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Facts
The assessee, a Co-operative Society, claimed a deduction of Rs. 1,46,67,558/- under Section 80P(2)(a)(i) of the Income Tax Act for AY 2020-21. Due to technical errors, the assessee's submissions could not be considered by the CIT(A), and the AO passed a best judgment assessment. The assessee could not appear before the AO but submitted details to the CIT(A).
Held
The Tribunal noted that the CIT(A) could not consider the assessee's submissions due to technical errors in opening the e-filed documents. The Tribunal, in view of the circumstances, decided to restore the issue on merits to the file of the Jurisdictional Assessing Officer for denovo assessment.
Key Issues
Whether the assessee is eligible for deduction under Section 80P(2)(a)(i) and whether the CIT(A)'s order upholding the best judgment assessment is sustainable in light of technical errors preventing consideration of assessee's submissions.
Sections Cited
250, 144, 144B, 80P(2)(a)(i), 142(1), 80P
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, B BENCH,
Before: Dr. MANISH BORAD & SHRI VINAY BHAMORE
Assessee by : Shri N.A. Kulkarni Revenue by : Shri Umesh Phade- Addl.CIT Date of hearing : 24.11.2025 Date of pronouncement : 28.11.2025 आदेश/ORDER
PER DR.MANISH BORAD, ACCOUNTANT MEMBER :
This appeal at the instance of the assessee is directed against the order of Ld. CIT(A) NFAC, Delhi dated 08.10.2025 framed u/s 250 of the Income Tax Act, 1961 for A.Y. 2020-21 which is arising out of order passed u/s 144 r.w.s. 144B of the Act dated 26.09.2022.
At the outset Ld. Counsel for the assessee submitted that the only issue of this appeal is disallowance of deduction claimed by the assessee u/s 80P(2)(a)(i) of the Act at Rs. 1,46,67,558/- He submitted that the assessee could not appear before Ld. Assessing Officer (AO) but duly submitted the details before Ld. CIT(A). However the same has not been considered on account of technical error due to which the files E-filed by the assessee to Ld. CIT(A) could not be opened. He therefore submitted that since the assessee has all relevant details to prove that the assessee is eligible for deduction u/s 80P of the Act he prayed for restoring the issue on merits to the file of Jurisdictional Assessing Officer (JAO). Ld. Departmental Representative (DR) did not object to the request made by Ld. Counsel for the assessee.
We have heard rival contentions and perused the record placed before us. We observe that the assessee is a Co- operative Society and income of Rs. 1,25,930/- declared in the return of income for A.Y. 2020-21 filed on 23.11.2020 and claimed deduction u/s 80P(2)(a)(i) of the Act at Rs. 1,46,67,558/-
We observe that the notice u/s 142(1) of the Act on 29.11.2021 and 03.03.2022 issued during the Covid-19 Pandemic period and very less time was given to file the replies. We observe that Ld. AO has passed a best judgement assessment. We also observe that assessee had furnished various details on E-Portal to Ld. CIT(A) against addition made by the Ld. AO.
We also note that due to technical error, Ld. CIT(A) could not look into the submission filed by the assessee as the PDF files and Zip Files could not be opened due to technical error. The assessee has also filed the details of Co-operative Society, its registration, financial statements in various Paper Books dated 11.11.2025. There being no strong objection from the side of Ld. Departmental Representative (DR) and on due consideration of the details filed before us and also considering the facts and circumstances of the case we deem it appropriate to remit back the issues raised on merits in the instant case back to the file of Ld. Jurisdictional Assessing Officer (JAO) for denovo assessment and to decide in accordance with law. Needless to mention that proper opportunity of hearing shall be granted to the assessee. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 28th day of November, 2025.