TaxTMI 
TaxTMI 
2025 (5) TMI 2225
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....nder section 80P of the Act on the interest income earned from mandatory deposit as well as erred in denying the 80P deduction by invoking the provision section 80A(5) of the Act. 3. The facts in brief are that the assessee is a cooperative society engaged in the business of providing credit facility to its members and supply of fertilizers to its members. The assessee for the year under dispute (A.Y. 2017-18) has not filed return of income. 4. Subsequently, the AO based on the information received about the cash deposit during the demonetization period i.e. 9th November 2016 to 31st December 2016 amounting Rs. 21,64,440/- in the bank, issued several notices under section 142(1) of the Act, requiring assessee to file the return of inc....
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....e notices issued for hearing. Hence, the learned CIT(A) proceeded to adjudicate the issue based on the material available on record. 10. The learned CIT(A) after considering the facts in totality confirmed the addition made by the AO by observing as under: 5.2 I have carefully considered the grounds of appeal raised by the appellant and examined the issue under dispute in the light of the facts and circumstances of the case and relevant provisions of the statute, Rules framed thereof and Circulars issued by the CBDT. 5.3 As seen from the facts of the case, appellant did not file its return of income for A.Y. 2017-18 within the time limit under section 139(1)/139(4) or u/s 142(1) of the Act. The AO disallowed deduction u....
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.... as per provision of section 80A(5) of the I.T. Act, 1961. 5.5 The appellant also requested that other ground may be taken at the time of hearing. Since, the assessee has not taken any more ground before the undersigned, therefore, this ground is not adjudicated upon. 6. In the result, the appeal is dismissed. 11. Being aggrieved by the order of the learned CIT(A), the assessee is in appeal before the tribunal. 12. The learned AR before me submitted that the return of income was furnished as on 24-09-2019 in response to notice issued under section 142(1) of the Act dated 12-07-2019. However, the AO proceeded to make assessment under section 144 of the Act without considering the return of income filed. The learned AR....
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.... the case of Nileshwar Rangekallu Chethu Vyavasaya Thozhilali Sahakarana Sangham v. CIT reported in [(2023) 152 taxmann.com 347/459 ITR 730]. The Hon'ble Kerala High Court clearly held that as per the law prior to 1-4-2018, a claim for deduction under section 80P had to be made in a valid return filed within the timelines provided under the Act i.e. under section 139(1), 139(4), 142(1), or 148 of the Act and after the Finance Act 2018 amendment, only returns filed within the due date under section 139(1) are acceptable for such claims. 14.2 The Hon'ble Court also emphasized that the deduction provision is a statutory benefit, and the conditions set by law must be strictly followed. A failure to file a valid and timely return is not a min....
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.... 80P in a return filed within time under sections 139(4), 142(1) or section 148, he will not be allowed the deduction, unless the return in question was filed within the due date prescribed under section 139(1). Thus, it is clear that the statutory scheme permits the allowance of a deduction under section 80P of the IT Act only if it is made in a return recognised as such under the IT Act, and after 1- 4-2018, only if that return is one filed within the time prescribed under section 139(1) of the Act. As the return in these cases, for the assessment years 2009-10 and 2010-11, were admittedly filed after the dates prescribed under sections 139(1) and 139(4) or in the notices issued under section 142(1) and section 148, the returns were indee....