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TMI Blog2025 (2) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst the assessee by the decision of Nileshwar Range Kallu Chethu Vyavasaya Thozihilali Sahararana Sangham [2023 (3) TMI 1055 - KERALA HIGH COURT] as held that the assessee is not entitled for deduction u/s. 80P as no valid return of income was filed by the assessee society - Decided against assessee. Penalty levied u/s. 271B - audited financial statements were not furnished by the assessee within the due date as specified u/s 44AB - HELD THAT:- As decided in Chavakkad Service Co-op. Bank Ltd. [2024 (11) TMI 1272 - KERALA HIGH COURT] where assessee co-operative societies did not file audit report as mandated u/s 44AB within time limit specified thereunder, however, audit reports were made available before Assessing Authority at time of fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... return of income on 25.01.2019, which beyond the stipulated time period. Therefore, the AO completed the assessment vide order dated 30.12.2019 u/s. 144 of the Act. 4. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO. 5. Being aggrieved, assessee is in appeal before this Tribunal. 6. We have heard the rival contentions of both the parties and perused the material available on record. The solitary issue that arises for our consideration is whether or not the CIT(A) was correct in law in confirming the action of the AO denying deduction u/s. 80P of the Act as no valid return of income was filed by the assessee. Admittedly, in the present case the assessee has not filed vali ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et a deduction under Section 80P of the IT Act, he had to furnish a return of his income for such assessment year on or before the due date specified in Section 139(1) of the IT Act. In other words, after 1.4.2018, even if the assessee makes his claim for deduction under Section 80P in a return filed within time under Sections 139(4), 142(1) or Section 148, he will not be allowed the deduction, unless the return in question was filed within the due date prescribed under Section 139(1). Thus, it is clear that the statutory scheme permits the allowance of a deduction under Section 80P of the IT Act only if it is made in a return recognised as such under the IT Act, and after 1.4.2018, only if that return is one filed within the time prescribe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... obtaining the benefit of the statutory deduction. The said findings also fly in the face of the express statutory provisions that requires the claim to be made in a return filed by the assessee, by which term is meant a valid return under the Act, and therefore have necessarily to be seen as per incuriam. We also find that the subsequent amendments to Section 80AC by the Finance Act 2018 fortifies the view that we have taken for, it makes the claim for deduction under Section 80P conditional on filing a return within the due date prescribed under Section 139(1) of the IT Act. In other words, the pre-condition for claiming the deduction under Section 80P of the IT Act has now been made more stringent by reducing the time available to an ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e authorities below. 13. We have heard the rival contentions of both the parties and perused the materials available on record. At the outset, we note that the Hon'ble Jurisdictional High Court in the case of Chavakkad Service Co-op. Bank Ltd. [2024] 169 taxmann.com 45 (Kerala) has observed as under: - "Where assessee co-operative societies did not file audit report as mandated under section 44AB within time limit specified thereunder, however, audit reports were made available before Assessing Authority at time of finalization of assessments, since delay in obtaining audit reports from statutory auditors under Kerala Co-operative Societies Act and Rules could be seen as a reasonable cause for delayed submission of audit reports, no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s attributable to its business of providing credit facilities to its members? In our view that question must be answered in the negative, since we cannot accept the contention of the Revenue that the interest earned on those deposits loses its character as profits/gains attributable to the main business of the assessee. It is not as though the assessee in the instant case had used the surplus amount (the profit earned by it] for an investment or activity that was unrelated to its main business, and earned additional income by way of interest or gain through such activity. The assessee had only deposited the profit earned by it in the manner mandated under Section 63 of the Multi-State Co-operative Societies Act, or permitted by Section 64 o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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