PALAKKAD DIST. CO-OPERATIVE PRINTING PRESS LTD. S,PALAKKAD vs. INCOME TAX OFFICER, PALAKKAD

The Revenue vehemently argues that both the lower authorities have rightly invoked the CBDT circular No. 7/22 of 1995 dated 19.09.1995 for Palakkad District Co-operative Printing Press Ltd. the purpose of refusing the assessee’s s. 80P(2)(a)(ii) deduction claimed of Rs. 26,70,741/- on the ground that it is not a cottage industry.

We note in this factual backdrop of the Assessing Officer’s assessment dated 07.09.2022; and more particularly in paras 7 to 9 therein, has taken note of the assessee’s non-cooperation in satisfying all the necessary conditions of itself being a cottage industry. Learned CIT(A)’s details discussion in paras 5 & 6 has also quoted the foregoing CBDT circular on the one hand which fails to give a clear cut finding regarding non-fulfillment of the necessary conditions at the assessee’s behest. That being the case, we consider it appropriate to restore the instant issue to the CITA/NFAC to be examined afresh in clear cut terms as to which clause of the above circular is not satisfied by the assessee for the purpose of claiming the impugned section 80P deduction. Our remand directions are subject to the rider that it shall be the assessee’s risk and responsibility only to plead and prove all the related facts within three effective opportunities of hearing. Ordered accordingly.

This assessee’s appeal is allowed for statistical purposes in above terms. Order pronounced in the open court on this 25th Day of September, 2024.