Appeal granted for denied tax claim due to lack of opportunity for substantiation.

The Tribunal allowed the appeal challenging the denial of the claim under section 80P(2) of the Income Tax Act for the Assessment Year 2018-19. The denial was deemed improper as the assessee was not given an opportunity to substantiate the claim as required by section 143(1)(a) of the Act. The Tribunal restored all issues, including the deduction claim, to the Assessing Officer for re-examination, emphasizing the importance of providing a fair opportunity for the assessee to support their claim and for a merit-based decision on the allowance of the deduction.

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Issues:
Appeal against order u/s 250 of the Income Tax Act - Denial of claim u/s 80P(2) - Eligibility of Poultry farming for deduction u/s 80P(2) - Opportunity for substantiating claim u/s 143(1)(a) - Restoration of issues to AO for examination - Merit-based allowance of claim u/s 80P(2).

Analysis:
The appeal filed by the assessee challenges the order passed u/s 250 of the Income Tax Act, contesting the denial of the claim made u/s 80P(2) for the Assessment Year 2018-19. The primary contention raised in the appeal revolves around the correctness of the denial without proper verification and examination of the records and provisions of law. The assessee, a Cooperative Society registered under the West Bengal Co-operative Societies Act, claimed deduction u/s 80P(2) for income from business or profession. However, the claim was denied during processing, citing improper filling of certain columns in the income tax return.

The Tribunal noted that the denial of the claim without providing an opportunity to the assessee to substantiate the claim goes against the provisions of Section 143(1)(a) of the Act. This section mandates that adjustments should not be made without informing the assessee and considering their response. The Tribunal found that the assessee was not given a chance to provide necessary documentary evidence to support the claim, and the CIT(A) did not adequately address the issue.

Considering the lack of opportunity provided to the assessee and the importance of substantiating a rightful claim, the Tribunal decided to restore all issues raised in the appeal, including the claim of deduction u/s 80P(2), to the Assessing Officer for re-examination. The AO was directed to verify the claim, consider any additional documents or details provided by the assessee, and allow the claim if found to be meritorious and in accordance with the law.

In conclusion, the Tribunal allowed the appeal of the assessee for statistical purposes, emphasizing the need for a fair opportunity for the assessee to substantiate their claim and for a merit-based decision on the allowance of the deduction u/s 80P(2) of the Income Tax Act.

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