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Facts
The Assessing Officer (AO) denied the appellant company's claim under section 80IB of the Income Tax Act due to a lack of response to queries. This denial was upheld by the CIT(A) despite multiple opportunities provided to the appellant. The appellant argued that detailed submissions were made.
Held
The Tribunal remanded the issue back to the CIT(A) with a direction to consider the detailed submissions filed by the appellant. The CIT(A) is instructed to provide a reasonable opportunity to the appellant to present all relevant details.
Key Issues
Whether the CIT(A) erred in confirming the disallowance under Section 80IB without considering the detailed submissions made by the appellant, especially when the submissions were made before the assessment order was issued.
Sections Cited
80IB, 80IB-1
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, Mumbai “A” Bench, Mumbai.
Before: Smt. Kavitha Rajagopal (JM) & Shri Omkareshwar Chidara (AM)
In this appeal, the Ld. AO denied section 80IB of the Income Tax Act claim of appellant company as there was no response to the queries raised by him. During the hearing before Ld. CIT(A) also, there is no response even though three opportunities were provided to the appellant and hence the appeal of appellant was dismissed.
Aggrieved by the orders of Ld. AO/Ld. CIT(A) an appeal was instituted by appellant before ITAT with the following grounds :- 1. The National Faceless Appeal Centre has erred in law, facts and circumstances of the case by confirming the disallowance of Rs. 52,81,624/- u/s 80IB-1 of the Income Tax Act, 1961.
2. The National Faceless Appeal Centre has erred in law, facts and circumstances of the case by confirming the disallowance of Rs. 52,81,624/- u/s. 80IB-1 of the Income Tax Act, 1961 on the ground that no response was filed till 06.04.2021 and ignoring the fact that a detailed response was submitted by the Appellant Firm on 06.04.2021.
2 M/s. Aishwarya Avant Builders LLP (Now known as Aishwarya Avant Builders Pvt. Ltd.)
The National Faceless Appeal Centre has erred in law, facts and circumstances of the case by confirming the disallowance of Rs. 52,81,624/- u/s 80IB-1 of the Income Tax Act. 1961 and ignoring the fact that the detailed submission against the show-cause notice was submitted before issue of the Assessment order.
4. Your Appellant craves leave to add to, alter, amend, delete and/or modify the above grounds of appeal on or before the final date of hearing.
3. During the hearing, the Ld. AR of the appellant has contended that all details were submitted to the Ld. CIT(A) on 6.4.2021 after four years, the Ld. CIT(A) passed the order confirming the addition of Ld. AO without considering the detailed submissions as above.
Ld. DR relied on the orders of Ld. AO and Ld. CIT(A).
Heard both sides. The issue is remanded to the file of Ld. CIT(A) with the direction to consider the detailed submissions filed by appellant and pass an order accordingly. Needless to say that reasonable opportunity should be given to the appellant to submit all the details relating to the issues mentioned in the assessment order.
The appeal of appellant is allowed for statistical purposes.
Order pronounced in the open Court on 29/08/2025.