2022 (12) TMI 34 - AT - Income Tax

Deduction u/s 80P - claim dismissed due to non-filing the return on or before the due date of filing the return - claim in return although filed late on account of reasons beyond the control of assessee - HELD THAT - We find no infirmity in the impugned order confirming the disallowance of deduction claimed u/s. 80-P falling under Chapter VIA - A perusal of the copy of the application submitted with the office of the ld. Pr. CIT shows the same to be for condonation of delay in filing the return for the current year, and received by the said office on November 9, 2022. The same is in terms of the cited Circular and, therefore, is to be disposed by the ld. Pr. CIT within the stipulated period. As the assessee s application for condonation of delay in filing it s return is pending disposal as on date by the competent authority, we have little hesitation in accepting the assessee s plea for restoring the matter back to be decided in accordance with law, i.e., on merits, in case the delay in filing the return is condoned, else the assessment as made stands confirmed. We have in principle no hesitation in accepting the assessee s prayer, at the same time, we find no reason to set aside the assessment which is in accordance with law. We only consider it proper to restore the matter to the file of the first appellate authority for the purpose, i.e., to decide the issue of deduction u/s. 80-P on merits in the event of condonation of the delay in the furnishing of the return. It may do so by calling for a remand report in the matter from the AO, again, after hearing the assessee, or decide the matter itself after hearing both the sides before it. This shall also obviate the time limitation to which the assessment order would be otherwise subject.

Summary

Issues:
Appeal against CIT(A) order dismissing deduction under section 80P for late filing of return - Condonation of delay in filing return - Request for remitting matter back to AO for decision on merits.

Analysis:
The appeal was filed against the CIT(A) order dismissing the deduction claimed under section 80P due to the late filing of the return of income for AY 2018-19. The assessee contended that the return was filed after the due date and sought condonation of the delay based on a circular allowing such condonation where the claim amount does not exceed a specified limit. The Tribunal noted that the appeal was dismissed for non-filing the return on time. The Tribunal found no issue with the order confirming the disallowance of the deduction under section 80P. However, considering the pending application for condonation of delay, the Tribunal accepted the assessee's plea to remit the matter back for a decision on merits if the delay is condoned, maintaining the assessment otherwise in accordance with the law.

The Tribunal acknowledged the application for condonation of delay in filing the return, which was pending with the competent authority. In principle, the Tribunal agreed to restore the matter for a decision on merits if the delay is condoned, ensuring compliance with the law. The Tribunal decided to remand the matter to the first appellate authority for a decision on the deduction under section 80P based on the outcome of the pending condonation application. This approach aimed to address the issue effectively, either through a remand report from the AO or a decision by the appellate authority after hearing both parties, thus avoiding time limitations on the assessment order.

In conclusion, the Tribunal disposed of the appeal by restoring the matter to the first appellate authority for further consideration based on the pending condonation application. The Tribunal's decision aimed to ensure a fair and comprehensive assessment of the deduction under section 80P, balancing the need for compliance with the law and providing the assessee with an opportunity to present their case effectively.