Income Tax Appellate Tribunal - Mumbai
Shelter Co-Operative Housing Society ... vs The Deputy Director Of Income Tax, ... on 23 March, 2026
IN THE INCOME TAX APPELLATE TRIBUNAL "K(SMC)" BENCH MUMBAI
BEFORE SMT. BEENA PILLAI, JUDICIAL MEMBER
AND
SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER
ITA No. 6460/MUM/2025
Assessment Year: 2023-24
Shelter Co-operative Housing The Deputy Director of
Society Limited Income Tax, Bengaluru
Plot No.3, Survey No.63, Shivaji The Centralized Processing
Complex, Opp. Shakti Nagar, Vs. Centre, Income Tax
Dahisar East, Department, Post Bdg. No.2,
Mumbai 400068 Electronic City, Post Office,
Bengaluru 560500
(PAN : AAKAS1691Q)
(Appellant) (Respondent)
Present for:
Assessee : Shri Kunal Dilip Lunawat, Advocate
Revenue : Shri Bhagirath Ramawat, Sr. DR
Date of Hearing : 22.01.2026
Date of Pronouncement : 23.03.2026
ORDER
PER GIRISH AGRAWAL, ACCOUNTANT MEMBER
This appeal filed by the assessee is against the order of ld. ADDL/JCIT (A), Ranchi vide Order No. ITBA/APL/S/250/2025- 26/1079479659(1) dated 11.08.2025 passed against the rectification order passed u/s. 154 of the Income-tax Act, 1961 (hereinafter referred to as the "Act"), dated 25.07.2024 by the Centralized Processing Centre of the Income-tax Department, Bengaluru (CPC), for AY 2023-24.
2. Grounds taken by the assessee are reproduced as under:
"1) That On the facts and circumstances of the case and in law, the Ld. Assessing Officer Centralized Processing Centre, Bengaluru ("CPC") erred in disallowing the deduction of Rs.1,07,971/- claimed under Section 80P(2)(d) of the Income-tax Act, 1961, on the ground that the return of income was not filed within the due date prescribed under Section 139(1). The appellant had duly 2 ITA No. 6460/Mum/2025 Shelter Co-operative Housing Society Ltd.
A Y 2023-24 filed the return of income on 14th October 2023, well within the statutory due date. However, the CPC erroneously treated 23rd November 2023 (the date of receipt of ITR-V) as the filing date, leading to an incorrect disallowance. The disallowance so made is unjust, contrary to law, and deserves to be deleted.
2) That on the facts and circumstances of the case and in law, the CPC erred in considering 23rd November 2023 as the return filing date, ignoring that the appellant had dispatched the duly signed ITR-V to CPC, Bengaluru through ordinary post on 18th October 2023. The treatment of 23rd November 2023 as the filing date is factually incorrect, and the consequent denial of deduction under Section 80P(2)(d) is unsustainable and requires to be deleted.
3) That on the facts and circumstances of the case and in law, the CPC erred in passing the intimation/order under Section 143(1) and subsequently under Section 154 of the Act without properly appreciating the facts of the case and without affording the appellant an adequate opportunity of being heard. The said action is in violation of the principles of natural justice, rendering the order bad in law and liable to be quashed.
4) That on the facts and circumstances of the case and in law, the CIT (A) has erred in disposing of the appeal under Section 250 of the Act without granting proper and effective opportunity of hearing to the appellant. The impugned appellate order, having been passed in breach of natural justice, is illegal, arbitrary, and liable to be set aside.
5) The CPC erred in levying interest under Sections 234A, 234B, and 234C of the Act, which is unjustified on the facts and circumstances of the case and liable to be deleted.
6) The CPC erred in in levying fee under Section 234F of the Act, which is unwarranted and bad in law.
7) The Assesse craves leave to add, amend, alter, amend or drop any or all Grounds of appeal at the time of the Appeal proceedings."
3. Brief facts of the case are that assessee is a Co-operating Housing Society registered under the provisions of the Maharashtra Co-operating Societies Act, 1960. It is formed by its members with object of mutual help and operates strictly on the principle of mutuality. It does not carry on any business or commercial activity. Assessee filed its return of income u/s. 139(1) on 14.10.2023, reporting total income at Rs. 29,088/- after claiming deduction u/s. 80P(2)(d) of Rs. 1,07,971/- in respect of interest earned from investments and deposits with co- operative bank. After filing the return of income electronically vide acknowledgement no. 409387900141023, assessee was required to 3 ITA No. 6460/Mum/2025 Shelter Co-operative Housing Society Ltd.
