2025 (6) TMI 2008

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....s raised eight grounds of appeal but the only grievance is that ld.CIT(A) erred in not allowing the deduction u/s. 80P of the Act at Rs. 11,23,838/-. 3. Brief facts of the case are that the assessee is a Cooperative Society and did not file regular return of income. Based on the information about cash deposit of Rs. 5,31,740/- during the demonetization period, ld. Assessing Officer issued notice u/s. 142(1) of the Act on 15.12.2017 requiring the assessee society to file the return for A.Y. 2017-18. In response, assessee furnished the return on 28.02.2018 declaring income of Rs. 24,000/- and again revised the return on 07.03.2018. Ld. AO observed that assessee has not e-verified the return and therefore the return is invalid. Ld. AO after....

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....iled a valid return then also for A.Y. 2017-18 firstly section 80AC cannot be applied as it was brought into the Act from 01.04.2018 and secondly 80A(5) of the Act cannot be applied because it comes into operation if a return is filed and claim is not made. In support of this, reliance was placed on the decision of this Tribunal in the case of Rajya Rakhiv Police Karmachari Sahakari Patsanstha Maryadit Vs. ITO - ITA No.171/PUN/2025 order dated 16.06.2025. 7. On the other hand, ld. Departmental Representative vehemently argued supporting the orders of the lower authorities. 8. I have heard the rival contentions and perused the record placed before me. I observe that the assessee is a Cooperative Society and did not file regular return ....

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....P of the Act. Ld. AO has invoked section 80A(5) of the Act for making the impugned disallowance. 10. I observe that in the instant case assessee has not filed regular return of income but then return of income has been filed in compliance to notice u/s. 142(1) of the Act and though e-verified at a later date, i.e., subsequent to framing of the assessment order, that was well in accordance with the CBDT Circular No.13/2020 dated 13.07.2020. Ld. AO has invoked section 80A(5) for denying the claim of deduction u/s. 80P of the Act which provides that "where the assessee fails to make a claim in his return of income for any deduction under section 10A or section 10AA or section 10B or section 10BA or under any provision of this Chapter under ....

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....ime relaxation for e-verification of tax returns for A.Y. 2015-16 to A.Y. 2019-20 it was pending due to non-submission of acknowledgement on ITR-V. Assessee at a later date on 28.08.2020 had sent the ITR-V and it has been acknowledged by the Department also and is verifiable from the screenshot obtained from the income-tax portal under the assessee's PAN where it provides that return of income for A.Y. 2017-18 filed on 28.02.2018 and on 07.03.2018 has been accepted and the ITR-V has been received on 28.08.2020 and 15.09.2020. 13. Under these given facts and circumstances where the conditions of section 80A(5) stands fulfilled and a valid claim of deduction u/s. 80P of the Act has been made in the return, even ld. AO could have allowed th....