INCOME TAX ACT, 1961

Section 147

Reassessment - Deduction under section 80P(2)(a)(i) - Claiming deduction under section 80P and return filed in response to section 148 -

Assessee, a credit co-operative society, claimed deduction under section 80P(2)(a)(i). AO disallowed deduction on the ground that assessee had not filed return of income under section 139(1) or section 139(4) but filed it in response to notice under section 148. Held: Nowhere in section 80P or in section 80A(5), it is mentioned that assessee is required to file its return of income within prescribed time provided under section 139(1) or 139(4) . But, what is required to be seen is whether assessee has made a claim in the return of income filed for the relevant year or not, even though such return is not filed within due date. In the instant case, although assessee had not filed its return of income for the concerned assessment year under section 139 but such return of income was filed in response to notice issued under section 148 and in said return of income, assessee made a claim for deduction under section 80P(2)(a)(i). Such return could not be treated as non est in law and invalid for the purpose of deciding exemption under section 80P.

Relied on:Chirakkal Service Co-operative Bank Ltd. v. CIT (2016) 384 ITR 490 (Ker-HC) : 2016 TaxPub(DT) 1770 (Ker-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14

INCOME TAX ACT, 1961

Section 80P(2)(a)(i)

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