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Facts
The assessee was denied a deduction under Section 80IA for delay in filing the Income Tax Return within the statutory time limit. An application for condonation of delay was filed, but its outcome was awaited. The assessee also claimed that a proper opportunity was not granted by the lower authorities.
Held
The Tribunal held that the assessee was denied deduction under Section 80IA due to a delay in filing the return. While acknowledging the pending condonation of delay application and the potential lack of proper opportunity, the Tribunal restored the issue to the file of the CIT(A) for necessary adjudication.
Key Issues
Whether the disallowance of deduction under Section 80IA for delay in filing the return is justified, and whether the assessee was granted proper opportunity for re-adjudication.
Sections Cited
80IA, 143(1), 139(4), 80AC, 234B, 156, 250(6), 119
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, B BENCH, PUNE
Before: Dr. MANISH BORAD & SHRI VINAY BHAMORE
Assessee by : Smt. Deepa Khare Revenue by : Shri A.D. Kulkarni, Additional CIT Date of hearing : 02.04.2025 Date of : 04.04.2025 pronouncement आदेश/ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
This appeal at the instance of assessee for A.Y. 2022-23 is directed against the order of Ld.ADDL/JCIT(A), Jodhpur dated 27.02.2024
Assessee has raised following grounds of appeal:-
1. Whether on facts and in circumstances of the case, the disallowance of deduction us 80-1A of Rs 67,25,256/- can be made as adjustment u/s 143(1) as a permissible adjustment falling within the scope of adjustment when the same is debatable in view of the decisions of different court and indicating that two views are possible.
2. On the facts and in the circumstances of the case and in law the CIT(A) was not justified in rejecting the claim of deduction of Rs. 67,25,256/- made under section 8014 when the return of income was filed u/s 139(4) that was a due compliance within the provisions of Section 80AC 3. On the facts and in the circumstances of the case and in law the CIT(A) was not justified in rejecting the claim of deduction of Rs. 67.25,256/- made under section 801A, Considering the genuine hardship faced the appellant firm the addition made rejecting the claim under section 801A be deleted.
4. On the facts and in the circumstances of the case and in law there is only a short delay of fifteen days in submitting the Return of Income along with Form 10CCB for good and valid reasons. There was no cause to disallow the claim of deduction made under section 801A and there remains pending against the appellant if the same is accepted it be held accordingly. Addition of Rs. 67,25,256/- be deleted.
5. The leamed CIT(A) has not appreciated the facts of the case and the valid documents submitted during the course of assessment proceedings.
6. On the facts and in the circumstances of the case and in law and considering ments of the case and heavy demand raise at Rs. 33,82,500/- early hearing be granted to the appellant.
7. The learned CIT(A) has erred in charging interest u/sec 234B on the assessed income and accordingly appellant denies the levy of such interest in the demand raised u/s 156 of the Act.
The appellant prays that The intimation order u/s 143(1) confirmed by CIT(A) disallowing deduction claimed under 801A of chapter VIA of Rs. 67,25,250/- may please be deleted.
Appellant seeks, permission to add, alter, amend, modify, rectify, delete, withdraw the grounds of appeal and/or to take addition grounds as occasion may demand.
Sole grievance of the assessee is that deduction u/s 80IA has been denied for delay in filing the Income Tax Return by invoking section 80AC of the Act.
At the outset Ld. Counsel for the assessee stated that no proper opportunity was granted by Ld. CIT(A) and therefore an opportunity may please be granted for going before Ld. CIT(A)/ADDL/JCIT(A) for necessary re-adjudication. She also submitted that an application has been filed u/s 119 of the Act to Ld. PCCIT on 03.07.2024 for condonation of delay in filing of the return and outcome is awaited.
On the other hand Ld. DR has supported the orders of lower authorities.
6. We have heard rival contentions and perused the record placed before us. Assessee has been denied deduction u/s 80IA of the Act for delay in furnishing of Income Tax Return within the statutory time limit. Application for condonation of delay in filing of ITR has been filed to Ld. PCCIT u/s 119 of the Act but outcome is awaited. We also note that proper opportunity was not granted by Ld. First Authority. We therefore in the larger interest of justice and being fair to both the parties restore the issue raised on merits to the file of Ld. CIT(A) for necessary adjudication as contemplated u/s 250(6) of the Act. Assessee is also directed to remain vigilant and not to take unnecessary adjournment. Thus 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 04th day of April, 2025.