SS-10 PUPM THRIFT SOCIETY, SALEM V. ADIT-CPC, BENGALURU

ITA 47/CHNY/2023

AI Insights

The case involves SS 10 PUPM Thrift Society, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was related to the assessment year 2019-20, where the assessee had not filed the return of income within the due date. Consequently, the Assessing Officer disallowed a claim of deduction under chapter VI-A. The CIT(A) dismissed the appeal, stating that the issue required an administrative solution, not appellate proceedings. The assessee then appealed to the Tribunal, arguing that the return was processed hurriedly without waiting for the outcome of a condonation petition filed before the CBDT.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135421 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: C
• Next Hearing Date: 06-03-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 12-01-2023
• 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

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 जी. मंजुनाथा, लेखा सद˟ के समƗ Before Shri V. Durga Rao, Judicial Member & Shri G. Manjunatha, Accountant Member आयकर अपील सं./I.T.A. No.47/Chny/2023 िनधाŊरण वषŊ/Assessment Year: 2019-20 SS 10 PUPM Thrift Society, Harur Main Road, Ayothiyapattinam Post, Valappady Taluk, Salem 636 103. [PAN: AAVAS3179A] Vs. The Assistant Director of Income Tax - CPC, Bengaluru. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri S. Sridhar, Advocate [Erode] ŮȑथŎ की ओर से/Respondent by : Shri P. Sajit Kumar, JCIT सुनवाई की तारीख/ Date of hearing : 07.03.2023 घोषणा की तारीख /Date of Pronouncement : 29.03.2023 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, dated 19.12.2022 relevant to the assessment year 2019-20. 2. Brief facts of the case are that the assessee has not filed the return of income for the assessment year 2019-20 within the due date. Therefore, in the intimation order under section 143(1) of the Income Tax I.T.A. No.47/Chny/23 2 Act, 1961 [“Act” in short] dated 13.01.2021, the Assessing Officer, CPC disallowed the claim of deduction of ₹.28,09,241/- under chapter VI-A. 3. On appeal before the ld. CIT(A), the main contention of the assessee was that the Assessing Officer, CPC has 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 for the belated filing of return of income. After considering the submissions of the assessee, the ld. CIT(A) has observed that the grievance of the assessee requires an administrative solution and cannot be resolved by appellate proceedings as far as delay in filing of return of income and consequent loss of chapter VI-A deductions are concerned and dismissed the appeal of the assessee. 4. On being aggrieved, the assessee is in appeal before the Tribunal. By reiterating the submissions as made before the ld. CIT(A), the only argument of the ld. Counsel was that despite having time to process the return of income under section 143(1) of the Act, the CPC, Bengaluru hurriedly processed the same on 13.01.2021 and denied the claim of deduction under section 80P of the Act under Chapter VI-A without waiting for the outcome of the condonation petition filed before the CBDT. I.T.A. No.47/Chny/23 3 5. On the other hand, the ld. DR strongly supported the orders of authorities below. 6. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. Admittedly, the assessee filed its return of income on 01.10.2020, whereas, the assessee should have filed its return of income on or before 30.09.2019. The case of the assessee is that despite having time to process the return of income under section 143(1) of the Act, the Assessing Officer, CPC, Bengaluru hurriedly processed the same on 13.01.2021 and denied the claim of deduction under section 80P of the Act under chapter VI-A without waiting for the outcome of the condonation petition filed before the CBDT. By filing copy of the petition for condonation of delay filed before the CBDT under section 119(2)(b) of the Act, the ld. Counsel for the assessee prayed for suitable directions. 6.1 We have gone through the copy of the petition for condonation of delay filed before the CBDT under section 119(2)(b) of the Act. In view of the petition for condonation of delay filed before the CBDT under section 119(2)(b) of the Act, we set aside the order of the ld. CIT(A) and remit the matter back to the file of the Assessing Officer to decide the issue afresh after considering the decision of the CBDT on the I.T.A. No.47/Chny/23 4 petition for condonation of delay filed by the assessee under section 119(2)(b) of the Act. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 29 th March, 2023 at Chennai. Sd/- Sd/- (G. MANJUNATHA) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER Chennai, Dated, 29.03.2023 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ (अपील)/CIT(A), 4. आयकर आयुƅ/CIT, 5. िवभागीय Ůितिनिध/DR & 6. गाडŊ फाईल/GF.