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Facts
The assessee's appeal for AY 2018-19 arose against a CIT(A) order that upheld the disallowance of a deduction claim of Rs. 25,67,209. The disallowance was made because the assessee claimed deduction under Section 80P(2)(f) instead of Section 80P(2)(a)(i).
Held
The Tribunal noted that the impugned sum represented the assessee's interest income. However, Section 80P(2)(f) was not applicable as the assessee was not engaged in the specified activities. The Tribunal directed the Assessing Officer to re-examine the Section 80P deduction claim.
Key Issues
Whether the assessee can claim deduction under Section 80P(2)(f) when its activities do not correspond to the said section, and if re-examination of the claim by the Assessing Officer is warranted.
Sections Cited
143(3), 80P(2)(f), 80P(2)(a)(i)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
Asstt. Year : 2018-19 Department of Irrigation Vs CIT(A)/NFAC Cooperative Thrift & Credit Society Income Tax Officer, Ltd., Room No. 11 & 12, Wing No. Ward-30(5), 3, R. K. Puram, Ground Floor, West New Delhi Block, New Delhi-110066 (APPELLANT) (RESPONDENT) PAN No. AAAAD9303L Assessee by: Sh. Abdullah Mustaqueem, Adv. Revenue by : Sh. Sudeep Dabas, Sr. DR Date of Hearing: 09.07.2025 Date of Pronouncement: 09.07.2025 ORDER
This assessee’s appeal for Assessment Year 2018-19 arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2024-25/1073627177(1) dated 24.02.2025, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
It emerges during the course of hearing with the able assistance coming from both the parties that the learned lower authorities have disallowed/added the assessee’s deduction claim amounting to Rs.25,67,209/- in the CPC’s section 143(1) processing dated 12.07.2019 and upheld in the lower appellate discussion for the precise reason that it had raised a claim of Department of Irrigation Cooperative Thrift & Credit Society Ltd. section 80P(2)(f) than that u/s 80P(2)(a)(i). The Revenue’s vehement contention accordingly is that once the assessee has specifically opted for the above deduction u/s 80P(2)(f), it is estopped from changing the head thereof to section 80P(2)(a)(i).
I have given my thoughtful consideration to the assessee’s pleadings all along and the Revenue’s foregoing vehement contentions. There is no dispute between the parties that the impugned sum represents assessee’s interest income derived from both it’s members as well as alleged parking of surplus funds in FDRs etc. Be that as it may, the fact remains that section 80P(2)(f) does not admittedly apply in it’s case once it is not engaged in the corresponding specified activities. It is thus an instance of wrong “ticking” of the prescribed column in the return committed at the assessee’s behest. It is thus deemed appropriate in the larger interest of justice to direct the learned assessing authority to examine the assessee’s section 80P deduction claim afresh, within three effective opportunities subject to a rider that the assessee shall plead and prove the case at his own risk and responsibility, in consequential proceedings. Ordered accordingly.