The Tuticorin Agricultural Producers Co-Op Marketing Society Limited Condonation Window Preserved

The assessee, a co-operative marketing society registered under the Tamil Nadu Cooperative Societies Act, failed to file its return of income for AY 2020-21 within the prescribed time under Section 139(1). 

Based on information received through the Insight Portal regarding substantial turnover reflected in GSTR-3B filings and significant cash deposits in bank accounts, reassessment proceedings were initiated under Sections 148A and 148.

In response to reassessment notice, the assessee filed its return declaring nominal taxable income after claiming deduction under Section 80P(2)(a)(i). The Assessing Officer denied the deduction solely on the ground that the return had not been filed within the due date prescribed under Section 139(1), and the First Appellate Authority affirmed the denial.

Before the Tribunal, the assessee pointed out that it had already filed a condonation petition under Section 119(2)(b) before the competent authority seeking condonation of delay in filing the return of income. 

The Tribunal held that the outcome of the condonation petition would directly govern the assessee’s entitlement to deduction under Section 80P. Consequently, the matter was restored to the Assessing Officer with directions to pass a fresh order after the competent authority adjudicates the condonation application.