2022 (9) TMI 159 - AT - Income Tax

Deduction u/s.80P - Denial of deduction as assessee did not furnish the renewal certificate - CIT(A) observed that the renewal license filed by the assessee and the consequential renewal certificate did not pertain to the period of previous year relevant to the assessment year under consideration - HELD THAT - As AR submitted that such certificate was furnished before the ld. CIT(A) which skipped his attention and prayer was made that the matter may be sent back to the AO for examining necessary renewal certificate and the availability of deduction u/s.80P. No serious objection was taken by the ld. DR. In view of the above factual position, set-aside the impugned order and remit the matter to the file of the AO for deciding afresh the granting or otherwise of the deduction u/s.80P after allowing reasonable opportunity of hearing to the assessee. Assessee appeal is allowed for statistical purposes.

Summary

Issues:
Appeal against non-granting of deduction u/s.80P of the Income-tax Act, 1961 for the assessment year 2015-16.

Analysis:
The appeal was filed by the assessee against the order of the CIT(A)-2, Nashik regarding the denial of deduction u/s.80P. The assessee had declared total income of Rs.76,510/- and claimed deduction u/s.80P. However, during the assessment proceedings, the assessee failed to provide documentary evidence to support the deduction claimed. Consequently, the Assessing Officer disallowed the deduction amounting to Rs.14,64,987/-. The assessee later submitted additional evidence before the CIT(A) in support of the deduction, but the CIT(A) noted that the renewal documents did not correspond to the relevant assessment year. Consequently, the CIT(A) upheld the disallowance of the deduction u/s.80P, leading the assessee to appeal to the Tribunal.

Upon reviewing the case, the Tribunal found that the denial of deduction by the CIT(A) was primarily due to the absence of the renewal certificate. The assessee contended that the certificate was indeed submitted before the CIT(A), but it was overlooked. The Tribunal, considering this discrepancy, decided to set aside the CIT(A)'s order and remit the matter back to the Assessing Officer for reevaluation. The Tribunal instructed the AO to reexamine the availability of deduction u/s.80P after providing a fair opportunity for the assessee to present their case.

Consequently, the Tribunal allowed the appeal for statistical purposes, indicating that the matter was being sent back to the AO for a fresh decision on the deduction u/s.80P. The order was pronounced in the Open Court on 1st September 2022.