Avanakuzhi Service Co-operative Society Ltd. vs. The Addl./Joint/Deputy/Assistant Commissioner of Income Tax / Income Tax Officer, NFAC, DELHI.

Parties Involved

Facts Summary

The assessee, Avanakuzhi Service Co-operative Society Ltd., filed an appeal against the order of the CIT(A)-National Faceless Appeal Centre, Delhi, dated 09.03.2023, regarding the assessment year 2018-2019. The lower authorities rejected the assessee's deduction claim under section 80P of the Income Tax Act, 1961, for deposits made in cooperative banks/societies. The Revenue argued that the deduction should be rejected as the assessee filed a belated return. However, the Tribunal found no merit in the Revenue's arguments, citing the jurisdictional high court's decision in Chirakkal Service Co-operative Bank Ltd. v. CIT [2016] 384 ITR 490 (Ker), which concluded that a belated return filed during the course of assessment could not be rejected for declining the sec.80P deduction claim. The Tribunal also noted that section 80AC of the Act, which the Revenue sought to invoke, was applicable from 01.04.2018, and the Revenue failed to provide any evidence of retrospective applicability.…

Legal Issues

• 1. Rejection of sec.80P deduction claim
• 2. Retrospective applicability of sec.80AC

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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