My society filed its return only in response to a 148 notice. Can it still claim 80P?
No. Section 80AC(ii) makes filing by the s.139(1) due date a condition precedent for deductions under Part C of Chapter VI-A, which includes s.80P, and a return filed pursuant to a s.148 notice does not cure the default.
Decided by the ITAT (ITAT Bangalore — Soundararajan K (Judicial Member) and Balakrishnan S (Accountant Member); ITA No. 84/Bang/2026; assessment year 2018-19) on 2026-06-11, reported as ITA No. 84/Bang/2026 (ITAT Bangalore); assessment year 2018-19. It bears on section 80P, section 80AC, section 80AC(ii), section 139(1), section 148 of the Income Tax Act 1961, in Co-operative Societies and Deductions & Disallowances matters.
A revenue decision, and the one the department cites against every late-filing society for assessment year 2018-19 onwards. Note what it does not do: the society argued that s.80P is beneficial legislation to be read liberally, and the Bench never answered the argument, resting its order on the plain terms of s.80AC(ii) alone. Know it before advising a society to file in a reassessment in the hope of reviving the claim.
Binding on the AO and CIT(A) within the Tribunal's jurisdiction. Persuasive elsewhere.
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For assessment year 2018-19 the co-operative society did not file a return by the due date under s.139(1). Reassessment was initiated and a notice under s.148 was issued on 31 March 2022. The society filed a return on 29 April 2022 in response to that notice, claiming a deduction of Rs. 83.89 lakh under s.80P.
The appeal was dismissed and the deduction denied. It was admitted and undisputed that no return had been filed under section 139(1) for the year. Section 80AC as amended with effect from assessment year 2018-19 requires a return under section 139(1) as a condition of any deduction under the Chapter VI-A heading 'C.—Deductions in respect of certain incomes', which is where section 80P sits, and a return filed belatedly in response to a notice under section 148 does not satisfy that condition. The Bench accordingly held the society not entitled to the deduction of Rs. 83,89,567 claimed under section 80P and dismissed the grounds.
The Bench's findings occupy three short paragraphs and cite no authority. At para 7 it recorded that it was admitted and undisputed that the assessee had not filed a return of income under section 139(1) for the year, and set out the text of section 80AC as amended with effect from assessment year 2018-19. At para 8 it held that under section 80AC(ii) the assessee has to file his return under section 139(1) to claim the benefit of a deduction under the heading 'C.—Deductions in respect of certain incomes'; that here the return was filed not by the due date but belatedly in response to a notice under section 148, on 29 April 2022; and that in those circumstances the society is not entitled to the deduction under section 80P. At para 9 the appeal was dismissed. The society had argued that section 80P is a beneficial provision to be interpreted liberally, but the Bench did not address that argument at all.
In these circumstances, we are of the opinion that the assessee is not entitled for deduction under section 80P of the Act for the claim made in the returns filed under section 148 of the Act on 29.04.2022 for the AY 2018-19.
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Handle my notice → Ask a CA on WhatsAppNo. Section 80AC(ii) makes filing by the s.139(1) due date a condition precedent for deductions under Part C of Chapter VI-A, which includes s.80P, and a return filed pursuant to a s.148 notice does not cure the default. This was decided by the ITAT (ITAT Bangalore — Soundararajan K (Judicial Member) and Balakrishnan S (Accountant Member); ITA No. 84/Bang/2026; assessment year 2018-19) and bears on section 80P, section 80AC, section 80AC(ii), section 139(1), section 148 of the Income Tax Act 1961. It is reported as ITA No. 84/Bang/2026 (ITAT Bangalore); assessment year 2018-19. A revenue decision, and the one the department cites against every late-filing society for assessment year 2018-19 onwards. Note what it does not do: the society argued that s.80P is beneficial legislation to be read liberally, and the Bench never answered the argument, resting its order on the plain terms of s.80AC(ii) alone. Know it before advising a society to file in a reassessment in the hope of reviving the claim. If it applies to you, the first step is this: Confirm the s.139(1) due date and whether the original return met it before arguing anything else.
