M/S.NILESHWAR RANGEKALLU CHETHU THOZHILALI VYAVASAYA SAHAKARANA SANGHAM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) As both these appeals arise out of a common order of the Income Tax Appellate Tribunal, Cochin Bench, in relation to the appellant/assessee and involve a common issue relating to the entitlement of the appellant to deduction under Sec. 80P of the Income Tax Act [hereinafter referred to as the 'IT Act'], they are taken up for consideration together and disposed by this common judgment.

(2.) The brief facts necessary for disposal of these appeals are as follows:

(3.) For the assessment year 2009-10, the appellant did not file any return of income. Believing that the appellant had income chargeable to tax that had escaped assessment, the Department issued a notice under Sec. 148 of the IT Act to the appellant on 6/2/2012 requiring the appellant to furnish a return of income within 30 days of receipt of the notice. The appellant failed to file the return of income in response to the notice under Sec. 148. A return was however filed by the appellant on 5/7/2012, which was much beyond the date for filing of return in terms of Sec. 139(4) of the IT Act. The return of income for the assessment year 2009-10 should have been filed on or before 31/3/2011 in terms of Sec. 139(4) of the IT Act. Since the return of income was filed after the expiry of the time allowed under Sec. 139(4) and much after the due date mentioned in the notice under Sec. 148, the Assessing Officer treated the same as invalid and proceeded to complete the assessment in terms of Sec. 144 of the IT Act after hearing the representative of the appellant and verifying the books of account and other details called for by the Department. While completing the assessment, the claim of the appellant for deduction under Sec. 80P was disallowed on the ground that the claim for deduction had not been made in a valid return filed by the appellant in terms of the IT Act. It was the stand of the Assessing Officer that in view of the provisions of Sec. 80A(5) of the IT Act, the claim for deduction could not be considered.