TaxTMI 
TaxTMI 
2026 (6) TMI 241
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....1, 9690 to 9697, 9699, 9700, 9701, 9703 to 9705, 9707, 9709 to 9713, 9715, 9716 and 9718 to 9720 of 2026 Hon'ble Mr. Justice D. Bharatha Chakravarthy In W.P.(MD) Nos.7261 to 7276, 9694 to 9699, 10911 to 10914, 11520 to 11528, 11131 to 11141 of 2026: For the Petitioners : Mrs.Karthika Ashok for Mr.J.Ashok For the Respondents : Mr.N.Dilip Kumar Senior Standing Counsel for R1 Mr.N.Ramesh Arumugam Government Advocate for R2 in W.P.(MD)Nos.7261 to 7276 of 2026 In W.P.(MD) Nos.12525 to 12637 of 2026: For the Petitioners : Mr.T.Veldurai For the Respondents : Ms.M.Rajeswari Standing Counsel In W.P.(MD) Nos. 12013 to 12157 of 2026 : For the Petitioners : Mr.T.Veldurai For the Respondents : Mr.N.Dilip Kumar Senior Standing Counsel COMMON ORDER All these Writ Petitions are connected to each other and, as such, are taken up and disposed of by this common order. 1.1. These Writ Petitions are filed by Cooperative Societies challenging the orders passed in each case, rejecting their prayer to condone the delay in filing the annual returns. The petitioners - Cooperative Societies pray for consequential relief, including reconsideration of the petition and....
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.... impugned order stated that after the submission of the application, further particulars with reference to the date of filing of the returns, the date of completion of the statutory audit, date of receipt of the statutory audit and the detailed reasons for the delay in submitting the application from 26.07.2023 that is the date of circular upto 28.03.2024, which is the date of filing of the application was directed to be furnished. Since no further information was furnished, the impugned order dated 08.07.2024 was issued, rejecting the application for condonation of delay. Aggrieved by the same, the Writ Petition is filed. 2.2. In all the other cases, almost similar details were stated, and despite the issue of a circular by the CBDT and the receipt of the statutory audit, the delay was not condoned. Aggrieved by this, the Writ Petitions are filed. C. Arguments for the Petitioners: 3. Mrs. Karthika Ashok, the learned counsel appearing for the Writ Petitioners in W.P. No. 7261 of 2026, etc., would submit that the very object of the CBDT issuing the circular is to redress the genuine hardship of the Cooperative Societies. The Division Bench of this Court in W.A. (MD) No. 233....
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....hers [(2025) SCC OnLine All 4341] to contend that, given the cause of advancement of substantial justice, procedural delay should not come in the way. The learned counsel would also rely upon the same Judgment of the Division Bench of this Court in W.A.(MD). No. 2334 of 2025 (cited supra). Apart from the same, the learned counsel would also rely upon the Judgment of this Court in W.P.(MD) No.22108 of 2025, etc., and in W.P.No.30146 of 2025, etc. In these cases, the Courts themselves had condoned the delay and directed the Income Tax authorities to further deal with the issue in accordance with law. D. Arguments for the Respondents: 4. Per contra, Mr.N.Dilip Kumar, the learned Senior Standing Counsel, and Ms. M. Rajeswari, the learned Standing Counsel appearing on behalf of the Cooperative Societies, by producing a detailed tabular column, would contend that although it is stated that there is genuine hardship on account of the non-completion of the statutory audit under the Tamil Nadu Cooperative Societies Act, 1983, in fact, even after the audit was completed, by sheer indifference and carelessness, the Cooperative Societies have not filed the returns in time. 4.1. The le....
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.... Societies, income from interest, income from letting out godowns, warehouses, etc., and several other types of activities can also be deducted. 5.2. In all these cases, it is not disputed that the activities of the petitioner Cooperative Societies fall within the deductions permitted under Section 80 P (2) of the Income Tax Act, 1961. The Cooperative Societies were simply considering these deductions and were neither paying any income tax nor filing returns. Section 80 AC was introduced, and it became mandatory with effect from 01.04.2018 that no such deductions will be allowed under any provision of Chapter VI - A unless the assessee furnishes a return of its income before the due date specified under Section 139 (1) of the Income Tax Act, 1961. Section 139 (1) of the Income Tax Act, 1961 mandates that every company, firm, or person, other than a company or a firm, furnish a return of income before the due date. The due date in respect of each entity is enumerated in the Section. Under Section 80 of the Tamil Nadu Cooperative Societies Act,1983 read with Rule 102 of the Tamil Nadu Cooperative Societies Rules, 1988, a statutory audit is mandated in respect of each and every Coo....
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....#39;ble Supreme Court of India reiterated that the very concept of the Cooperative movement is in the public interest. It is in this context that the Parliament has enacted Section 80 P of the Income-tax Act, 1961, granting deductions in respect of the said activities of the Cooperative Societies. The denial of the same, solely because there is a delay in filing the returns, should be considered a procedural aspect pitted against the substantive entitlement. 5.5. In fact, when there is no tax evasion and only a procedural error in not filing the Income Tax returns in time is involved, then, as rightly contended by the learned counsel for the petitioners, this Court in R. Seshammal case (cited supra) held that such a plea would be technical. As rightly contended by the Cooperative Societies, the hardship appears genuine. The various Judgments cited supra on the alleviation of genuine hardship would apply to the facts in the instant cases. 5.6. Considering the genuine hardship, the CBDT has exercised its power under Section 119(2)(b) of the Income Tax Act, 1961. The CBDT is always entitled to issue circulars granting administrative relief to assessee's, such as extensions of ti....
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....er insisted upon an explanation for each day's delay, contrary to the liberal and purposive interpretation intended under the Circular. 5.8. The impugned orders passed with such a view cannot be countenanced. The circular has to be read in the context of the directive principles of State policy contained in Article 43 B of the Constitution of India, and with a view to promoting the Cooperative movement and the intention behind Section 80P of the Income-tax Act, 1961. Accordingly, as held by the Division Bench of the Allahabad High Court in the Cell Com Tele Services Private Limited case (cited supra) (paragraph No.18), an excessively precise and stringent approach cannot be countenanced. As a matter of fact, the binding precedent is the order passed by the Hon'ble Division Bench of this Court in W.A.(MD) No.2334 of 2025 (cited supra), whereby it considered the difficulties faced by the Cooperative Societies and condoned the delay. This has to be taken into account. Similarly, the Judgments in W.P.(MD) No.22108 of 2025 (cited supra) and W.P.(MD) No.30146 of 2025 (cited supra) would also squarely govern the fact situations. 5.9. At the same time, upon the arguments made by ....
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....are mandated to update the filing of IT returns promptly which is captured and displayed in the Dash Board of Circle Deputy Registrar/Regional Joint Registrar/Registrar of Societies. This would enable the regulatory authorities to ensure the compliance of cooperative societies in filing statutory returns including the IT returns periodically. This software would be fully functional by September 2026." 5.11. Therefore, it can be seen that a circular has now been issued to file the returns even before the completion of the statutory audit, on or before 31st October of every year. It must be noted that the circular has been issued specifically for the current assessment year to file the returns before 31.10.2026. It is further submitted that e-RCS software is being implemented, with a module developed for annual return/IT/GST filing, under the supervision of higher authorities, and it was undertaken that this software would be fully functional by September 2026. 5.12. It is further stated in paragraph No.3 of the affidavit that the Cooperative Societies, through the Regional Supervisory authorities, are free to engage Chartered Accountants and Audit firms for the purpose. Thus, ....