For assessment year 2018-19 the co-operative society did not file a return by the due date under s.139(1). Reassessment was initiated and a notice under s.148 was issued on 31 March 2022. The society filed a return on 29 April 2022 in response to that notice, claiming a deduction of Rs. 83.89 lakh under s.80P. The matter was decided on 2026-06-11 by the ITAT (ITAT Bangalore — Soundararajan K (Judicial Member) and Balakrishnan S (Accountant Member); ITA No. 84/Bang/2026; assessment year 2018-19). On those facts the ITAT held as follows. The appeal was dismissed and the deduction denied. It was admitted and undisputed that no return had been filed under section 139(1) for the year. Section 80AC as amended with effect from assessment year 2018-19 requires a return under section 139(1) as a condition of any deduction under the Chapter VI-A heading 'C.—Deductions in respect of certain incomes', which is where section 80P sits, and a return filed belatedly in response to a notice under section 148 does not satisfy that condition. The Bench accordingly held the society not entitled to the deduction of Rs. 83,89,567 claimed under section 80P and dismissed the grounds.
The Bench's findings occupy three short paragraphs and cite no authority. At para 7 it recorded that it was admitted and undisputed that the assessee had not filed a return of income under section 139(1) for the year, and set out the text of section 80AC as amended with effect from assessment year 2018-19. At para 8 it held that under section 80AC(ii) the assessee has to file his return under section 139(1) to claim the benefit of a deduction under the heading 'C.—Deductions in respect of certain incomes'; that here the return was filed not by the due date but belatedly in response to a notice under section 148, on 29 April 2022; and that in those circumstances the society is not entitled to the deduction under section 80P. At para 9 the appeal was dismissed. The society had argued that section 80P is a beneficial provision to be interpreted liberally, but the Bench did not address that argument at all. In the words reproduced by the source cited on this page: "In these circumstances, we are of the opinion that the assessee is not entitled for deduction under section 80P of the Act for the claim made in the returns filed under section 148 of the Act on 29.04.2022 for the AY 2018-19."
It was decided by the ITAT on 2026-06-11 and is reported as ITA No. 84/Bang/2026 (ITAT Bangalore); assessment year 2018-19. Binding on the AO and CIT(A) within the Tribunal's jurisdiction. Persuasive elsewhere. A Tribunal decision binds the assessing officer and the Commissioner (Appeals) within that Tribunal's jurisdiction, and is persuasive before other benches. It is not binding on a High Court, and a contrary co-ordinate bench decision will be argued against you, so check whether the point has been taken the other way before you build a reply around it. On section 80P, section 80AC, section 80AC(ii), section 139(1), section 148, the practical question is whether the facts of your own notice match the facts of this case closely enough for the same rule to apply.
It helps the department, and it appears in this library for that reason — you need to know what the Assessing Officer will cite against you. The appeal was dismissed and the deduction denied. It was admitted and undisputed that no return had been filed under section 139(1) for the year. Section 80AC as amended with effect from assessment year 2018-19 requires a return under section 139(1) as a condition of any deduction under the Chapter VI-A heading 'C.—Deductions in respect of certain incomes', which is where section 80P sits, and a return filed belatedly in response to a notice under section 148 does not satisfy that condition. The Bench accordingly held the society not entitled to the deduction of Rs. 83,89,567 claimed under section 80P and dismissed the grounds. It arises in Co-operative Societies and Deductions & Disallowances matters, on section 80P, section 80AC, section 80AC(ii), section 139(1), section 148 of the Income Tax Act 1961, and was decided by ITAT Bangalore — Soundararajan K (Judicial Member) and Balakrishnan S (Accountant Member); ITA No. 84/Bang/2026; assessment year 2018-19. Before relying on it, read the source linked on this page and check whether it has since been distinguished, overruled or overtaken by an amendment to the Income Tax Act. In practice the steps that follow from it are these. For AY 2018-19 onwards, do not build the reply on s.80P being beneficial legislation — that argument was rejected here. Where the year is earlier than AY 2018-19, take the point that the timely-filing condition did not then extend to s.80P.
