Case Number: ITA 1870/DEL/2022
Appellant: The Bharat Co-op Thrift & Credit Society Ltd., Delhi
Respondent: ITO, Ward-35(1), Delhi
Assessment Year: 2018-19
Result: Allowed for statistical purposes
Case Filed on: 2022-08-18
Order Type: Final Tribunal Order
Date of Order: 2023-02-16
Pronounced on: 2023-02-16
The Bharat Co-op Thrift & Credit Society Ltd. filed its return of income electronically for the assessment year 2018-19 on 24th December 2018, declaring a total income of Rs. 83,170. The assessment was completed under Section 143(3) of the Income-tax Act, 1961, resulting in a total income of Rs. 29,49,260 after disallowing a claim of Rs. 28,66,098 under Section 80P(2)(d). The appellant contested this disallowance before the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, but the disallowance was upheld. Aggrieved, the appellant filed an appeal before the Income Tax Appellate Tribunal (ITAT), Delhi.
The appeal was heard by the Delhi Bench “SMC” of the ITAT, with Shri Kul Bharat as the Judicial Member. The appellant was represented by Shri K. Sampath and Shri V. Rajakumar, Advocates, while the respondent was represented by Ms. Maimun Alam, Senior Departmental Representative (DR).
The key issue under dispute was the disallowance of the deduction under Section 80P(2)(d) amounting to Rs. 7,46,204. The appellant argued that the disallowance was excessive and not justified based on the facts and circumstances of the case.
The appellant submitted that the additional evidence, specifically a corrigendum dated 26th July 2022 issued by The Delhi State Cooperative Bank Ltd., was crucial to the case. This evidence, which corrected an earlier certificate for interest for the financial year 2017-18, was not available during the initial proceedings. The appellant requested the tribunal to admit this additional evidence under rule 29 of the ITAT Rules, 1963.
The respondent opposed the admission of the additional evidence, arguing that it was not necessary for resolving the issue at hand. However, the respondent did not provide substantial grounds to refute the appellant’s claim about the relevance and necessity of the additional evidence.
After considering the arguments, the tribunal noted that the additional evidence brought forth by the appellant was indeed critical to resolving the dispute. The tribunal decided to admit the corrigendum dated 26th July 2022 and restore the matter to the file of the Assessing Officer for verification. The Assessing Officer was instructed to examine the authenticity of the corrigendum and decide the issue afresh, providing reasonable opportunity for the appellant to be heard.
The tribunal acknowledged that the disallowance under Section 80P(2)(d) required a thorough examination of the corrected certificate for interest. The tribunal set aside the order of the CIT(A) and directed the Assessing Officer to reassess the claim based on the new evidence.
The appeal was allowed for statistical purposes, with the tribunal directing the Assessing Officer to re-evaluate the claim of Rs. 28,66,098 under Section 80P(2)(d) in light of the additional evidence provided. The tribunal emphasized the need for a fair and thorough examination of the corrigendum to ensure justice was served.
The final order, pronounced on 16th February 2023, stated:
“In the result, the appeal is allowed for statistical purposes. The Assessing Officer is directed to verify the corrigendum dated 26th July 2022 and decide the issue afresh in accordance with law, after affording reasonable opportunity of being heard to the assessee.”
Order pronounced in open court on 16th February 2023.
Signed by: KUL BHARAT, JUDICIAL MEMBER
Dated: 16th February 2023
Draft dictated: 13th February 2023
Draft placed before author: 13th February 2023
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