Case Law Details
Liliya Lathi Taluka Sahkari Kharid Vechan Sangh Ltd. Vs ITO (ITAT Rajkot)
Section 80P deduction allowed as same was disallowed for late filing of the income tax return and this delay been condoned by CCIT: ITAT Rajkot
The case of Liliya Lathi Taluka Sahkari Kharid Vechan Sangh Ltd. vs. ITO before the ITAT Rajkot pertained to the denial of a Section 80P deduction due to the late filing of the income tax return for the assessment year 2019-20. The assessee had appealed against the order of the Commissioner of Income Tax (Appeals) [CIT(A)], which upheld the rejection of the deduction claim by the Centralized Processing Centre – Assessing Officer (CPC-AO) under Section 143(1) of the Income Tax Act, 1961. The primary ground for rejection was the delay in filing the return, leading the assessee to file a condonation petition under Section 119(2)(b) of the Act. The Chief Commissioner of Income Tax (CCIT), Rajkot, later allowed this petition through an order dated November 14, 2024, effectively removing the reason for rejection of the Section 80P claim.
During the hearing, the assessee’s counsel requested to withdraw the appeal, as the issue of delayed filing had been resolved through the condonation granted by the CCIT. The Department’s representative had no objections to this request. ITAT Rajkot acknowledged that, with the delay condoned, the appeal had become infructuous and directed the Assessing Officer to pass a consequential order in accordance with the law. As a result, the tribunal allowed the withdrawal of the appeal and dismissed the case accordingly. The order was pronounced in open court on January 20, 2025.
FULL TEXT OF THE ORDER OF ITAT RAJKOT
Captioned appeal filed by the assessee, pertaining to assessment year 2019-20, is directed against the order passed by the Learned Commissioner of Income Tax (Appeal) [in short ‘Ld. CIT(A)’], dated 28/08/2024, which in turn arises out of an assessment order passed by the assessing officer ( CPC-AO) under section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), vide order dated 11.01.2021.
2. At the outset, Learned Counsel for the assessee, begins by pointing out that assessee filed a petition for condonation of delay under section 119(2)(b) of the Act, which has been allowed by the ld. CCIT -Rajkot, vide his order dated 14.11.2024. Since the delay in filing the return of income filed by the assessee has been condoned by the ld. CCIT, which was the sole ground of CPC – AO for rejection of assessee`s claim under section 80P of the Act, therefore, now this appeal becomes infructuous, hence the same may be allowed to be withdrawn.
3. On the other hand, Learned DR for the Revenue did not have any objection if the appeal of the assessee is dismissed as withdrawn.
4. We have heard both the parties. We accept the prayer of the assessee, to the effect that since the delay in filing the return of income, filed by the assessee, has been condoned by the ld. CCIT, which was the sole ground of CPC–AO for rejection of assessee`s claim under section 80P of the Act, therefore, now this appeal becomes infructuous. Therefore, we direct the assessing officer to pass the consequential order, as early as possible, in accordance with law.
5. Based on these facts and circumstances, we permit the assessee to withdraw this appeal.
6. In the result, the appeal of the assessee, is dismissed, as withdrawn.
Order is pronounced in the open court on 20/01/2025
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