COOPERATIVE CANE DEVELOPMENT UNION LTD BALRAMPUR,BALRAMPUR V. AO NFAC DELHI, NFAC NEW DELHI

ITA 629/LKW/2024

AI Insights

The case involves the Cooperative Cane Development Union, Balrampur Ganna Samiti, which is a cooperative society engaged in the marketing of sugarcane and providing credit facilities to its members. For the assessment year 2020-21, the society filed a return declaring NIL income, which was subjected to a complete scrutiny by the Assessing Officer. An ex-parte assessment order was passed, determining the total income at Rs.53,05,50,056/-, with an equivalent addition made. The society's appeal to the CIT(A) was dismissed, leading to the current appeal before the ITAT. The primary contention was the lack of a reasonable opportunity for the assessee to present its case during the assessment and appellate proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 784851 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-11-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2020-2021
• Appeal Filed On: 22-10-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VACHASPATI
• Assessee Lawyers: J.N. SHUKLA
• Keywords: Set aside; Opportunity of being heard
• Section: 143(3)

Judgement Text

"I.T.A. No.629/Lkw/2024 Assessment Year:2020-21 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘B’, LUCKNOW BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER AND SHRI SUBHASH MALGURIA, JUDICIAL MEMBER I.T.A. No.629/Lkw/2024 Assessment Year:2020-2021 Cooperative Cane Development Union, Balrampur Ganna Samiti, District – Balrampur. PAN:AAALC0029P Vs. Assessing Officer NFAC (Appellant) (Respondent) O R D E R PER SUBHASH MALGURIA: J.M. This appeal vide I.T.A. No.629/Lkw/2024 has been filed by the assessee for assessment year 2020-21 against impugned appellate order dated 18/09/2024 (DIN & Order No.ITBA/NFAC/S/250/2024- 25/1068764818(1) of Commissioner of Income Tax (Appeals) [“CIT(A)”] for short]. 2. The facts of the case, in brief, are that the assessee is a Co-operative Society, registered under the Uttar Pradesh Co-operative Societies Act, 1965. The primary activity of the assessee is marketing of sugarcane Appellant by Shri J. N. Shukla, Advocate Respondent by Shri Vachaspati, CIT (D.R.) Printed from counselvise.com I.T.A. No.629/Lkw/2024 Assessment Year:2020-21 2 produced by its members and also extending credit facilities to its members for purchase of seeds and other agricultural needs. The assessee filed its return of income for the year under consideration on 28/12/2020 declaring NIL income. The case of the assessee was selected for complete scrutiny. The Assessing Officer completed the assessment and passed assessment order under section 143(3) read with section 144B of the I. T. Act and determined the total income of the assessee at Rs.53,05,50,056/- and made addition of Rs.53,05,50,056/-. The order passed by the Assessing Officer was an ex-parte order. Being aggrieved, the assessee went in appeal before the learned CIT(A). Vide impugned appellate order dated 18/09/2024, the assessee’s appeal was dismissed by the learned CIT(A). Now the assessee is in appeal before the Income Tax Appellate Tribunal. 3. Being aggrieved, the assessee has filed the present appeal in Income Tax Appellate Tribunal against the aforesaid impugned appellate order of learned CIT(A). In the course of appellate proceedings in ITAT learned Counsel for the assessee submitted that the Assessing Officer has passed ex-parte assessment order without providing reasonable opportunity to the assessee and also, order has been passed by learned CIT(A) without providing reasonable opportunity to the assessee. In view of the foregoing, learned Counsel for the assessee submitted, the impugned order of learned CIT(A) should be set aside and the issue in dispute should be restored back to the file of Assessing Officer with the direction to pass fresh order in accordance with law after providing reasonable opportunity to the assessee. The learned Sr. D.R. for the Revenue left the matter to the discretion of the Bench. Printed from counselvise.com I.T.A. No.629/Lkw/2024 Assessment Year:2020-21 3 4. We have heard the rival parties and have gone through the material placed on record. On perusal of records, it is seen that the assessment order was passed ex-parte qua the appellant assessee and the appellate order of learned CIT(A) also has been passed in a summary manner, without giving reasonable opportunity to the assessee. In view of the foregoing, the order of learned CIT(A) is set aside and the issue in dispute regarding the aforesaid addition is restored back to the file of the Assessing Officer with the direction to pass de novo order on disputed issues regarding additions made in the assessment order; in accordance with law after providing reasonable opportunity of being heard to the assessee. 5. In the result, the appeal of the assessee is partly allowed for statistical purposes. (Order was pronounced in the open court on 10/11/2025) Sd/. Sd/. (ANADEE NATH MISSHRA) ( SUBHASH MALGURIA ) Accountant Member Judicial Member Dated:10/11/2025 *Singh Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T. Printed from counselvise.com "