M/S VRAHTTAKAR SAHKARI SAMITI MY.,GAUHARGANJ vs. THE NFAC, DELHI

Feeling aggrieved by appeal-order dated 10.03.2023 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”], which in turn arises out of assessment-order dated 21.04.2021 passed by learned National e-Assessment Centre, Delhi [“AO”] u/s 143(3) read with section 144B of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2018-19, the assessee has filed this appeal.

Ld. AR carried us to assessment-order and submitted that while framing assessment, the AO has disallowed deduction of interest expenditure of Rs. 33,21,866/- claimed by assessee to have been paid to District Co-operative Bank, for the reasoning that the assessee did not file details and evidences. Ld. AR submitted that the assessee has filed complete details with supporting evidences at Page No. 41-91 of Paper-Book. Then, Ld. AR also submitted that the assessee is entitled to deduction u/s 80P and even otherwise the AO is not justified in simply making disallowance of interest and computing the total income of assessee without correspondingly increasing the amount of deduction u/s 80P.

Then, Ld. AR drew us to the order of CIT(A) and submitted that the CIT(A) has dismissed first-appeal for non-prosecution, though due to non- appearance by assessee but without following the mandate of section 250(6) of the Income-tax Act, 1961 which provides “The order of the Commissioner (Appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision.”.

After discussions, a consensus was reached to send this case to the file of AO so that the issues of assessee cannot be aptly resolved. Therefore, Vrahttakar Sahkari Samiti Mydt., Raisen vs. NFAC Delhi I.T.A.No. 178/Ind/2023 - AY 2018-19 we deem it fit to remand this matter back to the file of AO for a fresh adjudication after proper verification and examination of the documents submitted by assessee in support of payment of interest in question. The AO shall give needful opportunities of hearing to assessee and the assessee is also directed to ensure participation in the hearings fixed by AO and do not seek unnecessary adjournments.

Resultantly, this appeal is allowed for statistical purpose.