A Y 2023-24 complete the process of verification through Adhar OTP. In this regard, assessee submitted that despite repeated attempts, it did not receive the Adhar OTP and therefore, electronic verification of the return could not be completed.
3.1. Owning to non-receipt of Adhar OTP due to technical issues, assessee moved ahead by adopting alternative mode of verification by downloading the Income-tax return verification form i.e. ITR-V from the Income-tax portal. Assessee dispatched this duly signed ITR-V form in physical mode to CPC, Bengaluru. It was sent through ordinary post on 18.10.2023. Subsequently, CPC, Bengaluru processed the return of the assessee u/s. 143(1) vide its intimation dated 17.01.2024. In the said intimation issued u/s. 143(1), date of filing of return by the assessee is taken on record as 23.11.2023 instead of 14.10.2023 as claimed by the assessee. By taking the date of filing of return as 23.11.2023 which goes beyond the due date prescribed u/s. 139(1), claim of deduction u/s. 80P(2)(d) was denied, resulting in a demand raised on the assessee.
3.2. Assessee moved an application for rectification of mistake apparent from records under the provisions of Section 154 by asserting its claim that it had filed the original return within the prescribed due date and the delay, if any, is attributable to the postal department and to the technological glitches on the e-portal of the department. Since assessee was prevented from completing electronic verification through Adhar OTP and had to resort to physical verification by dispatching the ITR-V through post, according to it, it had dispatched the duly signed ITR-V in physical mode through ordinary post on 18.10.2023 which was within the prescribed due date of filing of return.
4 ITA No. 6460/Mum/2025Shelter Co-operative Housing Society Ltd.
A Y 2023-24
4. In the first appeal, claim of the assessee was denied and the disallowance was sustained. First appeal of the assessee was dismissed for which it is contented that such a dismissal is in violation of principles of natural justices since notice u/s. 250 fixing the date of hearing dated 06.08.2025 required the assessee to furnish written submission and provide documentary evidence to substantiate its claim of dispatching the acknowledgment on 18.10.2023 on or before 11.08.2025 by 2.30 pm. Thus, a very short window of time was allowed to the assessee to make good the required compliance. Assessee could not comply to this notice resulting in the denial of the claim, dismissing the appeal. Aggrieved, assessee is in appeal before the Tribunal.
4.1. Facts narrated above are reiterated before us. Reference was made to affidavit filed by the assessee which is placed on record, explaining the reasons for the alleged delay in filing of return by the assessee which CPC, Bengaluru has considered as filed on 23.11.2023 instead of 14.10.2023, resulting into denial of claim made u/s. 80P(2)(d). We have heard both the parties and perused the material on record. Assessee has corroboratively demonstrated the necessary steps taken by it for filing the return within the prescribed due date by placing the material in the paper book containing total 74 pages.
4.2. In the facts and circumstances as discussed above, the delay alleged by CPC, Bengaluru for want of verification of the return uploaded by the assessee on 14.10.2023, is condoned by taking into account the fact of dispatch of physical ITR-V by the assessee through post. It is evident that the physical ITR-V was received by CPC, Bengaluru, since it has processed the return filed by the assessee which otherwise in its absence, would not have been possible. Accordingly, we direct to consider the date of filing of return within the prescribed due date u/s.
5 ITA No. 6460/Mum/2025Shelter Co-operative Housing Society Ltd.
A Y 2023-24 139(1). We thus, remit the matter to the file of ld. Jurisdictional Assessing Officer (JAO) for the limited purpose of verification of the claim made by the assessee u/s. 80P(2)(d) on account of interest earned from investment/deposit with co-operative banks. In this regard, assessee be given reasonable opportunity of being heard to substantiate and explain its claim by furnishing corroborative documentary evidence. Ld. JAO is directed to verify the same and allow the claim in accordance with the provisions of the Act. Accordingly, grounds raised by the assessee in this regard are allowed for statistical purposes.
5. In the result, appeal of the assessee is allowed for statistical purposes.
Order is pronounced in the open court on 23.03.2026 Sd/- Sd/-
(Beena Pillai) (Girish Agrawal)
Judicial M ember Accountant Member
Date d: 23.03. 2026
Divya Ramesh Nandgaonkar
Stenographer
Copy to :
1. The Appellant
2. The Respondent
3. DR, ITAT, Mumbai
4. Guard File
5. CIT
BY ORDER,
(Dy./Asstt. Registrar)
ITAT, Mumbai