2019 (2) TMI 1374 - AT - Income Tax

Condonation of delay - Filling of appeal manually - appeal of assessee rejected on the ground that it was not filed electronically but was filed manually - delay in filing appeals electronically - HELD THAT - Appeal of the assessee cannot be rejected on the ground that it was not filed electronically but was filed manually. In the instant case, the assessee has filed the appeals manually for the above said two years within the limitation period and the delay has occurred only in filing the appeals once again electronically. We are of the view that the delay in filing appeals electronically should not come in the way of rendering justice to the assessee. Accordingly, we condone the delay that occurred in filing the appeals electronically. Eligibility to deduction u/s 80P(2)(a)(i) - HELD THAT - The question of allowing deduction u/s 80P would arise only if the income is taxable. Further the AO has declined to examine the decision rendered by jurisdictional High Court. Hence the reasoning given by the AO to reject the claim of the assessee is not sustainable. The AO has also not given reasons for applying the provisions of sec.80P(4) of the Act in the hands of the assessee. Since the facts prevailing in the instant case require examination; since the scope of taxability of two streams of income of the assessee has also not been examined and since the AO has not given correct reasoning to reject the claim of the assessee, we are of the opinion that this issue requires fresh examination at the end of the AO.

Summary

Issues Involved:
1. Appeals filed for Assessment Years 2010-11 and 2013-14 dismissed on grounds of limitation.
2. Appeal filed for Assessment Year 2014-15 regarding deduction u/s 80P(2)(a)(i) of the Act.

Analysis:

Issue 1: Appeals filed for Assessment Years 2010-11 and 2013-14 dismissed on grounds of limitation:
- The appeals were dismissed by the learned CIT(A) due to being filed beyond the limitation period.
- The assessee had initially filed the appeals manually within the limitation period but later re-filed them electronically, causing a delay.
- The Co-ordinate Bench in a similar case ruled that appeals cannot be rejected solely for not being filed electronically if filed manually within the limitation period.
- The Tribunal condoned the delay in filing the appeals electronically and restored them to the CIT(A) for adjudication on merits.

Issue 2: Appeal filed for Assessment Year 2014-15 regarding deduction u/s 80P(2)(a)(i) of the Act:
- The AO held the income of the assessee as taxable under the Act based on an amendment in the definition of "income" under sec.2(24) and sec.80P(4) disallowance.
- The Ld CIT(A) dismissed the appeal by relying on a Supreme Court decision without examining the specific facts of the case.
- The assessee argued that the facts of their case differed from the precedent relied upon, as they provided credit facilities only to members entitled to profit participation.
- The Tribunal noted that the AO did not properly examine the facts and did not provide valid reasons for disallowing the deduction u/s 80P.
- The Tribunal set aside the CIT(A) order and directed the AO to re-examine the claim of the assessee in light of the specific circumstances of the case.

In conclusion, the Tribunal allowed all appeals of the assessee for statistical purposes, emphasizing the need for proper examination of facts and adherence to legal provisions in tax matters.