2020 (8) TMI 662 - AT - Income Tax

Tribunal remands issue for fresh review, allows additional evidence. Appeal allowed for statistical purposes.

Lokmangal Co-op. Bank Ltd. Versus ACIT, Circle – 2, Solapur

Lokmangal Co-op. Bank Ltd. Versus ACIT, Circle – 2, Solapur - TMI Issues involved:1. Justification of addition made by the AO u/s. 154 of the Act confirmed by CIT(A) for assessment year 2009-10.Analysis:1. The appeal by the assessee challenged the order of the CIT(A) confirming the addition made by the AO u/s. 154 of the Act. The AO identified a mistake related to the allowance of deduction u/s. 36(1)(viia) of the Act, leading to the issuance of a notice u/s. 154. The assessee responded, and the AO, based on the consent of the assessee's representative, disallowed an amount of Rs. 10,42,608. The CIT(A) upheld this decision. However, the assessee argued that the disallowance under u/s. 36(1)(viia) was a matter of litigation and not suitable for rectification u/s. 154. The contention was that the issue was debatable, not discussed in the original assessment order, and therefore, the rectification was invalid. The Tribunal noted that these arguments were not raised before the AO initially but agreed to remand the matter to the AO for fresh consideration, allowing the assessee to present evidence to support its claim.2. The Tribunal considered the submissions of both parties and decided to remand the issue to the AO for a fresh review. The assessee was granted the opportunity to provide any additional evidence in support of its claim. The decision to remand the issue was made in light of the facts and circumstances presented during the proceedings. Consequently, the appeal of the assessee was allowed for statistical purposes, with the order pronounced in open court on 14th August 2020.