NEYYOOR P A C C S LTD, KANYAKUMARI V. ITO,WARD 3, NAGERCOIL

ITA 377/CHNY/2022

AI Insights

The case involves Neyyoor P A C C S Ltd, the appellant, who filed an appeal against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, concerning the assessment year 2018-19. The appellant had filed a return of income claiming a deduction under section 80P of the Income Tax Act, 1961, which was disallowed by the ADIT CPC, Bengaluru, during the processing of the return. The CIT(A) upheld this disallowance as the return was not filed within the due date specified under section 139(1) of the Act. The appellant contested this decision, arguing that the CPC, Bengaluru, processed the return hastily without waiting for the outcome of a condonation petition filed with the CBDT to excuse the delay in filing the return.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135120 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: C
• Next Hearing Date: 07-06-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 19-05-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Condonation of delay; Set aside
• Section: 119(2)(b); 143(1); 80P; 139(1)

Judgement Text

आयकर अपीलीय अिधकरण, ‘सी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI ŵी वी. दुगाŊ राव, Ɋाियक सद˟ एवं ŵी मनोज कु मार अŤवाल, लेखा सद˟ के समƗ । Before Shri V. Durga Rao, Judicial Member & Shri Manoj Kumar Aggarwal, Accountant Member आयकर अपील सं./I.T.A. No.377/Chny/2022 िनधाŊरण वषŊ/Assessment Year: 2018-19 Neyyoor P A C C S Ltd No. 398, 398, Neyyoor West, Neyyoor Post, Kanyakumari District, Tamil Nadu 629 803. [PAN:AAEAN0731E] Vs. The Income Tax Officer, Ward 3, Nagercoil. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri T. Vasudevan, Advocate ŮȑथŎ की ओर से/Respondent by : Shri P. Sajit Kumar, JCIT सुनवाई की तारीख/ Date of hearing : 08.06.2023 घोषणा की तारीख /Date of Pronouncement : 14.06.2023 आदेश /O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi both dated 21.03.2022 relevant to the assessment year 2018-19. 2. Brief facts of the case are that the assessee has filed the return of income for the assessment year 2018-19 on 22.01.2019 admitting Nil income after claiming deduction under section 80P of the Income Tax Act, I.T.A. No. 377/Chny/22 2 1961 [“Act” in short] of ₹.22,36,570/-. The ADIT CPC, Bengaluru, while processing the return of income disallowed the claim of the assessee under section 80P of the Act and passed intimation under section 143(1) of the Act dated 31.05.2019. 3. The assessee carried the matter in appeal before the ld. CIT(A). Since the assessee has not filed the return of income within the due date of filing as specified under section 139(1) of the Act and accordingly, the ld. CIT(A) confirmed the assessment and dismissed the ground raised by the assessee. 4. On being aggrieved, the assessee is in appeal before the Tribunal. By filing copy of the application under section 119(2) of the Act, the ld. Counsel for the assessee has submitted that the assessee has filed a condonation petition before the CBDT under section 119(2) of the Act to condone the delay in filing the return of income. It was further submission that despite having time to process the return of income under section 143(1) of the Act, the CPC, Bengaluru hurriedly processed the same by denying the claim of deduction under section 80P of the Act. 5. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. In this case, I.T.A. No. 377/Chny/22 3 since the return of income for both the assessment years were not filed within the due date of filing as specified under section 139(1) of the Act, the DCIT-CPC, Bengaluru disallowed the claim of deduction under section 80P of the Act and the ld. CIT(A) confirmed the disallowance made under section 80P of the Act by the Assessing Officer. 6. Before the Tribunal, the ld. Counsel for the assessee has argued that despite having time to process the return of income under section 143(1) of the Act, the DCIT-CPC, Bengaluru hurriedly processed the return of income under section 143(1) of the Act without waiting for the outcome of the condonation petition filed before the CBDT. In view of the fact that the assessee has filed an application for condonation of delay before the CBDT under section 119(2)(b) of the Act, it is opined that once the delay condonation is pending before the CBDT, the Department ought to have waited for the decision of the CBDT, for the reason that, if the CBDT condone the delay, the claim of the assessee has to be considered in accordance with law. Therefore, we set aside the order passed by the ld. CIT(A) and remit the matter back to the file of the ld. CIT(A) to wait for the decision on the condonation petition filed by the assessee before the CBDT and thereafter pass order in accordance with law. 7. In the result, both the appeals filed by the assessee are allowed for I.T.A. No. 377/Chny/22 4 statistical purposes. Order pronounced on 14 th June, 2023 at Chennai. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER Chennai, Dated, 14.06.2023 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3.आयकर आयुƅ/CIT, 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF.