In ITA No.454/Ahd/2023 -ITAT- ITAT (Ahmedabad) grants relief to Uttam Dairy Staff Co-operative Credit & Supply Society Limited, asserting delay in filing return justified due to belated Government Auditor Report
Member Suchitra Kamble (Judicial) [09-08-2023]

Read Order: Uttam Dairy Staff Co-operative Credit & Supply Society Limited v. The AO, CPC, Bangalore/ ITO

Chahat Varma

New Delhi, August 14, 2023: The Ahmedabad bench of the Income Tax Appellate Tribunal has ruled in favour of Uttam Dairy Staff Co-operative Credit & Supply Society Limited (assessee), highlighting that the denial of the right to claim deduction under Section 80P of the Income Tax Act, by the CIT(A) and the Assessing Officer was unjustified. The Tribunal found that the delay in filing the return of income was due to the belated submission of the Government Auditor's report, which was beyond the control of the assessee.

In the matter at hand, the assessee, being a Co-operative Society, had filed its income tax return, seeking a deduction of Rs. 4,18,340 under Section 80P of the Act. However, the CPC denied this claim and imposed a demand of Rs.1,61,860. In response, the assessee appealed the Assessment Order to the CIT(A), but the appeal was dismissed.

The single-member bench of Suchitra Kamble (Judicial) noted that there was no dispute about the assessee's entitlement to the deduction under Section 80P and recognized that the delay in filing the return was caused by circumstances beyond the assessee's control. Specifically, the report from the Government Auditor was submitted belatedly, which led to the delay in filing the return.

Consequently, the bench held that the disallowance of the deduction under Section 80P based solely on the delay in filing the return was unwarranted.

In conclusion, the Tribunal allowed the appeal of the assessee, providing relief in this matter.