TaxTMI 
TaxTMI 
2026 (5) TMI 991
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.... assessee, the Bench directed to issue notice to the assessee. Accordingly, notice was issued to the assessee at the email ID given in Form No.36 as well as through speed post. Despite the repeated notices issued to the assessee, the assessee did not bother to appear and prosecute the present appeal. Accordingly, the Bench proposed to hear and dispose of this appeal ex-parte. 3. The assessee has raised the following grounds of appeal: "1. General 1. That the order of the Learned Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, dated 28.07.2025, is against the facts of the case and the provisions of law, hence liable to be quashed. 2. Deduction under Section 80P-Wrongful Denial 2. That the Learned CIT(A) erred in confirming the denial of deduction u/s. 80P of the Income-tax Act, 1961, amounting to 22,39,393/-, solely on the ground of belated filing of return. That the Learned CIT(A) failed to appreciate that Section 80P itself imposes no requirement of filing return within the time limit under Section 139(1). The benefit of Section 80P is a substantive right granted to co-operative societies and cannot be denied on procedu....
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....wn by the Hon'ble Supreme Court (eg Ashton Coop. Marketing Society Ltd. v. CIT, 208 ITR 768). 7. Prayer 7. The appellant therefore prays that the Hon'ble ITAT may kindly allow the deduction u/s. 80P as claimed, delete the demand of Rs. 21,67,499/-, and grant such other relief as deemed fit in the facts and circumstances of the case." 4. The assessee is a Cooperative Society and has not filed any return of income u/sec. 139 of the Income Tax Act [in short "the Act"], 1961. Based on the information of cash deposit of Rs. 4,87,37,123/- in the bank account of the assessee, the Assessing Officer reopened the assessment by issuing notice u/sec. 148 of the Act dated 07.04.2022. In response to the notice u/sec. 148 of the Act, the assessee filed return of income on 15.06.2023 declaring Rs. NIL income after claiming deduction u/sec. 80P of the Act. The Assessing Officer while passing the assessment order u/sec. 147 r.w.s.144B of the Act has denied the deduction of Rs. 2,34,393/- u/sec. 80P(2) of the Act on the ground that the assessee has not claimed the deduction in the return of income filed u/sec. 139 of the Act and therefore, in view of the provisions of sec....
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....duction u/s. 80P of Rs. 2,39,393/-. As the return of income was not filed as per section 139(1) of the I.T. Act in view of specific provisions of section 80AC of the I.T. Act (which are available in the Act w.e.f. 01.04.2018, which requires that claim u/s. 80P can be allowed only if return of income is filed as per section 139(1) of the I.T. Act), the AO disallowed the deduction claimed u/s. 80P of the I.T. Act. 5.2. The appellant in its grounds of appeal as well as in its submission has mainly taken two pleas; first, the appellant is of view that return in pursuant to notice u/s. 148 is a valid return, thus, the appellant is eligible for deduction u/s. 80P of the I.T. Act. The appellant in its support has relied on the decision of the Hon'ble ITAT, Rajkot in case of Ambaradi Seva Sahkari Mandali Ltd.,... vs The Dcit (Cpc), Bangaluru, Bengaluru, decision of the Hon'ble Kerala High Court in Chirakkal Service Co-operative Bank Ltd. v. CIT [(2016) 384 ITR 490 (Ker)). The appellant is also of the view that section 80AC was introduced by the Finance Act, 2018, therefore, should be applicable from AY 2019-20 onwards. The appellant has also given reference through the CBD....
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....ssee claiming deduction under other similar provisions contained in Chapter VIA of the Income-tax Act under the heading "C.-Deductions in respect of certain incomes". 22.2. In order to ensure timely filing of return by the assessee for claiming deductions under the provisions contained in Chapter VIA of the Income-tax Act under the heading "C.- Deductions in respect of certain incomes", section 80AC has been amended to provide that the benefit of deduction under the entire class of deductions under the heading "C.-Deductions in respect of certain incomes" in Chapter VIA of the Income-tax Act shall not be allowed unless the return of income is filed on or before the due date. 22.3. Applicability: This amendment take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent assessment years. This Circular also makes it clear that from AY 2018-19 onwards, the deduction u/s. 80P can be allowed only if return has been filed u/s. 139(1) of the I.T. Act. 5.4. This specific change in the act also make the decisions of various tribunal and courts as ineffective which have been made for pre A.Y. 2018....
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....r amendment in section 80AC of the I.T. Act. Further, the claim of the appellant that provisions of section 80AC(2)(ii) are applicable from AY 2019-20 is also unfounded in view of specific mention in the Circular discussed above that the above provisions of section 80AC are applicable from AY 2018-19 only. 5.7. In view of above facts and discussions, it is clear that denial of deduction u/s. 80P of the I.T. Act to assessee in view of non-filing of return of income u/s. 139(1) of the I.T. Act is fully justified and correct. Therefore, the decision of the AO in this regard is upheld and the appeal of the appellant on this issue is liable to be dismissed. 5.8. Now corning to the grounds where appellant has given reference through the CBDT Circular No. 13/2023 dated 26.07.2023 and prayed for the condonation of delay. In this regard, it is important to mention that the said Circular is about the application filed by assessees u/s. 119(2)(b) of the I.T. Act and the Authority for such condonation lies with CCIT/DGIT. Therefore, the said Circular do not empower the CIT(A) to condone the delay in filing the return of income. If assessee want for condonation of delay for fi....