2026 (1) TMI 593

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....0/2025-26/1076544400(1) dated 29.05.2025 for the A.Y.2017-18 arising out of order passed under section 144 of Income Tax Act, 1961 (in short 'Act') dated 17.12.2019. 2. Brief facts of the case are that, assessee is a primary agricultural cooperative society, has not filed the return of income under section 139(1) of the Act. The case was selected for scrutiny, for the reason, that the assessee has made cash deposits amounting to Rs. 37,57,500/- during the demonetization period into the bank account of the assessee. Subsequently, Ld. Assessing Officer [hereinafter in short "Ld. AO"] issued notice under section 142(1) of the Act on 24.11.2017 calling for return of income. However, assessee has failed to furnish the return of income. Furthe....

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.....2019 is a valid return for the purpose of S.80A(5) of the Act and that the assessing officer is not justified in treating the return as invalid return. 4. Any other ground that may be urged at the time of appeal hearing." 5. The only issue emanating from the grounds raised by the assessee is with respect to disallowance of deduction claimed by the assessee under section 80P of the Act claimed in the return of income filed on 28.11.2019, in response to notice u/s 142(1). 6. At the outset, the Learned Authorized Representative [Ld. AR] argued that the assessee is a Primary Agricultural Credit Society Limited and claimed deduction under section 80P of the Act for the A.Y.2017-18. Ld.AR submitted that Ld. AO/Ld. CIT(A) erred in ....

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....18 i.e., A.Y.2018-19 and not applicable to the earlier assessment years i.e., A.Y. 2017-18 as in the case of the assessee. Therefore, the assessee is entitled to claim deduction under section 80P of the Act even though the return of income is filed belatedly. 7. Per contra, the Ld. DR submitted that the assessee has not filed a valid return of income in accordance with the provisions of section 139(1) or 139(4) of the Act in order to claim deduction under section 80P of the Act. The Ld. DR further submitted that as per section 80A(5) of the Act when no valid return of income is filed, the assessee has failed to make a claim of deduction under section 80P of the Act, and therefore no deduction is permissible under the Act. The Ld.DR stron....

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....owever, the section does not specify that whether the deduction is allowable if the return of income is filed belatedly. The only condition is that the assessee should make a claim while filing the return of income. In the case on hand, the assessee has made a claim for deduction u/s 80P while filing the return of income on 28.11.2019 during the assessment proceedings. 10. Section 80AC of the Act is reproduced below for ready reference: - "80AC. Where in computing the total income of an assessee of any previous year relevant to the assessment year commencing on or after- (i) the 1st day of April, 2006 but before the 1st day of April, 2018, any deduction is admissible under section 80-IA or section 80-IAB or section 80-I....