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Facts
The assessee had claimed a deduction under section 80P of the Income Tax Act. The deduction was denied because the assessee had not filed the return of income within the prescribed due date.
Held
The Tribunal held that the assessee had filed a condonation of delay application for filing the return of income, which was pending. Therefore, the matter was restored to the AO to await the outcome of the condonation application.
Key Issues
Whether the CIT(A) was justified in confirming the disallowance of deduction under section 80P when the assessee had filed a condonation of delay application for the return of income.
Sections Cited
250, 139(1), 80AC, 80P
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI S.R. RAGHUNATHA
O R D E R
PER GEORGE GEORGE K, VICE PRESIDENT:
This appeal at the instance of the assessee is directed against order of the CIT(A), Chennai-20, dated 16.10.2024 passed under section 250 of the Income Tax Act, 1961, (hereinafter called ‘the Act’). The relevant Assessment Year is 2019-20.
The solitary issue that raised in this appeal is whether CIT(A) was justified in confirming disallowance of claim of deduction u/s.80P of the Act.
3. The reason for not granting the deduction u/s.80P of the Act was that assessee had not filed return of income within the due date prescribed u/s.139(1) of the Act and in view of section 80AC, the claim of deduction u/s.80P was denied. The Ld. AR submitted that assessee has filed condonation of delay application for condoning delay in filing return of income and same is pending consideration before DGIT (Investigation), Chennai. A copy of the application dated 24.12.2024 for condoning delay in filing of return of income is placed on record. The Ld.AR submitted in view of pendency of condonation of delay application, the issues raised in this appeal may be restored to the files AO to await outcome of condonation of application and direct AO thereafter to take a decision as regards claim of deduction u/s.80P of the Act.
The Ld.DR was duly heard.
We have heard rival submissions and perused material on record. The claim of deduction u/s 80P was denied for the reason that assessee has not filed return of income within due date prescribed. The assessee now before Tribunal has placed on record condonation of delay application, which is pending consideration. In view of the pendency of condonation application, we deem it appropriate to restore the matter to the files of AO. The AO is directed to await outcome of condonation application and shall take a decision as regards claim of deduction u/s.80P, if the delay in condonation of application was disposed off in favour of the assessee. The AO shall afford reasonable opportunity of being heard to the assessee before a decision is taken in the matter. It is ordered accordingly.
In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 26th February, 2025.