2014 (12) TMI 1265 - AT - Income Tax

Denial of deduction u/s. 80P by invoking the provisions of sec. 80A(5) - Assessee filed return of income beyond the time limit prescribed u/s. 139 and the time given in notice u/s. 142(1)- Held that - After considering the provisions of section 80A(5) and the judgment of the Apex Court in Prakash Nath Khanna & Another vs CIT (2004 (2) TMI 3 - SUPREME Court ) found that the assessee is not eligible for exemption u/s 80P unless return is filed either u/s 139(1) or 139(4) or within the time provided by the assessee in the notice issued u/s 142(1) of the Act or u/s 148 of the Act and a claim was made for deduction u/s 80P of the Act. See case of Ramanthali Service Co-operative Bank Ltd. vs. ITO 2014 (11) TMI 1108 - ITAT COCHIN - Decided against assessee

Summary

Issues:
Denial of deduction u/s. 80P by invoking sec. 80A(5) of the Act.

Analysis:

1. The appeal was against the order passed by the CIT(A) regarding the denial of deduction u/s. 80P of the Act by invoking sec. 80A(5) for the assessment year 2010-11. The assessee, a Co-operative Bank, failed to file the return of income within the prescribed time, leading to the initiation of best judgment assessment u/s. 144 of the Act by the Assessing officer.

2. The Assessing officer disallowed the claim of deduction u/s. 80P while completing the assessment. On appeal, the CIT(A) dismissed the ground based on a previous decision of the ITAT, Cochin Bench in a similar case. The assessee contended that as a Primary Agricultural Credit Society, the profit derived from business is exempted under sec. 80P. The assessee argued that the Assessing officer did not consider the exemption claim, and the assessment was made without regularizing the return filed.

3. The Tribunal referred to a similar case and observed that the assessee is not eligible for exemption u/s. 80P unless the return is filed within the specified time under the Act. Citing previous judgments and the Apex Court decision, the Tribunal upheld the denial of deduction u/s. 80P in the absence of a timely filed return and a claim made for deduction.

4. Consequently, the Tribunal dismissed the appeal, aligning with the view taken in the previous case. The decision was pronounced on 05-12-2014, maintaining consistency with the interpretation of the law regarding the eligibility for deduction u/s. 80P based on the timely filing of returns and adherence to statutory requirements.

This detailed analysis highlights the key aspects of the judgment, including the legal provisions invoked, the factual background, arguments presented by both parties, and the Tribunal's decision based on precedent and statutory interpretation.