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TMI Blog2024 (7) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the 1961 Act. Reference is drawn to Article 265 of the Constitution of India. Reference is also drawn to CBDT circular No. 14 of 1955 , dated 11.04.1955. The mandate is to assessee correct income and to allow correct deductions , so that correct taxes can be collected. The departmental officers are duty bound to follow the above mandate. If there is a procedural lapse, the department should not take advantage of the same and collect more taxes than what is legitimately due . The assessee return of income was processed by CPC u/s. 143(1) and the claim of deduction was disallowed. It is true that the assessee has not filed any appeal against the intimation u/s. 143(1) issued by CPC but the assessee has filed rectification application u/s. 154. The doors of justice cannot be shut merely on technicalities. It is equally true that the assessee has declared taxable income to be Nil in the return of income filed with the Department after claiming deduction of Rs. 7,88,092/-. The claims and contentions of the assessee both on legal as well factual aspects requires verification by the authorities below. This in the interest of justice, remanding the matter back to the file of ld. CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT Act against the intimation u/s 143(1) passed by the Lrd. Assessing Authority. Since the mistake was apparent from the record appellant has filed rectification application u/s 154 as there is no other remedial legal way-out. Hence the appellant prays that Rs. 782092/- to be allowed to be claimed as deduction u/s 80P of the Income Tax Act. 6. The appellant craves leave to add, alter or amend any of the grounds of appeal either before or at the time of hearing of the appeal. 3. The brief facts of the case are that the assessee filed return of income declaring gross total income of Rs. 7,82,092/- on 28th August 2018 u/s. 139 of the Act for the impugned assessment year. The assessee claimed deduction under Chapter VIA of the Act to the tune of Rs. 7,82,092/- and the net income declared by assessee being chargeable to tax was Nil. However, CPC processed the return of income vide order dated 12th July, 2019 u/s. 143(1) of the Act, wherein the deduction allowed under Chapter VIA was not allowed by Revenue to the assessee and the income chargeable to tax was computed at Rs. 7,82,092/-, vide intimation u/s 143(1) dated 12.07.2019. 4. Aggrieved, the assessee filed first rectification appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... second rectification was filed by the assessee u/s 154 on 17.12.2019 which was also rejected on 06.01.2020. The assessee pleaded that the assessee be assessed in the status of Co-operative society and the benefit u/s 80P be granted to the society. The assessee also enclosed computation of income as well filed Audited Profit and Loss account and Balance Sheet along with the audit report with CIT(A). The assessee also submitted that Assessing Officer ought to have assessed the assessee in the status of the Cooperative Society. The assessee also submitted that the AO ought to have given notice u/s. 139(9) of the Act and ought to have given opportunity to assessee to remove the defects. The assessee submitted that all the expenses which are exclusively incurred for the appellant be allowed. The CIT(A) dismissed the appeal of the assessee on the ground that the assessee has not filled the schedule in the return of income for claiming deduction u/s 80P properly, and hence it could not be said that there is any mistake apparent from record vis- -vis intimation order issued by the AO u/s 143(1) of the 1961 Act. The ld. CIT(A) observed that the assessee has not filed any appeal against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fidavit. The assessee claimed that the Authorized Representative who was Representing the assessee before the ld. CIT(A) never informed the assessee about the order passed by ld. CIT(A) dismissing the appeal of the assessee, and when papers were returned by the said counsel, the assessee came to know that the order has been passed by the CIT(A) dismissing the appeal filed by the assessee, and immediately coming to know that the appeal of the assessee is dismissed, the assessee has claimed to have appointed another counsel who has filed the appeal of the assessee. I have observed that there is no malafide on the part of the assessee in filing this appeal belated with Tribunal. The assessee has shown reasonable and sufficient cause in filing this appeal belatedly with Tribunal and assessee is not likely to gain anything by filing this appeal belated with Tribunal. Under the facts and circumstances of the case, I am of the considered view that the delay in filing this appeal belatedly by the assessee with ITAT beyond the time provided u/s 253(2) needs to be condoned, and I condone the delay and proceed to adjudicate this appeal on merit. When technicalities are pitted against the subs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Association of person . The ld. Counsel for the assessee was given liberty to file written synopsis on the claim of deduction filed u/s 80P, copy of application filed u/s 154, copy of Audit Report and computation of income but the assessee has chosen not to file the above details. 8. I have considered the contention of both the parties and perused the material on record. I have observed that the assessee has claimed itself to be a housing co-operative society which is engaged in the maintenance of the society, but the department has assessed the assessee as AOP. The assessee has filed before me, copy of Audited Profit and Loss Account, which shows break up of the receipts which shows that the assessee has received Rs. 5,88,000/- as maintenance income, Rs. 1,00,000/- as development charges, Rs. 50,000/- as transfer fees income, and then there are miscellaneous income of Rs. 17,900/-, income from Kesar Vatav of Rs. 820, interest from saving bank account of Rs. 25,372/-. I have observed from the audited Profit and Loss Account that the assessee has also claimed to have incurred expenditure to the tune of Rs. 10,88,713/-. I have also observed that the assessee has filed return of inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... take advantage of the same and collect more taxes than what is legitimately due. The assessee return of income was processed by CPC u/s. 143(1) and the claim of deduction was disallowed. It is true that the assessee has not filed any appeal against the intimation u/s. 143(1) issued by CPC but the assessee has filed rectification application u/s. 154. The CPC itself has stated in rectification order dated 06.01.2020 as under: As seen from the e-filed return of income and rectification filed by you. It is found that you have not correctly filled Sch. VIA, for claiming the deduction u/s. 80P. The system has computed the allowable deduction under chapter via, from the details entered. -The other reason for non-allowance of deduction u/s 80P is, the same is not allowable for status other than co-operative society . Further, the said deduction is allowable only on the balance income from business available, after set off of the current year and brought forward losses. -Further The deduction u/s 80P(2)(a)(i) to (vii) will be allowed to the extent of non speculative and non specified business income. -The deduction u/s 80P(2)(d) will be allowed to the extent of interest Dividend income men ..... X X X X Extracts X X X X X X X X Extracts X X X X
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