Tribunal remits deduction denial under section 80P, directs reassessment.

The Tribunal set aside the CIT(A)'s decision to disallow deduction u/s.80P due to absence of renewal certificate, remitting the matter to the Assessing Officer for reevaluation. The Tribunal directed the AO to reassess the availability of deduction u/s.80P, allowing the appeal for statistical purposes. The case was pronounced in Open Court on 1st September 2022.

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Issues:
Appeal against non-granting of deduction u/s.80P of the Income-tax Act, 1961 for the assessment year 2015-16.

Analysis:
The appeal was filed by the assessee against the order of the CIT(A)-2, Nashik regarding the denial of deduction u/s.80P. The assessee had declared total income of Rs.76,510/- and claimed deduction u/s.80P. However, during the assessment proceedings, the assessee failed to provide documentary evidence to support the deduction claimed. Consequently, the Assessing Officer disallowed the deduction amounting to Rs.14,64,987/-. The assessee later submitted additional evidence before the CIT(A) in support of the deduction, but the CIT(A) noted that the renewal documents did not correspond to the relevant assessment year. Consequently, the CIT(A) upheld the disallowance of the deduction u/s.80P, leading the assessee to appeal to the Tribunal.

Upon reviewing the case, the Tribunal found that the denial of deduction by the CIT(A) was primarily due to the absence of the renewal certificate. The assessee contended that the certificate was indeed submitted before the CIT(A), but it was overlooked. The Tribunal, considering this discrepancy, decided to set aside the CIT(A)'s order and remit the matter back to the Assessing Officer for reevaluation. The Tribunal instructed the AO to reexamine the availability of deduction u/s.80P after providing a fair opportunity for the assessee to present their case.

Consequently, the Tribunal allowed the appeal for statistical purposes, indicating that the matter was being sent back to the AO for a fresh decision on the deduction u/s.80P. The order was pronounced in the Open Court on 1st September 2022.

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