GUJARAT VEPARI MAHAMANDAL SAHKARI AUDYOGIK VASAHAT LIMITED,AHMEDABAD V. THE ITO, WARD-3(3)(5), AHMEDABAD

ITA 288/AHD/2025

AI Insights

The case involves Gujarat Vepari Mahamandal Sahkari Audyogik Vasahat Limited, a cooperative society, appealing against the order of the CIT(A) which dismissed their appeal on technical grounds without addressing the substantive issues raised. The assessee had filed a return declaring nil income for A.Y. 2022-23, which was selected for scrutiny under CASS due to concerns over deductions claimed under section 80P. The Assessing Officer made additions and disallowed deductions claimed by the assessee, which led to the appeal. The CIT(A) dismissed the appeal due to a clerical error in the citation of the relevant section of the Income Tax Act in the appeal form. The Tribunal found this dismissal on technical grounds without merit adjudication to be inappropriate and remanded the case back to the CIT(A).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126635 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S. K. AGAL
• Assessee Lawyers: M.S. CHHAJED
• Keywords: Principle of natural justice
• Section: 143(3); 143(2); 143(1); 80P; 2(A)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No.288/AHD/2025 (Assessment Year: 2022-23) Gujarat Vepari Mahamandal Sahkari Audyogik Vasahat Limited Odhav Road, Odhav, Ahmedabad-382410 Vs. Income Tax Officer, Ward (3)(3)(5), Aayakar Bhavan, Vejalpur Ahmedabad-380015 [PAN No.AAAAG0348N] (Appellant) .. (Respondent) Appellant by : Shri M. S. Chhajed, A.R. Respondent by: Shri S. K. Agal, Sr. DR Date of Hearing 22.04.2025 Date of Pronouncement 23.04.2025 O R D E R This appeal is filed by the assessee is against the order passed by the CIT(A)- ADDL/JCIT(A)-4, Bengaluru on 27.12.2024 for A.Y. 2022-23. 2. The grounds of appeal are as under:- “1. The order passed by the Ld. CIT(A) is against the law, equity and principle of natural justice. 2. The Ld. CIT(A) has erred in law and on facts in dismissing appeal on clerical error wherein assessment order mentioned in Form 35 143(1) instead of 143(30, though in copy of assessment order submitted with Form No. 35. 3. Assessment order passed by the Ld. A.O. is void & illegal as he has passed order for the issue which are not selected under CASS makes assessment void & illegal. 4. The Ld. CIT(A) has erred in law and on facts in not dealing ground of appellant in regards to addition made by Ld. A.O. of entire sale consideration of long term asset as short term capital gain of Rs. 16,28,950/-. 5. The Ld. CIT(A) has erred in law and on facts in not dealing of ground of appellant in regards to a deduction allowable U/S 80-P of the Act of Rs. 13,49,634/-. ITA No. 288/Ahd/2025 Gujarat Vepari Mahamandal Sahkari Audyogik Vasahat Ltd. vs. ITO, A.Y. 2022-23 2 6. The appellant craves liberty to add, amend, alter or modify all or any grounds of appeal before final appeal.” 3. The assessee is a Co-operative Society. The assessee filed its return of income for A.Y. 2022-23 on 15.09.2022 declaring total income at Nil under the Income Tax Act, 1961. The case of the assessee was selected for complete scrutiny under CASS for the reason “claim of deduction u/s 80P by entities that have received large amount of interest from a banking company” and required statutory notices u/s 143(2) was issued on 02.06.2023 and was duly served on the assessee. The assessee filed the reply and the detailed information. After going through the same, the Assessing Officer made addition of Rs. 16,28,950/- in respect of total sale consideration of immovable property and disallowed the claim of the assessee u/s 80P(2)(d) amounting to Rs. 13,49,634/-. 4. Being aggrieved by the assessment order the assessee filed the appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that the CIT(A) has dismissed the appeal only on the ground that the assessee in advertently mentioned the provision of Section 143(1) in the column 2(a) of Form No. 35 in respect of order which is challenged instated of Section 143(3) read with Section 144B of the Income Tax Act, 1961. The Ld. AR submitted that since the matter was not decided on merit by the CIT(A), the matter may be remanded to the file of the CIT(A) for proper adjudication of the merits after giving hearing to the assessee. 6. The Ld. DR relied upon the assessment order and the order of the CIT(A). 7. Heard both the parties and perused all the relevant material available on record. It is pertinent to note that it is clearly a clerical mistake while mentioning the Section 143(1) instead of Section 143(3) read with Section 144B of the Act and the same would have been rectified. But without giving opportunity of rectifying the said mistake, the CIT(A) dismissed the appeal of ITA No. 288/Ahd/2025 Gujarat Vepari Mahamandal Sahkari Audyogik Vasahat Ltd. vs. ITO, A.Y. 2022-23 3 the technical ground and has not adjudicated the ground of appeal contested by the assessee. Therefore, it will be appropriate to remand this matter to the file of the CIT(A) for proper adjudication of the issues contested by the assessee in Form No. 35 filed before the CIT(A) and the assessment order challenged be taken as Section 143(3) read with Section 144B of the Act only. The CIT(A) is further directed to decide the issue on merits as per Income Tax Act, 1961. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. 8. In result the appeal of the assessee is partly allowed for statistical purpose. This Order pronounced in Open Court on 23/04/2025 Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad: Dated 23/04/2025 TRUE COPY आदेश क\u0007 \b त ल प अ\u0010े षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील\u001bय अ धकरण, अहमदाबाद "