The Income Tax Appellate Tribunal, Kochi, recently ruled that the benefit of deduction provided under section 80P of the Income Tax Act, 1961 cannot be denied to an agricultural credit society solely on the ground that the assessee has filed returns after the due date.
The assessee in the present case, Anjarakandi Farmer’s Service Co, is a primary agricultural credit society registered under the Kerala Co-operative Societies Act, 1969. The assessee is engaged in the business of providing agricultural credit to its members. It has filed returns for the relevant assessment years by claiming deduction under section 80P of the Income Tax Act. The returns were rejected by the Assessing Officer on ground that the returns were filed after the due date.
On appeal, both the Commissioner of Income Tax (Appeals) and the Appellate Tribunal dismissed the appeals filed by the assessee against the assessment order. However, the High Court of Kerala, on appeal, disposed the appeal filed by the assesseeby remanding the matter back to the Tribunal and observed that the assessee is entitled to get the benefit of section 80P(2).
As per the directions of the High Court, the Tribunal heard the matter again and held that the assessee society is entitled to the benefit of deduction provided under section 80P(2) of the Income Tax Act.
Read the full text of the order below.
