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Facts
The assessee filed its return for AY 2020-21, where a deduction of Rs. 1,39,27,716/- under Section 80IE was disallowed during processing under Section 143(1). The assessee appealed to the CIT(A), who dismissed the appeal as infructuous, noting that an assessment order under Section 143(3) disallowing the same deduction had been passed, and citing a live link between the Section 143(1) addition and Section 143(3) order.
Held
The Tribunal found that dismissing the appeal would lead to a failure of justice. Consequently, the Tribunal set aside the CIT(A)'s order and remanded the case back to the Assessing Officer for fresh assessment and reconsideration, allowing the assessee an opportunity to be heard. The appeal was allowed for statistical purposes.
Key Issues
Justification of CIT(A) dismissing appeal as infructuous; Whether to remand the case for fresh assessment and reconsideration of Section 80IE deduction.
Sections Cited
Section 250, Section 143(1), Section 80IE, Section 143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, : GAUHATI BENCH: GUWAHATI
Before: SHRI MANOMOHAN DAS, HON’BLE & SHRI RAKESH MISHRA, HON’BLE
ORDER
PER MANOMOHAN DAS, JM
The assessee filed the captioned appeal against the order of the learned Commissioner of Income Tax (Appeals), Addl / JCIT (A) Indore (hereinafter referred to as the (“CIT(A)” dated 21.11.2024 passed under Section 250 of the Income Tax Act, 1961 (hereinafter Page 1 of 3 Imperial Extrusions -Vs- The ITO, Ward-1 (1), Guwahati AY: 2020-21 referred to as the ‘Act’) which is pertains to the Assessment Year [AY] 2020-21.
The brief facts of the case are that, the assessee filed its return of income for the AY 2020-21 on 15.01.2021. The same was processed u/s 143(1) on 23.09.2022 wherein deduction u/s 80IE of Rs. 1,39,27,716/- was disallowed. Thereafter, the assessee preferred an appeal before the ld. CIT(A). The ld. CIT(A) observed that, the case of the assessee was taken for scrutiny and deduction u/s 80IE of the Act was disallowed in the assessment order u/s 143(3) of the Act was passed vide dated 23.09.2022. Thereafter, a hearing notice was issued to the assessee asking to explain as to why the appeal proceedings should not be treated as infructuous in view of the assessment order passed u/s 143(3) of the Act. The assessee requested the ld. CIT(A) to treat the column no. 2(a) of Form No. 35 as 143(3) and dispose of the appeal. However, the ld. CIT(A) dismissed the appeal of the assessee citing the reason that, the ld. AO has made addition u/s 143 (1) in the order u/s 143(3) there is live link in that orders and dismissed the appeal of the assessee by treating as infructuous.
Being aggrieved, the assessee filed the present appeal before the Tribunal.
Heard the representatives of both the parties and perused the material on record.