Tax Tribunal allows deduction for poultry farming cooperative society, directs reassessment. Remands separate appeal for alternate deduction claim.

The ITAT set aside the CIT(A)'s decision disallowing deduction under section 80P(2)(a)(vi) for a cooperative society engaged in poultry farming, directing the A.O. to reevaluate the claim considering all submissions. The ITAT also remanded a separate appeal back to the A.O. for failure to consider an alternate deduction claim under section 80P(2)(a)(iii) for the same assessee. Both appeals were allowed for statistical purposes due to authorities' inadequate consideration of the assessee's submissions.

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Issues:
1. Disallowance of deduction u/s 80P(2)(a)(vi) by CIT(A)
2. Failure to consider alternate claim of deduction u/s 80P(2)(a)(iii)

Analysis:

Issue 1: Disallowance of deduction u/s 80P(2)(a)(vi) by CIT(A)
The assessee, a cooperative society engaged in poultry farming, claimed a deduction of Rs. 11,68,222 under section 80P(2)(a)(vi) of the Income Tax Act, 1961. However, the Assessing Officer (A.O.) disallowed this claim during scrutiny proceedings. The CIT(A) upheld the A.O.'s decision. The assessee contended that it should be eligible for deduction under the said section or under an alternate clause if not eligible under one clause. The ITAT found that the authorities had not considered the submissions of the assessee properly. Consequently, the ITAT set aside the CIT(A)'s order and remanded the issue back to the A.O. for reevaluation considering all the submissions and verifying the claim. The grounds raised by the assessee were allowed for statistical purposes.

Issue 2: Failure to consider alternate claim of deduction u/s 80P(2)(a)(iii)
In a separate appeal for the assessment year 2014-15, the assessee raised similar grounds regarding the disallowance of Rs. 15,63,594 under section 80P(2)(a)(vi) and the failure to consider an alternate claim under section 80P(2)(a)(iii). The ITAT, after hearing both parties and reviewing the records, noted that the facts were identical to the previous assessment year. Following the same reasoning as in the earlier case, the ITAT remanded the issue back to the A.O. for fresh consideration. The appeals filed by the assessee were allowed for statistical purposes in this instance as well.

In conclusion, the ITAT, in both appeals, found that the authorities had not properly considered the submissions of the assessee regarding the eligibility for deduction under relevant sections of the Income Tax Act. The ITAT, therefore, set aside the CIT(A)'s orders and directed the A.O. to reevaluate the claims in light of all submissions provided by the assessee. The appeals were allowed for statistical purposes, and the decisions were pronounced in open court on 27th September 2019.

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