G 1707 ECHOOR PACCS LTD.,KANCHIPURAM V. ITO, WARD-1, KANCHIPURAM

ITA 3200/CHNY/2024

AI Insights

The case involves G 1707 Echoor PACCS Ltd., an Agricultural credit Cooperative Society, which did not file a return of income for the Assessment Year 2018-19. The Assessing Officer (A.O.) issued a notice under section 148 of the Income Tax Act after discovering a withdrawal of Rs. 1,09,30,000 from the assessee's bank account. The assessee filed a return claiming a deduction under section 80P(2)(a)(i) but did not respond to subsequent notices, leading the A.O. to make an addition of Rs. 1,14,30,000 as unexplained cash deposits and disallow the deduction claimed. The assessee's appeal to the CIT(A) was dismissed due to the late filing of the return. The Tribunal found that the lower authorities had not provided a proper opportunity to the assessee and thus remitted the case back to the A.O. for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107164 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GAUTHAMI MANIVASAGAM
• Assessee Lawyers: GIRISH KUMAR
• Section: 147; 148; 139(1); 69A; 80P

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी जॉज\u001c जॉज\u001c क े, उपा \u001e\u001f एवं \u0019ी एस. आर. रघुना था , लेखा सद+ क े सम\u001f BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3200/Chny/2024 िनधा \u001cरण वष\u001c /Assessment Year: 2018-19 G 1707 Echoor PACCS Ltd., G1707 Echoor Co-op. Society, Echoor B.O., Kanchipuram – 631 604. [PAN: AABAG 2451K] Vs. The Income Tax Officer, Ward-1, Kanchipuram. (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीला थH की ओर से/ Appellant by : Shri Girish Kumar, Advocate JKथH की ओर से /Respondent by : Ms. Gauthami Manivasagam, JCIT सुनवा ई की ता रीख/Date of Hearing : 19.02.2025 घोषणा की ता रीख /Date of Pronouncement : 21.02.2025 आदेश / O R D E R PER S.R. RAGHUNATHA, A.M : This appeal filed by the assessee is directed against the order passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, [hereinafter “CIT(A)”] for the assessment year 2018-19, vide order dated 14.10.2024. ITA No.3200/Chny/2023 :- 2 -: 2. The assessee is an Agricultural credit Cooperative Society that did not file return of income for the A.Y 2018-19. Based on the information, the assessee had withdrawn Rs. 1,09,30,000/- from its Bank account, the A.O issued notice u/s. 148 of the Act to the assessee and the assessee chose to remain silent. The A.O then proceeded with re-assessment proceedings and issued statutory notices to the assessee. In response to notice u/s. 148 of the Act, the assessee filed its return of income, claiming a deduction u/s. 80P(2)(a)(i) of the Act of Rs. 2,43,136/-. As the assessee had not filed any further reply to the notices, the A.O issued show cause notices dated 14.03.2023 & 24.03.2023 to the assessee. Since, the assessee did not respond for the show cause notices, the A.O had passed an order u/s. 147 of the Act dated 29.03.2023 by making an addition of Rs. 1,14,30,000/- u/s. 69A of the Act on account of unexplained cash deposits and also disallowed deduction claimed u/s. 80P(2)(a)(i) of the Act as the assessee had not filed the return of income within due date u/s. 139(1) of the Act. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A). 3. On appeal, the Ld. CIT(A) also dismissed the appeal of the assessee on the ground that the assessee did not file its return of ITA No.3200/Chny/2023 :- 3 -: income for the A.Y 2018-19 within due date allowed u/s. 139(1) of the Act and hence, not eligible for deduction u/s. 80P of the Act. 4. The Ld. Counsel for the assessee prayed for setting aside the order of the Assessing Officer for re-adjudication, since the case was not prosecuted before the Assessing Officer and the same has been confirmed by the Ld. CIT(A) without any discussion. 5. Per contra, the Ld. DR relied on the orders of the lower authorities and prayed for confirming the impugned order. 6. We have heard both the parties and gone through the order of the lower authorities below. It is noted that the AO and that of the Ld. CIT(A) have passed the orders without giving proper opportunity to the assessee. Therefore, to meet the ends of justice by providing one more opportunity to the assessee, we remit the matter back to the file of the AO for denovo adjudication. We also direct the assessee to appear before the AO and at liberty to submit the relevant details before the AO for adjudication of the case. ITA No.3200/Chny/2023 :- 4 -: 7. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 21st February, 2025. Sd/- Sd/- (जॉज\u001c जॉज\u001c क े) (George George K) उपा\u001e\u001f / Vice President (एस. आर. रघुनाथा) (S.R. Raghunatha) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 21st February, 2025. आदेश क\u0019 \bितिल\u001cप अ\u001dे\u001cषत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b\tथ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "