S. 80P Deduction not to be Denied to Co-operative Societies for Belated Returns, if Claim is Valid: ITAT

The Income Tax Appellate Tribunal (ITAT) has ruled that a co-operative society cannot be denied the tax deduction under Section 80P of the Income Tax Act merely for filing its income tax return belatedly. The tribunal held that as long as the society is otherwise eligible for the deduction and the claim is valid, the procedural lapse of a delayed return should not lead to the denial of this substantive benefit. Section 80P provides a deduction for the income of certain co-operative societies to promote the cooperative movement. The ITAT observed that the conditions for claiming the deduction do not include a stipulation that the return must be filed within the due date. This taxpayer-friendly ruling emphasizes that a procedural delay, which can be regularized by paying interest, should not be a ground for disallowing a legitimate statutory deduction.