Societies Act, 1969. The appellant did not file return of income for AY 2017-18 under the provisions of section 139(1) of the Income Tax Act, 1961 (the Act). The Income Tax Officer, Ward-5, Alappuzha (hereinafter called "the AO") issued notice u/s. 142(1) of the Act requiring the assessee to file the return of income. In response the assessee filed the return of income on 25.01.2019, which beyond the stipulated time period. Therefore, the AO completed the assessment vide order dated 30.12.2019 u/s. 144 of the Ac....
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....nly such claims for deduction under Section 80P of the IT Act as were made by the assessee in a return of income filed by him. That return can be under Sections 139(1), 139(4), 142(1) or Section 148, and to be valid, had to be filed within the due date contemplated under those provisions. Under Section 80A(5), the claim for deduction under Section 80P could be made by an assessee in a return filed within the time prescribed for filing such returns under any of the above provisions. The amendment to Section 80AC with effect from 1.4.2018, however, mandated that for an assessee to get a deduction under Section 80P of the IT Act, he had to furnish a return of his income for such assessment year on or before the due date specified in Section 13....
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....the deduction cannot be condoned either by the statutory authorities or by the courts. 13. It is in the backdrop of the aforesaid discussion that we must consider the findings of a Division Bench of this Court in The Chirakkal Service Co-operative Bank Ltd. [supra]. The findings therein, that appear to suggest that a claim for deduction under Section 80P can be entertained even if it is made in a return filed beyond the time permitted under the IT Act, ignores the perspective that sees the requirement of the claim for deduction being made in a valid return as a pre-condition for obtaining the benefit of the statutory deduction. The said findings also fly in the face of the express statutory provisions that requires the claim to be made in....
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....ieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO. 10. Being aggrieved by the order of the learned CIT(A) the assessee is in appeal before us. 11. The learned A.R. before us submitted that the delay occurred due the bona fide belief that the society was not statutorily required to file return of income, being a primary agricultural credit society in terms of clause (cciv) of the Banking Regulation Act, eligible for deduction u/s. 80P of the Act. 12. On the other hand, the learned Sr. DR vehemently supported the orders of the authorities below. 13. We have heard the rival contentions of both the parties and perused the materials available on record. At the outset, we note that the Ho....
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....'s hand. 9. Regarding the interest income received from Treasury, Scheduled Banks, etc., this issue is no longer res integra, as it is covered by the judgement of the Hon'ble Jurisdictional High court in the case of CIT vs. Sahyadri Co-operative Credit Society Ltd. in ITA No. 63 of 2019, wherein it was held as under: - "The question that arises therefore is whether, merely because the assessee chooses to deposit its surplus profit in a permitted bank or financial institution, and earns interest on such deposits, such interest would cease to form part of its profits and gains attributable to its business of providing credit facilities to its members? In our view that question must be answered in the negative, since we cannot accept th....