ITAT Panaji Judgments — May 2025

The Tribunal set aside the order of the CIT(A) and remitted the disputed issue back to the Assessing Officer. It directed the AO to provide the assessee with adequate opportunity to submit further evidences and information to substantiate the expenditure claimed against royalty income, and to re-adjudicate the matter afresh on merits.

The assessee filed a letter dated 11-04-2025 for the withdrawal of the appeal. The Ld. DR had no objections to the withdrawal. Consequently, the Tribunal treated the appeal as withdrawn and dismissed it.

The Tribunal ruled that for AY 2018-19, the CPC did not possess the enabling power under section 143(1)(a)(v) to disallow Section 80P deduction for belated filing. The relevant amendment to Section 143(1)(a)(v) by the Finance Act, 2021, came into effect from April 1, 2021, and was therefore not applicable for the assessment year in question. Thus, the CPC's action was beyond its jurisdiction.

The Tribunal noted the CIT(A) dismissed the appeal ex-parte due to the assessee's non-appearance. Considering the principles of natural justice and the assessee's grounds of appeal, the Tribunal decided to provide another opportunity to substantiate the case. Therefore, the Tribunal set aside the CIT(A)'s order and remitted the disputed issue back to the CIT(A) for fresh adjudication.

The ITAT condoned the 146-day delay in filing the appeal before it, recognizing sufficient cause. It then set aside the CIT(A)'s order and remitted the case back to the CIT(A) with a direction to first decide the admission of the assessee's appeal after duly considering the explanation for delay, and if admitted, to adjudicate the appeal on merits as per law.