Tribunal partly allows assessee's appeal, remits matter back for reassessment.

The appeal by the assessee was partly allowed by the Tribunal. The Tribunal set aside the decisions of the lower authorities regarding the addition of the differential amount in receipts and the eligibility for deduction under Section 80P(2) of the Income Tax Act, 1961. The matter was remitted back to the Assessing Officer for further computation based on the corrected Form 26AS and balance of commission receivables.

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Issues Involved:
1. Ex parte decision by CIT(A) refusing adjournment sought by assessee.
2. Addition of differential amount in receipts as per Form 26AS and return of income.
3. Eligibility for deduction under Section 80P(2) of the Income Tax Act, 1961.

Issue 1: Ex parte decision by CIT(A)
The assessee appealed against the CIT(A)'s decision to decide the appeal ex parte by refusing the adjournment sought by the assessee's authorized representative (A/R). The A/R had requested time to reconcile differences in receipts, but the adjournment was denied.

Issue 2: Addition of differential amount in receipts
The Assessing Officer noted a difference in receipts shown in the books of account and Form 26AS. The assessee explained that the amount in Form 26AS was already accounted for in the previous year's income. The CIT(A) confirmed the addition of the differential amount. However, the Tribunal found that an amended Form 26AS corrected the error, reducing the differential amount. The Tribunal directed the Assessing Officer to consider the amended Form 26AS and balance of commission receivables to compute any difference to be added to the income.

Issue 3: Eligibility for deduction under Section 80P(2)
The Tribunal referred to a previous case involving deduction under Section 80P(2) for a cooperative society. It was held that income attributable to certain activities of a cooperative society could be exempt from tax. Applying this precedent, the Tribunal determined that even if an addition was made, it would be eligible for deduction under Section 80P of the Act. The matter was remitted back to the Assessing Officer for computing any differences after reconciliation of balances.

In conclusion, the appeal by the assessee was partly allowed, with the Tribunal setting aside the decisions of the authorities below and remitting the matter back to the Assessing Officer for further computation based on the corrected Form 26AS and balance of commission receivables.

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