2025 (2) TMI 824 - AT - Income Tax

Denial of deduction u/s. 80P - return of income was filed belatedly - HELD THAT - CBDT vide instruction dated 27.02.2019 issued u/s. 119(2)(b) of the Act directed that all the return of income and reports of audit which are filed till 02.08.2019 are deemed to have been filed by 31.10.2018 in case of tax payers of Kerala following the devastating floods in the month of August 2018. Therefore return of income cannot be considered as belatedly filed. Therefore the matter may be set aside to the AO to pass appropriate order rectifying the order passed u/s. 154 of the Act. DR did not express any objection to the above submission. We remit the matter back to the file of the CPC to amend the rectification considering the instruction issued by the CBDT treating all the returns of income filed by 02.08.2014 were treated as filed by 31.10.2018. Appeal filed by the assessee stands partly allowed.

Summary

The case involves an appeal by a co-operative society against the denial of a deduction under section 80P of the Income Tax Act for the Assessment Year 2018-19. The appellant's return of income was initially processed denying the deduction due to a perceived delay in filing. Despite subsequent attempts for rectification, the denial was upheld by the authorities. However, the appellant argued that due to specific instructions by the CBDT following the Kerala floods, the return should not be considered belatedly filed. The Appellate Tribunal agreed with this argument and remitted the matter back for rectification in line with the CBDT's instructions, resulting in the appeal being partly allowed.