BOARD OF REVENUE SALARY EARNERS COOPERATIVE SOCIETY LIMITED,LUCKNOW V. INCOME TAX OFFICER, RANGE-2(1), LUCKNOW

ITA 17/LKW/2025

AI Insights

The case involves the Board of Revenue Salary Earners Cooperative Society Limited, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi. The dispute centered on the assessment of income for the year 2018-19, where the Assessee, a cooperative credit society, declared a significantly lower income than what was assessed by the Income Tax Officer (ITO). The ITO disallowed certain deductions under Section 80P of the Income Tax Act, 1961, leading to a higher assessed income. The NFAC dismissed the Assessee's appeal ex-parte, prompting the Assessee to approach the Income Tax Appellate Tribunal, Lucknow.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471431 (ITAT-LUCKNOW)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJEEV KRISHNA SHARMA
• Assessee Lawyers: ROHIT BHALLA
• Keywords: Principle of natural justice
• Section: 143(3); 142(1); 143(1); 80P; 2

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “B”, LUCKNOW BEFORE SHRI. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA No.17/LKW/2025 Assessment Year: 2018-19 Board of Revenue Salary Earners Cooperative Society Limited Chakbast Road Quaiserbagh, Lucknow v. Income Tax Officer Range 2(1) Lucknow TAN/PAN:AABAB5745M (Appellant) (Respondent) Appellant by: Shri Rohit Bhalla, C.A. Respondent by: Shri Sanjeev Krishna Sharma, D.R. Date of hearing: 20 02 2025 Date of pronouncement: 24 02 2025 O R D E R PER SUDHANSHU SRIVASTAVA, J.M.: This appeal has been preferred by the assessee against the order dated 11.11.2024, passed by the ld. Commissioner of Income Tax (Appeal), National Faceless Appeal Centre (NFAC), Delhi for Assessment Year 2018-19. 2. The brief facts of the case are that the assessee is a Co- operative Credit Society, registered under Uttar Pradesh Co- operative Societies Act, 1966. The assessee filed its return of income for the year under consideration on 30.03.2019, declaring a total income of Rs.7,97,500/-. The assessee had also claimed deduction under Section 80P of the Income Tax Act, 1961 (hereinafter called “the Act’). The return was processed under ITA No.17/LKW/2025 Page 2 of 5 section 143(1) of the Act. Subsequently, the case was selected for Limited Scrutiny under CASS. The Assessing Officer (AO) issued notice under section 142(1) of the Act. In response to the notice, the assessee submitted that “the assessee is Co-operative Society engaged in the business of providing credit facilities to its members”. The AO, from a perusal of record, noticed that the assessee had advanced loans to its regular members/Employee Housing Loan, totaling to Rs.12,41,72,834/- and had earned profit/interest to the tune of Rs.1,40,39,520/- during the year under consideration. The profit/interest so earned by the assessee was disallowed by the AO under section 80P(2)(a)(i) of the Act and was added to the total income of the assessee. The AO completed the assessment under section 143(3) read with section 144B of the Act, assessing the total income of the assessee at Rs.1,48,37,020/-. 3. Aggrieved, the Assessee preferred an appeal before the NFAC. The appeal of the Assessee came to be dismissed in limine by passing an order ex-parte qua the Assessee. 4. Now, the assessee has approached this Tribunal challenging the dismissal of its appeal by the NFAC by raising the following grounds of appeal: 1. That the Ld. Assessing Officer (herein referred to as the Ld. AO) as well as the Ld. Commissioner of Income Tax (Appeals), ITA No.17/LKW/2025 Page 3 of 5 [here-in-after referred to as the Ld. CIT(A)] have erred in assessing the income at Rs.1,48,37,020/- against the returned income of Rs.7,97,500/- and sustaining addition made by the Ld. Assessing Officer against the facts and circumstances of the case. 2. That the Ld. CIT (A), has erred in law as well as on facts of the case in denying the claim of deduction made by the appellant Society u/s. 80P(2)(a)(i) of the Act. The claim of deduction so denied, being totally contrary to the provision of law and facts be kindly be allowed as claimed. 3. That the Ld. CIT(A) has erred in law and on facts in upholding the disallowance made by the Ld. AO without appreciating the facts and explanations provided by the appellant in the course of appeal proceedings, and dealing in the merits of the case and written submissions filed before the Ld. CIT(A). 4. That the appellate order was passed in haste without providing sufficient opportunity to the appellant which is against the principles of natural justice. 5. That the appellant craves leave to add to or amend the aforesaid grounds before disposal of the appeal. 5. The ld. Authorized Representative for the Assessee submitted before us that due to pre-occupation of the Accountant of the assessee in finalization of accounts, the assessee could not be represented before the NFAC, resulting into passing of an order ex-parte qua the Assessee. The ld. AR prayed ITA No.17/LKW/2025 Page 4 of 5 that the Assessee’s appeal may be restored to the file of the NFAC for the purpose of adjudication on merits. 6. Since the order passed by NFAC was an ex-parte order, the ld. Senior D.R. had no objection to the restoration of appeal to the NFAC. 7. We have heard both the parties and have also perused the material on record. Looking into the facts of this case, we are of the considered view that the Assessee deserves one more opportunity to present its case and, therefore, in the facts of the case, we restore this file to the Office of the NFAC with the direction to hear the appeal on merits. We also caution the Assessee to fully comply with the notices and directions of the NFAC in the set-aside proceedings when called upon to do so, failing which, the NFAC would be at complete liberty to pass the order in accordance with law, based on material available on record even if it is ex-parte qua the assessee. 8. In the result, the appeal of the Assessee stands allowed for statistical purposes. Order pronounced in the open Court on 24/02/2025. Sd/- Sd/- [ANADEE NATH MISSHRA] [SUDHANSHU SRIVASTAVA] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED:24/02/2025 JJ: ITA No.17/LKW/2025 Page 5 of 5 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DR By order Assistant Registrar "