Appellate Tribunal grants deduction under Section 80P, emphasizes plenary powers for legal claims

The Appellate Tribunal ITAT Bangalore allowed the appeal of the assessee-cooperative society concerning the deduction under section 80P of the Income-tax Act, 1961. The Tribunal emphasized the plenary powers of the Appellate Authority to entertain legal claims even if not raised before the Income-tax Officer. The issue was remitted back to the CIT(A) for fresh adjudication based on the principles discussed, treating the appeal as allowed for statistical purposes.

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Issues:
Allowability of deduction u/s 80P of the Income-tax Act, 1961.

Analysis:

Issue: Allowability of deduction u/s 80P

The appeal was filed by the assessee-co-operative society challenging the order of the Commissioner of Income-tax (Appeals) concerning the allowability of deduction u/s 80P of the Income-tax Act, 1961. The Commissioner had denied the claim as the assessee did not make the claim in the original or revised return of income. However, the Tribunal referred to various High Court judgments emphasizing that there is no restriction on the power of the CIT(A) to entertain a legal claim to which the assessee is entitled. Citing the case of CIT vs. Mitesh Impex, the Tribunal highlighted that the Appellate Assistant Commissioner has plenary powers in disposing of appeals and can modify the assessment order on additional grounds even if not raised before the Income-tax Officer. The Tribunal also noted that the power of the Appellate Authority is co-terminus with that of the Income-tax Officer, allowing for the consideration of additional claims. Therefore, the Tribunal remitted the issue back to the CIT(A) for fresh adjudication on the claim of the assessee-co-operative society.

In conclusion, the appeal filed by the assessee was treated as allowed for statistical purposes, and the issue was remitted back to the CIT(A) for further consideration in light of the legal principles discussed.

Order pronounced on 10th October 2018 by the Appellate Tribunal ITAT Bangalore, comprising SHRI N.V.VASUDEVAN, JUDICIAL MEMBER, and SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER.

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