GRAMEEN SEVA SAHAKARI SANGH NIYAMITA,SHIRALI V. INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, DELHI

ITA 284/PAN/2024

AI Insights

The case involves Grameena Seva Sahakari Sangha Niyamita, a cooperative credit society, which appealed against the order of the National Faceless Appeal Centre (NFAC) / CIT(A) concerning the denial of a deduction under section 80P of the Income Tax Act. The Assessing Officer had initially denied the deduction and assessed a higher income for the A.Y. 2018-19. The CIT(A) dismissed the appeal due to non-compliance and non-appearance of the assessee at the hearings. The Tribunal, considering the principles of natural justice, decided to provide another opportunity to the assessee and remitted the case back to the CIT(A) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32345 (ITAT-PANAJI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANIKANDAN.S.
• Keywords: Set aside; Principle of natural justice
• Section: 143(3); 142(1); 250; 80P

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI G D PADMAHSHALI ACCOUNTANT MEMBER I T A. Nos. 284/PAN/2024 (A.Y. 2018-19 ) Grameena Seva Sahakari Sangha Niyamita, Shirali Main road,Shirali, North Kanara-581320 Karnataka. Vs . I T O, National e Assessment Centre, Delhi. PAN .No.AABAG8386K (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Assessee by None(letter 3-03-25) Revenue by Shri.Manikandan.S.Sr.DR सुनवाई कȧ तारȣख/Date of Hearing 04.03.2025 घोषणा कȧ तारȣख/Date of Pronouncement 05.03.2025 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of National Faceless Appeal Centre (NFAC) Delhi / CIT(A) passed u/sec 143(3) and u/sec 250 of the Act. The assessee has raised the grounds of appeal challenging the ex-parte order of the CIT(A). 2. The brief facts of the case are that, the assessee is a cooperative credit society and has filed the return of income for the A.Y 2018-19 on 30.10.2018 disclosing a total income of Rs.40,430/- after claiming deduction of Rs.79,13,137/- u/sec 80P of the Act. Subsequently the case was selected for scrutiny under CASS and notice 2 ITA. No. 284/PAN/2024 Grameena Seva Sahakari Sangha Niyamita. u/sec143(2) and u/sec 142(1) of the Act are issued calling for details in respect of claims and the information supporting the return of income filed. The assesse has filed the details through ITBA and the Assessing Officer (A.O) has dealt on the submissions/details and find that the assessee society is not eligible for claim of deduction under section 80P of the Act and the A.O. was not satisfied with the explanations and dealt on the provisions and judicial decisions and denied the claim of deduction u/sec80P of the act and assessed the total income of Rs.79,53,570/- and passed the order u/sec 143(3) r.w.s143(3A)&143(3B) of the Act dated 03.04.2021. 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 findings of the AO and has issued notices of hearing and since there was no compliance by the assesse to notices. Therefore the CIT(A) considering the information on record has dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal. 4. We heard the Ld.DR submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance nor appearance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assesse is not interested in prosecuting the appeal and passed the ex parte order. The 3 ITA. No. 284/PAN/2024 Grameena Seva Sahakari Sangha Niyamita. CIT(A) has issued the notices of hearing on 15.11.2022,8.07.2024,18.07.2024,12.08.2024&12.09.2024 referred at Para 8 of the order and there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assesse has raised grounds of appeal challenging the addition made by the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the facts and principles of natural justice, we shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, we set aside the order of the CIT(A) sustaining the addition made by the A.O and remit the disputed issue to the file of the CIT(A) to adjudicate afresh and the assesse should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of the Appeal. And, we allow the grounds of appeal of the assesse for statistical purpose. 5. In the result, the appeal filed by assessee is allowed for statistical purposes. Order pronounced in the open court on 05.03.2025. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 05/03/2025 4 ITA. No. 284/PAN/2024 Grameena Seva Sahakari Sangha Niyamita. 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 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 "