SHIVCHHTRAPATI CO OP CREDIT SOCIETY LTD,MUMBAI vs. INCOME TAX OFFICER, MUMBAI

In the instant case, the Assessing Officer (AO) made the disallowance of Rs.8,63,256/- on account of deduction claimed under section 80P of the Act. On appeal, the Ld. Commissioner though afforded various opportunities to the assessee, however, the assessee made no compliance and therefore the Ld. Commissioner in the absence of relevant reply/documents was constrained to decide the appeal of the assessee for non- prosecution and consequently dismissed the same in the absence of any evidence to rebut the assessment order. Though the conduct of the assessee do not seem to be reasonable and condonable, however, considering the peculiar facts that the Ld. Commissioner in the absence of relevant reply/documents failed to decide the appeal in its right perspective and proper manner and therefore for just decision of the case and for the ends of substantial justice, we are inclined to set aside the impugned order and consequently remanding the instant case to the file of the Ld. Commissioner for decision afresh on merits, suffice to say by affording reasonable opportunity to the assessee to substantiate its claim.

We also direct the assessee to cooperate with the appellate proceedings and to file the relevant submissions/documents which would be essential and required by the Ld. Commissioner for proper adjudication of the case. We clarify, in case of further default the assessee shall not be entitled for any leniency. Hence, the case is remanded accordingly.