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Facts
The assessee, a Co-operative Credit Society, filed a return of income for AY 2020-21 claiming a deduction u/s 80P. The CPC passed an intimation u/s 143(1) raising a demand by partly denying this deduction. The assessee filed an appeal before the first appellate authority with a significant delay of 504 days, which was dismissed in limine.
Held
The assessee's AR admitted a mistake in filing the appeal before the first appellate authority against the intimation instead of the rectification order passed u/s 154. The AR requested the appeal be dismissed as withdrawn with liberty to file a fresh appeal.
Key Issues
Whether the appeal is maintainable due to procedural error in filing before the appellate authority, and whether the deduction u/s 80P was correctly denied.
Sections Cited
250, 143(1), 80P, 154
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Income Tax Appellate Tribunal, “SMC” “B’’ BENCH: BANGALORE
Before: SHRI GEORGE GEORGE K.
PER GEORGE GEORGE K., VICE PRESIDENT:
This appeal at the instance of assessee is directed against Addl./JCIT(A)-1, Pune dated 15.2.2024 for the assessment year 2020-21 passed u/s 250 of the Income Tax Act, 1961 (in short “The Act”).
Brief facts of the case are that assessee is a Co-operative Credit Society. For the assessment year 2020-21, return of income was filed on 18.12.2020 declaring an income of Rs.3,24,720/- after claiming deduction u/s 80P of the Act. The intimation u/s 143(1) of the Act was passed by the CPC on 25.11.2021 raising a demand of Rs.3,27,780/-. The CPC had partly denied the claim of deduction u/s 80P of the Act.
Page 2 of 3 3. Aggrieved, by the said intimation, passed u/s 143(1) of the Act, assessee filed an appeal before the first appellate authority. There was a delay of 504 days in filing the appeal before the first appellate authority. The assessee’s appeal was dismissed by the first appellate authority in limine without condoning the aforesaid delay.
Aggrieved by the impugned order of the ld. CIT(A), assessee has filed the present appeal before the Tribunal. The ld. A.R. submitted that assessee had made a mistake in filing the appeal before the first appellate authorities as against the intimation passed u/s 143(1) of the Act. It was submitted by the ld. A.R. that assessee had preferred rectification u/s 154 of the Act against the intimation passed u/s 143(1) of the Act and the last rectification order is dated 3.3.2023. It was submitted that the assessee ought to have filed an appeal as against the order passed u/s 154 of the Act dated 3.3.2023 and requested that this appeal may be dismissed as withdrawn with liberty to file a fresh appeal before the ld. CIT(A) as against the rectification order passed u/s 154 of the Act. On merits, the ld. A.R. submitted that the assessee had received the interest income from the Co-operative society and even if the claim of deduction has been made in the return of income made u/s 80P(2(a)(i) of the Act, the revenue was duty bound to allow the deduction u/s 80P(2)(d) of the Act.
The ld. Standing counsel supported the order of the ld. CIT(A).
I heard the rival submissions and perused the materials available on record. The ld. A.R. had submitted that assessee had made a mistake in filing the appeal before the first appellate authority as against the intimation issued u/s 143(1) of the Act instead of the rectification order dated 3.3.2023. Accordingly, as per the prayer of the ld. A.R., this appeal is dismissed as withdrawn with the liberty to Page 3 of 3 the assessee to file fresh appeal before the first appellate authority as against the order passed u/s 154 of the Act. It is ordered accordingly.
In the result, appeal filed by the assessee is dismissed.
Order pronounced in the open court on 14th Aug, 2024