APARAJITHA DYNAMIC SYNERGIES PVT. LTD.,MADURAI vs. DCIT, CORP. CIRCLE,, MADURAI

The brief facts of the case are that the assessee is an individual engaged in the business of wholesale and retail trading. He filed his return of income on 29.09.2018, declaring total income at ‘Nil’. The A.O, in the order passed under section 143(3) of the Act made an addition of Rs. 1,60,20,165/- by disallowing the assessee’s claim of deduction under section 80JJAA of the Act (Chapter VI-A). Aggrieved by the said disallowance, the assessee preferred an appeal before the Ld. CIT(A). The Ld. CIT(A) confirmed the disallowance on the ground that the assessee had not made any submission or produced evidence to substantiate the claim, both during the assessment and appellate proceedings. The Ld. CIT(A) has noted that although the assessee cited the difficulties faced during the Covid-19 pandemic as a reason for non-compliance, no supporting material or justification was furnished even before the Ld. CIT(A). Accordingly, the disallowance made by the A.O was confirmed.

At the outset, the Ld. Authorized Representative (A.R) for the assessee submitted that due to the prevailing Covid-19 pandemic situation, the assessee was unable to properly respond to notices or furnish supporting evidence during the assessment and appellate proceedings. The Ld. A.R therefore prayed that one more opportunity may kindly be granted to the assessee to substantiate his claim before the A.O.

On the other hand, the Ld. Departmental Representative (D.R) relied upon the orders of the lower authorities.

We have heard the rival submissions and perused the material available on record. On perusal of the order of the Ld. CIT(A), it is observed that the disallowance was upheld solely on the ground that the assessee had not made any submission or produced evidence during the appellate proceedings. Before us, the Ld. A.R reiterated that the assessee could not comply due to the Covid-19 pandemic. In the interest of justice, and keeping in view the principles of natural justice, we are of the considered opinion that the assessee deserves one more opportunity to substantiate the claim before the A.O. Accordingly, we set aside the impugned order and remit the matter back to the file of the A.O for denovo adjudication in accordance with law. The assessee is directed to appear before the A.O on the date of hearing without fail and furnish complete details and supporting evidence for proper adjudication of the claim.

In the result, the appeal filed by the assessee is allowed for statistical purposes.