The judgment itself could not be reached, so no check was possible. The order could not be located in a subscription case-law database — searches on the society's name, on the distinctive part of it, and on the parallel decision the entry names all returned nothing — so no citator check is possible and no later treatment could be looked for. The statutory position the result turns on has been checked against the Acts module and is as stated: section 80AC of the Income-tax Act 1961 provides that for an assessment year commencing on or after 1 April 2018, a deduction admissible under any provision of Chapter VI-A under the heading 'C.—Deductions in respect of certain incomes' — which is where section 80P sits — is not allowed unless the assessee furnishes a return for that assessment year on or before the due date specified under section 139(1). For assessment years from 1 April 2006 but before 1 April 2018 the condition reached only sections 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID and 80-IE, so it did not touch section 80P. The 1961 Act now stands repealed; the corresponding provision in the Income-tax Act 2025 is section 122. No source could be cited for that finding. Checking whether an authority still stands matters as much as knowing what it held: a decision may be overruled on one point and survive on another, or the provision it interprets may have been amended since. Read the source and the editor's note on this page before relying on it in a reply to an Assessing Officer or in an appeal.
The order has now been read in full and the particulars are settled from it: ITAT Bangalore, ITA No. 84/Bang/2026, assessment year 2018-19, heard 1 June 2026 and pronounced 11 June 2026 — not 12 June 2026, which came from a secondary report — before Soundararajan K (Judicial Member) and Balakrishnan S (Accountant Member). The respondent on the cause title is the Deputy Commissioner of Income-tax, Circle-3(1)(1), Bangalore, and not the Income Tax Officer; the slug retains the earlier form. The Bench's findings run to three paragraphs, 7 to 9, and cite no authority. It did not answer the society's argument that section 80P is a beneficial provision to be interpreted liberally: it decided the appeal on the plain terms of section 80AC(ii) alone, so this order must not be cited as a rejection of the liberal-construction argument. On the law the result is a straight application of section 80AC as amended with effect from assessment year 2018-19: from that year the condition of filing by the section 139(1) due date extends to every deduction under Chapter VI-A heading C, which includes section 80P, whereas for years from 2006-07 to 2017-18 it reached only sections 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID and 80-IE. Read the decision as year-specific rather than as a general rule. One URL has been taken off the evidence list and the removal is recorded here: a taxguru page previously listed as corroboration reports Chillakuru Primary Agricultural Cooperative Society Ltd v. ITO (ITAT Hyderabad), a different case, and was never a report of this order. Chillakuru stays noted as an uncorroborated parallel decision to the same effect. The order is short and cites no authority. No law report citation for it was found, so no citator check is possible and whether the society has appealed is not known. This library shows the verification state of every entry openly. This entry has not yet been read in full by a chartered accountant. The summary reflects the sources listed on this page. Read the source before you rely on it in a reply to an Assessing Officer or in an appeal before the Commissioner (Appeals) or the Income Tax Appellate Tribunal.
The appeal was dismissed and the deduction denied. It was admitted and undisputed that no return had been filed under section 139(1) for the year. Section 80AC as amended with effect from assessment year 2018-19 requires a return under section 139(1) as a condition of any deduction under the Chapter VI-A heading 'C.—Deductions in respect of certain incomes', which is where section 80P sits, and a return filed belatedly in response to a notice under section 148 does not satisfy that condition. The Bench accordingly held the society not entitled to the deduction of Rs. 83,89,567 claimed under section 80P and dismissed the grounds.
TaxSphere, “Kassia Credit Co-operative Society v DCIT”, https://taxnotice.vittsphere.com/caselaw/case/kassia-credit-co-operative-society-v-ito-80ac/ (validity last checked 2026-08-19)
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