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Facts
The assessee sought deduction under section 80P, claiming interest income. The Assessing Officer made an addition of Rs.69,32,094/-, stating that the assessee did not cooperate by providing documents. The assessee contended that in previous and subsequent years, the 80P deduction was allowed without scrutiny.
Held
The Tribunal noted that the assessment order was cryptic and the assessee had not cooperated. Therefore, the issues were restored to the file of the Assessing Officer for re-adjudication, with a direction for the assessee to cooperate.
Key Issues
Whether the assessee is entitled to deduction u/s 80P and if the addition made by the AO is justified.
Sections Cited
80P
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Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK
Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR
आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order dated 9.12.23014 passed by ld CIT(A), NFAC in Appeal No.CIT(A), Cuttack/10187/2018-19 for the assessment year 2016-17. 2. Shri S.K.Agarwal, ld AR appeared for the assessee and Shri Vijaya Singh, ld Sr DR appeared for the revenue. 3. It was submitted by ld AR that in the course of assessment, the assessee was asked to clarify the deduction under Chapter -VI with documentary evidence. It was the submission that the assessee is entitled to deduction u/s. 80P. The Assessing Officer made an addition of Rs.69,32,094/-. It was the submission that interest income received by the assessee was Rs.69,32,094/-. The Assessing officer has also not mentioned how he has arrived at Rs.69,32,094/-. It was the submission that the accounts are audited and the assessee’s claim for deduction u/s. 80P was available before the AO. In the earlier years and subsequent years, the assessee has claimed deduction u/s. 80P and no scrutiny assessment was done. The claim of the assessee has been accepted without any disturbance. It was the submission that the assessee may be held to be liable for deduction u/s. 80P and addition made by the AO and confirmed by the ld CIT(A) be deleted.
In reply, ld Sr DR submitted that the issue may be restored to the file of the Assessing Officer for re-examination.
We have considered the rival submissions. A perusal of the assessment order clearly shows that it is a cryptic assessment order. It is also noticed that the assessee has not cooperated in the assessment proceedings insofar as there is no submission of documents and books of account. This being so, the issues are restored to the file of the AO for re-adjudication and the assessee shall cooperate in the set aside proceedings before the AO with documentary evidences, as required.