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Facts
The assessee's appeal arises from an ex-parte order passed by the Ld.CIT(A). The assessee claims that notices were not effectively served, particularly the last one during the COVID period. The issue pertains to the disallowance of a deduction claimed under Section 80P(2)(a)(i) of the Act.
Held
The Tribunal noted that only one notice of hearing was issued post-COVID. Considering recent Supreme Court decisions, the Tribunal decided to remit the issue to the AO for necessary verification and to consider the claim in accordance with the law, ensuring the assessee is granted a proper opportunity of being heard.
Key Issues
Whether the disallowance of deduction under Section 80P(2)(a)(i) was justified, considering the assessee did not receive proper notice for hearing?
Sections Cited
80P(2)(a)(i)
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Income Tax Appellate Tribunal, SMC-‘B’ BENCH : BANGALORE
Before: SHRI CHANDRA POOJARI & SMT. BEENA PILLAI
ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal arises out of order dated 29.02.2024 passed by the Ld.CIT(A)-1, Ludhiana.
At the outset, the it is submitted by the Ld.AR that the order passed by the Ld.CIT(A) is ex-parte order. It is submitted that two notices that were issued on 15.01.2021 and 16.08.2021 during covid period. The Ld.AR submitted that, thereafter the third notice was issued on 02.02.2024 which was served on an email id which the assessee could not access at the relevant period of time. The Ld.AR thus prayed for the matter to be remanded to the authorities below for considering the issues on merits.
2.1 On the contrary, the Ld.DR though objected to the submissions of the Ld.AR, could not controvert the submissions made by him. We have perused the submissions advanced by both sides in the light of records placed before us.
It is noted that post the covid period assessee was issued only one notice of hearing from the office of the Ld.CIT(A). The issue involved in the present facts on merits is regarding disallowance of deduction claimed u/s. 80P(2)(a)(i) of the act. The assessing officer dismissed the claim of the assessee placing reliance on the decision of Hon’ble Supreme Court in case of Citizen Co-operative Society Ltd. vs. ACIT reported in (2017) 84 taxmann.com 114.
3.1 In our considered opinion, subsequent decision by Hon’ble Supreme Court in case of Mavilayi Service Co- operative Bank Ltd. v. CIT reported in 431 ITR 1 and Kerala State Co-operative Agricultural and Rural Development Bank Ltd. vs. AO reported
Page 3 of (2023) 154 taxmann.com 305 is to be considered based on the evidences filed by the assessee. We accordingly, remit this issue to the Ld.AO for carrying out necessary verification and to consider the claim of assessee in accordance with law and having regard to the decisions of Hon’ble Supreme Court (supra) as well as decisions by this Tribunal on identical issues. Needless to say that proper opportunity of being heard must be granted to assessee in accordance with law. Accordingly, the grounds raised by the assessee stands partly allowed for statistical purposes. In the result, the appeal filed by the assessee stands partly allowed. Order pronounced in the open court on 01st August, 2024.