Assessee, a co-operative society, filed its return claiming deduction under section 80P. However, it failed to file the return within the stipulated time. Consequently, the deduction was not allowed, and demand was raised through an intimation under section 143(1). It filed a condonation application under section 119 before the Chief Commissioner, which was pending; the Commissioner (Appeals), noting the pendency of the condonation application, dismissed the appeal while confirming the demand. The assessee filed a writ contending that it was mandatory for a co-operative society to undergo a statutory audit before claiming exemption, which caused delay in filing the return; the Chief Commissioner was to be directed to dispose of the condonation application expeditiously and, till then, recovery arising from the intimation under section 143 and the appellate order under section 250 was to be kept in abeyance. Further, if delay was condoned, the assessee was to be permitted to file return under section 139, and if not, the assessee could challenge the order. (AY. 2021-22)