9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (12) TMI 346 - AT - Income TaxEligibility of deduction under section 80P(2)(a)(i) - CIT(A) holding that the status of the assessee is Cooperative Society and directing the Assessing Officer to allow deduction - Held that - For the assessment years under consideration, by following the decision of the Tribunal for the assessment years 2008-09 and 2010-11 ld. CIT(A) has directed the Assessing Officer to allow the deduction under section 80P(2)(a)(i) of the Act. The ld. DR could not controvert the above findings of the Tribunal or filed any higher Court decision having modified or reversed the findings of the Tribunal. Respectfully following the above decision of the Coordinate Bench of the Tribunal, we find no reason to interfere with the orders of the ld. CIT(A) on this issue and thus, the ground raised by the Revenue is dismissed for both the assessment years. Floating provision for NPA, loss on redemption of securities and bad debts written off claim - Held that - On perusal of the assessment order, we find that even though the assessee has not made claim of deduction in the return of income, the Department has taken the benefit of assessee s ignorance and rejected the claim made during the course of assessment proceedings. If the assessee is legally entitled to claim a deduction, in view of the directions given by the CBDT vide its Circular No. 14 XL-35 of 1955 date 11.04.1955, the Assessing Officer should have considered the genuineness of the claim and granted relief to the assessee which he is legally entitled to. However, in this case, during the course of assessment proceedings, the assessee has made the claims, which was not originally claimed in the return of income, but, the Assessing Officer has rejected the claim of the assessee since the assessee has not made such claim in the return of income. Under these circumstances, we direct the Assessing Officer to consider the claims of the assessee after verifying the record with regard to its admissibility, genuineness and decide the issues in accordance with law after allowing sufficient opportunities of hearing to the assessee. Accordingly, the ground raised by the assessee is allowed for statistical purposes.
Issues:
- Assessment of status of the assessee as a Cooperative Society for deduction under section 80P(2)(a)(i) of the Income Tax Act. - Adjudication of floating provision for NPA, loss on redemption of securities, and bad debts written off for the assessment year 2013-14. Analysis: 1. Assessment of status as a Cooperative Society: - Both Revenue and Assessee appealed against orders of the ld. Commissioner of Income Tax (Appeals) regarding the status of the assessee as a Cooperative Society for claiming deduction under section 80P(2)(a)(i) of the Act for the assessment years 2012-13 and 2013-14. - The Assessing Officer initially disallowed the deduction claimed by the assessee under section 80P of the Act, considering the assessee as a company. - The ld. CIT(A) directed the Assessing Officer to allow the deduction based on the status of the assessee as a Cooperative Society, following previous Tribunal orders. - The Revenue contended that the status of the assessee as a corporate entity makes it ineligible for the deduction under section 80P(2)(a)(i) of the Act. - The Tribunal, following previous decisions, upheld the status of the assessee as a Cooperative Society and allowed the deduction under section 80P(2)(a)(i) of the Act for the assessment years under consideration. 2. Adjudication of specific issues for the assessment year 2013-14: - The assessee raised concerns regarding the adjudication of floating provision for NPA, loss on redemption of securities, and bad debts written off for the assessment year 2013-14. - The ld. CIT(A) declined to address these issues due to perceived lack of tax implication. - The Tribunal observed that the Department rejected the claim made during assessment proceedings, even though the assessee had not originally claimed deductions in the return of income. - Relying on CBDT Circular No. 14 [XL-35] of 1955, the Tribunal directed the Assessing Officer to consider the genuineness of the claims and grant relief to the assessee if legally entitled, after verifying the admissibility and genuineness of the claims. In conclusion, the Tribunal upheld the status of the assessee as a Cooperative Society for claiming deduction under section 80P(2)(a)(i) of the Act, dismissing the Revenue's appeals and allowing the assessee's appeal for statistical purposes. The Tribunal also directed the Assessing Officer to reevaluate the specific issues raised by the assessee for the assessment year 2013-14, ensuring fair consideration of the claims made.
|
