2022 (5) TMI 1065 - AT - Income Tax

Appeal dismissed for lack of evidence on deduction claim under Section 80P of Income Tax Act

M/s. Junagadh Dist. Co-op. Purchase & Sales Union Ltd. Versus ITO Ward-1 (2), Junagadh

The Tribunal dismissed the appeal, upholding the disallowance of Rs. 8,97,854 under Section 80P of the Income Tax Act. The assessee, a cooperative ... Deduction u/s 80P - None appearance by assessee - HELD THAT:- When the appeal is listed for hearing on 22.02.2022 the Ld. Authorized Representative Mr. D. R. Adhia informed in writing that some important details could not be obtained due to Covid-19 and allied matters prevailing in various staffs of the assessee, therefore, sought for short adjournment to produce the details. Taking note of the written request, the appeal was adjourned to 06.04.2022. None appeared on behalf of the assessee the case was adjourned to 17.05.2022, in both the days none appeared on behalf of the assessee. It is an admitted fact that the assessee could not produce details or evidences in claiming the deduction under Section 80P right from 2011. AO has made the addition since the assessee failed to furnish any explanation or objection against the disallowance. Similar was the case with the CIT (Appeals), when he passed the appellate order in 2013. Even in 2022, though opportunity was given to the assessee to produce the details, the assessee is not present for the last two hearing. In the absence of any evidence before us, we are not in a position to delete the additions as claimed in the grounds of appeal raised by the assessee. Hence, the above grounds are rejected and the appeal filed by the assessee is hereby dismissed. Issues:1. Disallowance of deduction under Section 80P of the Income Tax Act, 1961.Analysis:The appeal was filed by the assessee against the order of the Commissioner of Income Tax (Appeals)-IV relating to the Assessment Year 2009-10. The assessee, a cooperative society, had declared Nil income for the year. The Assessing Officer (AO) restricted the claim under Section 80P to Rs. 21,16,010, whereas the assessee had claimed Rs. 29,83,703. The AO issued a show cause notice regarding the taxable income from retail trade not covered under Section 80P provisions. The assessee did not respond, leading to a disallowance of Rs. 8,97,854 by the AO.The Commissioner of Income Tax (Appeals) confirmed the disallowance due to lack of substantiating evidence from the assessee. The Authorized Representative failed to provide a breakdown of sales between members and non-members in the retail business. The Tribunal noted that the appeal had been listed for hearing multiple times, with the assessee failing to appear or provide necessary details. The Authorized Representative cited Covid-19 related issues for the delay in producing required information, but the Tribunal found no evidence presented to support the deduction claim under Section 80P.Despite multiple adjournments and opportunities given to the assessee, no evidence was produced to support the deduction claim under Section 80P. The Tribunal concluded that without any substantiating details, the additions made by the AO and confirmed by the Commissioner of Income Tax (Appeals) could not be deleted. Therefore, the appeal filed by the assessee was dismissed, and the disallowance of Rs. 8,97,854 under Section 80P was upheld.In conclusion, the Tribunal dismissed the appeal, emphasizing the assessee's failure to provide necessary details and evidence to support the deduction claim under Section 80P. The Tribunal upheld the disallowance made by the AO and confirmed by the Commissioner of Income Tax (Appeals) due to the lack of credible information presented throughout the proceedings.