2024 (7) TMI 946 - AT - Income Tax

Disallowance u/s 80(P)(2)(d) - interest income received from co-operative bank by the assessee a co- operative society from its investments on the alleged ground that ITR was filed beyond due date - treating the due date of filling the return of is 1-08-2011, irrespective of the fact that the assessee has filed the return of income within the time allowed u/s 139(1) - HELD THAT - In the present case, the Books of Account of the assessee society are audited on 09-07-2011 which is not disputed by the revenue. The assessee has filed the return of income on 20-09-2011 very much before the extended due date U/sec 139(1) as per CBDT order. Further the due date of filing of the return of income is 30-09-2018, as the assessee is a cooperative society and the books of accounts are audited under other laws. Further the applicability of the provisions U/sec 80AC of the Act are made in Finance Act 2018 effective from 01.04.2018 i.e from A.Y.2018-19 and the AY in consideration is A.Y.2011-12. Accordingly, considering the facts, circumstances and the ratio of the judicial decision, set aside the order of the CIT(A) and direct the AO to allow the claim of deduction u/sec 80P(2)(d) of the Act and the grounds of appeal allowed in favour of the assessee.

Summary

Issues:
Appeal against orders of National Faceless Appeal Centre (NFAC)/CIT(A) u/sec 154 and U/sec 250 of the Act regarding disallowance of deduction u/s 80P(2) clause (d) of the Act due to late filing of return of income for AY 2011-12.

Detailed Analysis:

1. Addition of Rs. 2,06,737/-:
The appellant, a cooperative society, contested the disallowance of deduction u/s 80P(2)(d) of the Act by the CIT(A) based on the alleged late filing of the return of income for AY 2011-12. The appellant argued that the return was filed before the due date of 30/09/2011, despite the CIT(A) upholding the disallowance. The appellant highlighted that the due date was extended to 31/10/2011 and that the provisions of section 80AC of the Act were not applicable for AY 2011-12.

2. Rectification Petition and Appeal:
The appellant filed a rectification petition u/sec 154 of the Act after the initial order u/sec 143(1) disallowed the deduction. The petition was rejected, leading to an appeal before the CIT(A). Despite the appellant's arguments, the CIT(A) upheld the disallowance, prompting the appellant to appeal to the Tribunal.

3. Contentions and Submissions:
During the hearing, the appellant's representative argued that the due date for filing the return was 30/09/2011, not 01/08/2011 as mentioned in the order. The representative emphasized that the appellant's books were audited under the Cooperative Societies Act and that the return was filed within the extended due date. Additionally, the appellant cited a relevant case law regarding due dates for cooperative societies.

4. Tribunal Decision:
After considering the submissions and the facts of the case, the Tribunal found in favor of the appellant. The Tribunal noted that the appellant's books were audited under the Cooperative Societies Act, and the return was filed within the due date. The Tribunal also highlighted the inapplicability of section 80AC of the Act for AY 2011-12. Consequently, the Tribunal directed the Assessing Officer to allow the deduction u/sec 80P(2)(d) of the Act, leading to the appeal being allowed.

5. Conclusion:
Both appeals filed by the appellant were allowed by the Tribunal, following a detailed analysis of the issues related to the disallowance of deduction u/s 80P(2)(d) of the Act due to the timing of the filing of the return of income. The Tribunal's decision was based on the specific circumstances of the case, including the nature of the appellant as a cooperative society and the applicable laws for auditing and filing returns.