BICHOLIM ELECTRICITY EMPLOYEES CO OPERATIVE CREDIT SOCIETY LIMITED,BICHOLIM V. INCOME TAX OFFICER, PANAJI

ITA 32/PAN/2026

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The case involves the Bicholim Electricity Employees Cooperative Credit Society Limited, which appealed against the order of the CIT(A) sustaining the denial of deduction under section 80P(2) of the Income Tax Act, 1961. The assessee had claimed a deduction of Rs. 44,93,620 in their return for the assessment year 2024-25, which was disallowed by the Assessing Officer (AO) under section 143(1) of the Act. The CIT(A) upheld this decision, leading to the appeal before the ITAT. The primary contention was the incorrect application of the new tax regime provisions under section 115BAD, which the assessee argued was not applicable, thus affecting their eligibility for the deduction under section 80P(2).

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 841276 (ITAT-PANAJI)
• Duration Of Justice: 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2024-2025
• Appeal Filed On: 16-01-2026
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANKET DESHMUKH.
• Assessee Lawyers: SHYAM J KAMAT
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER I T A. No.32/PAN/2026 (A.Y. 2024-25) Bicholim Electricity Employees Cooperative Credit Society Limited, Right Wing, Groundfloor, Govt Multipurpose Building, Mapusa-403504, Goa. Vs . I T O, National e Assessment Centre, Delhi. PAN.NO..AAAAB4640G (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) Assessee by Shri.Shyam J Kamat.AR Revenue by SHri.Sanket Deshmukh.Sr.DR सुनवाई की तारीख/Date of Hearing 17.02.2026 घोषणा की तारीख/Date of Pronouncement 27.02.2026 ORDER PER PAVAN KUMAR GADALE ,JM: The assesse has filed the appeal against the order of the ADDL/JCIT (A) -3 Chennai passed U/sec 143(1) and u/sec 250 of the Act. The assessee has raised the grounds of appeal challenging the order of the CIT(A) sustaining the denial of deduction u/sec80P(2) of the Act made by the CPC/ Assessing Officer. 2. The brief facts of the case are that, the assessee is a registered cooperative credit society and is engaged in providing credit facilities to its members. The assessee has Printed from counselvise.com 2 ITA. No.32/PAN/2026 Bicholim Electricity Employees Cooperative Credit Society Limited. filed the return of income for A.Y.2024-25 disclosing a total income of Rs.Nil after claiming deduction u/se 80P of the Act of Rs.44,93,620/-.Whereas the assessee has filed Form.10-IF u/sec115BAD of the Act exercising option for new regime for lower rate of tax applicability. The return of income was processed u/sec143(1) of the Act disallowing the claim of deduction u/sec80P of the Act and determined the assessed income of Rs.44,93,620/- vide order dated14.10.2025 3. Aggrieved by the order, the assesse has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts and submissions but has confirmed the action of the A.O/CPC and dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal. 4. At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming the action of the Assessing officer overlooking the information filed. The Ld.AR submitted that the AO/CPC erred in overlooking the proviso to Sec115 BAD(1) and sec115BAD(2) of the Act as the option of new regime becomes invalid and the assessee has erroneously filed Form.10-IF u/sec115BAD of the Act exercising option for new regime for benefit of lower rate Printed from counselvise.com 3 ITA. No.32/PAN/2026 Bicholim Electricity Employees Cooperative Credit Society Limited. of tax applicability.Further the Ld.AR submitted that the assesse has a good case on merits and shall substantiate with the material evidences and prayed for an opportunity to explain before the lower authorities. Per Contra, the Ld.DR supported the order of the CIT(A). 5. Heard the rival submissions and perused the material on record. The crux of the disputed issue envisaged by the Ld.AR that the CIT(A) has erred in sustaining the denial of deduction u/sec80P(2) of the Act made by the CPC/ Assessing Officer without providing proper opportunity and overlooking the facts and material evidences. Further the CIT(A) has not considered the information supporting the claim of the assessee in spite of the fact that the assessee case does not satisfy the conditions u/sec115BAD(2) of the Act though the assessee has erroneously filed Form.10-IF u/sec115BAD of the Act exercising option for new regime for lower rate of tax applicability. The Ld.AR contentions are that the CIT(A) erred in sustaining the adjustment u/sec143(1) of the Act made by CPC which are not covered within the permissible adjustments.Hence considering the overall facts, circumstances and principles of natural justice shall provide with one more opportunity of hearing and accordingly restore the disputed issue to the file of the Assessing officer for afresh adjudication on merits and the Printed from counselvise.com 4 ITA. No.32/PAN/2026 Bicholim Electricity Employees Cooperative Credit Society Limited. CIT(A) shall provide adequate opportunity of being heard to the assessee and the assessee should also cooperate in submitting the information and the grounds of appeal of the assessee are allowed for statistical purpose. 6. In the result, the appeal filed by the assessee is allowed for statistical purpose. Order pronounced on 27/02/2026 as per rule 34(5) of the ITAT Rules 1963. Sd/- (PAVAN KUMAR GADALE) JUDICIAL MEMBER Panaji Dated: 27/02/2026 Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT 6. Guard file. //True Copy// BY ORDER, (Asstt. Registrar)ITAT, Panaji Printed from counselvise.com 5 ITA. No.32/PAN/2026 Bicholim Electricity Employees Cooperative Credit Society Limited. Date Initial 1. Draft dictated on PS 2. Draft placed before author PS 3. Draft proposed & placed before the second member PS 4. Draft discussed/approved by Second Member. PS 5. Approved Draft comes to the Sr.PS/PS PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed Printed from counselvise.com "