2021 (12) TMI 1525 - SCH - Income Tax

Tax Exemption Under Section 80P Reopened: Cooperative Societies Get Fresh Chance to Present Evidence in Assessment Appeals

M/s COOPERATIVE CANE DEVELOPMENT COUNCIL ETC. ETC. Versus PR COMMISSIONER OF INCOME TAX

SC granted leave and remitted tax assessment appeals to ITAT for fresh adjudication. Court noted lack of clarity on Section 80P exemption clause. ... Exemption u/s 80P - appellants has submitted that they would like to place on record additional documents, including the statutory rules, which may have bearing on the nature of income, and entitlement to exemption under Section 80P - HED THAT:- We permit the appellants to file the said documents, including the statutory rules, within a period of four weeks from today. The respondent i.e. Revenue would be entitled to file additional documents and also place written reply on record within a period of eight weeks from the date a copy of the documents is furnished. Accordingly, we would set aside the impugned order passed by the High Court and the Tribunal with the request that the Tribunal would decide the issue of exemption under Section 80P on merits and in accordance with law without being influenced and being bound by the earlier orders passed by them and the High Court. We would clarify that the above direction would not entitle either the Revenue or the assessee to reopen the closed cases where assessments have become final. The Supreme Court of India, through Hon'ble Justices Sanjiv Khanna and Bela M. Trivedi, granted leave and remitted the appeals concerning assessment years under the Income Tax Act, 1961, to the Income Tax Appellate Tribunal (ITAT) for fresh adjudication. The Court noted 'lack of clarity on facts and the exemption clause under sub-section 2 to Section 80P' relied upon by the assessee. The appellants were permitted to file additional documents, including statutory rules, within four weeks; the Revenue may respond with documents and written replies within eight weeks thereafter.The Court set aside the impugned orders of the High Court and Tribunal, directing the ITAT to decide the exemption issue under Section 80P 'on merits and in accordance with law without being influenced and being bound by the earlier orders.' It clarified that this would not allow reopening of finalized assessments. The ITAT was urged to dispose of the appeals expeditiously, preferably within eight months, with the next hearing fixed for January 10, 2022. The Civil Appeals and all pending applications were disposed of accordingly.