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TMI Blog2024 (8) TMI 1170X X X X Extracts X X X X X X X X Extracts X X X X ..... sible deduction under the Act - Decided against assessee. - Shri Duvvuru Rl Reddy, Hon ble Judicial Member For the Appellant : Sri C. Subrahmanyam, AR For the Respondent : Sri Dr. Aparna Villuri, Sr. AR ORDER PER DUVVURU RL REDDY, JUDICIAL MEMBER : This appeal filed by the assessee is against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [ Ld. CIT(A)-NFAC ] in DIN Order No. ITBA/NFAC/S/250/2023-24/1060762337(1), dated 10/02/204 arising out of the order passed u/s. 144 of the Income Tax Act, 1961 for the AY 2017-18. 2. Briefly stated the relevant facts of the case are that the assessee is a Primary Agricultural Cooperative Credit Society Limited. As per the information available with the Department, the assessee has deposited cash of Rs. 8,69,688/- on 08/11/2016 in its account held with Krishna District Central Co-operative Bank, Gampalagudem Branch during the demonetization period. The Ld. AO during the assessment proceedings observed that the assessee did not file its return of income before the due date u/s. 139(1) of the Act and therefore a notice u/s. 142(1) of the Act calling for return of income was issued on 07/03/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome for the year under consideration u/s. 139 or in response to the notice u/s. 142(1). Though evidently such failure by itself justifies invocation of provisions of section 80A(5) for denial of captioned deduction, merely for the sake of completeness it is reiterated that the details available on record do not show that the assessee has filed any return of income for the year under consideration. Under such circumstances, respectfully following the decisions of the Hon ble High Court of Kerala no interference is called for in the action of the Ld. AO in denying the deduction of Rs. 27,47,952/- during the year under consideration as per the provisions of section 80A(5) of the Act. [Penultimate para of Para No.5 of the Ld. CIT(A)-NFAC s order]. Thus, the Ld. CIT(A)-NFAC sustained the disallowance made by the Ld. AO and dismissed the appeal of the assessee. Aggrieved by the order of the Ld. CIT(A)-NFAC, the assessee is in appeal before the Tribunal by raising the following grounds of appeal: 1. That under the f acts and circumstances of the case the order passed u/s. 144 of the Act dated 26/12/2019 that was upheld by Ld. C IT (A) vide order u/s. 250 of the Act dated 10/02/2024 is con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on or after 01/04/2018 ie., AY 2018-19 and not applicable to the earlier assessment years ie., AY 2017-18 as in the case of the assessee. Therefore, the assessee is entitled to claim deduction u/s. 80P(2)(a)(i) of the Act. The Ld. AR relied on the decision of the Mumbai Tribunal in ITA No. 1613/Mum/2021 (AY 2017-18), dated 05/09/2022 in the case of Saidatar Co-operative Credit Society Ltd vs. ITO, Ward-32(1)(1), Mumbai. 5. Per contra, the Ld. DR submitted that the assessee has not filed a valid return of income in accordance with the provisions of section 139(1) or 139(4) of the Act in order to claim deduction u/s. 80P of the Act. The Ld. DR further submitted that as per section 80A(5) of the Act when no valid return of income is filed, the assessee has failed to make a claim of deduction u/s. 80P(2)(a)(i) of the Act, and therefore no deduction is permissible under the Act. The Ld. DR strongly relied on the orders of the Ld. Revenue Authorities. 6. I have heard both the parties perused the material available on record and the orders of the authorities below. Admitted facts are that the assessee has not filed its return of income u/s. 139 of the Act within the prescribed time limit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l in the case of The Vatsavai Primary Agricultural Cooperative Credit Society Limited vs. ITO in ITA No. 220/Viz/2021 (AY 2017-18) has observed as under: 6. We have heard both the parties perused the material available on record and the orders of the authorities below. Admitted facts are that the assessee has not filed its return of income for the impugned assessment year but has submitted trading account, P L Account, income and expenditure account and balance sheet as on 31/3/2017 during the assessment proceedings. Section 80A(5) of the Act is extracted below for reference: Sec. 80A (5) Where the assessee fails to make a claim in his return of income for any deduction under section 10A or section 10AA or section 10B or section 10BA or under any provision of this Chapter under the heading C. Deductions in respect of certain incomes , no deduction shall be allowed to him thereunder. ; 7. As per sub-section (5) of section 80A of the Act it is imperative to the assessee to make a claim in its return of income for any deduction under any provisions of the Chapter under the heading C-deduction in respect of certain incomes . Since the assessee has failed to file its return of income cl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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