2021 (2) TMI 1064 - AT - Income Tax

Deduction u/s 80JJA - Disallowance of claim in absence of complete note on collection/processing and treatment of biodegradable waste and supporting evidence - HELD THAT - It is the submission of the assessee that given an opportunity, he is in a position to file the necessary details. Considering the totality of the facts of the case and in the interest of justice deem it proper to restore the issue to the file of the Ld. CIT(A) with a direction to grant one final opportunity to the assessee to submit the assessment orders for assessment year 2016-17 and 2017-18 and other documentary evidences as required by him for deciding the appeal. Ld. CIT(A) shall decide the issue as per fact and law after giving due opportunity of being heard to the assessee. Appeal filed by the assessee is allowed for statistical purposes.

Summary

Issues:
1. Delay in filing the appeal before the Tribunal.
2. Disallowance of claim u/s 80JJA of the Income Tax Act, 1961.

Delay in filing the appeal before the Tribunal:
The appeal filed by the assessee was directed against the order passed by Ld. CIT(A) relating to the assessment year 2015-16. There was a delay of 365 days in filing the appeal before the Tribunal. The assessee sought condonation of delay, stating that the AO had accepted the assessee's plea on a similar point of dispute in later years, leading to a genuine impression that the dispute in this case was amenable to rectification. The delay was attributed to bonafide reasons, with no sinister motivation. After considering the condonation application, the Tribunal condoned the delay and admitted the appeal for adjudication.

Disallowance of claim u/s 80JJA:
The assessee, an individual and director of a company, filed the return of income declaring total income. The AO disallowed a claim made by the assessee u/s 80JJA amounting to a specific sum, citing lack of complete note on collection/processing and treatment of biodegradable waste along with supporting evidence. In the appeal, the Ld. CIT(A) upheld the disallowance, noting the absence of documentary evidence to counter the AO's findings. The Tribunal, upon hearing both sides, observed that the AO disallowed the claim based on incomplete documentation. The assessee argued that the claim had been allowed in subsequent years by the AO. In the interest of justice, the Tribunal directed the issue to be restored to the file of the Ld. CIT(A) for granting one final opportunity to the assessee to submit necessary details, assessment orders for subsequent years, and other documentary evidence. The Ld. CIT(A) was instructed to decide the issue after providing a hearing to the assessee. The grounds raised by the assessee were allowed for statistical purposes, and the appeal was allowed accordingly.

In conclusion, the Tribunal addressed the delay in filing the appeal and the disallowance of the claim u/s 80JJA, ultimately allowing the appeal for statistical purposes and providing directions for further proceedings in the case.