2022 (10) TMI 717 - AT - Income Tax

Assessment u/s 144 - deduction u/s 80C - HELD THAT - The territorial jurisdiction of the assessee is not in Amritsar but in New Delhi, as per the claim of assessee. But before any of the authorities the assessee had not challenged its jurisdiction. Regarding deduction u/s 80C, the assessee had filed a copy of the receipt as proof of payment of PPF which is primarily showing the payment amount of Rs.70,000/-. In our opinion, the issue of the assessee should be further adjudicated by the ld. CIT(A). In view of these discussions, as also bearing in mind the entirety of the case, we deem it fit and proper to remit the matter to the first appellate authority after giving an opportunity of hearing, for adjudication of jurisdictional ground allowability of Section 80C of the Act in accordance with the law and by way of a speaking order. No other issue was challenged before the ITAT the order passed as per the terms indicated above. Appeal of the assessee is allowed for statistical purposes.

Summary

Issues:
1. Jurisdiction of Assessing Officer under section 144 of the Income Tax Act.
2. Allowability of deduction under section 80C claimed by the assessee.

Analysis:
1. The appeal was against the order of the ld. Commissioner of Income Tax (Appeals) confirming the order passed under section 144 of the Income Tax Act for the assessment year 2011-12. The assessee contended that the order passed by the Assessing Officer was illegal and unjust as the notice under section 148 was not served on the assessee. The jurisdiction of the Assessing Officer was challenged as the assessee was not residing in the territorial jurisdiction of Amritsar. The ITAT observed that the assessee did not challenge the jurisdiction during assessment or appeal proceedings. The ITAT remitted the matter to the first appellate authority for adjudication of jurisdictional grounds.

2. The deduction under section 80C, which was claimed by the assessee, was not allowed by the ld. CIT(A) due to the absence of documents. The assessee submitted proof of payment of Public Provident Fund (PPF) amounting to Rs.70,000. The ITAT opined that this issue should be further adjudicated by the ld. CIT(A). The matter was remitted back to the first appellate authority for a detailed examination of the allowability of the deduction under section 80C in accordance with the law.

Conclusion:
The ITAT allowed the appeal of the assessee for statistical purposes and remitted the matter to the ld. CIT(A) for a fresh adjudication on the jurisdictional ground and the allowability of the deduction under section 80C. The ITAT emphasized the importance of a speaking order by the first appellate authority in addressing these issues.