INCOME TAX OFFICER, WARD-1, GADAG V. THE NARAGUND TALUKA PRATHAMIKA SHIKSAK SHIKSAKIYAR CO OP CREDIT S LIMITED, NARGUND

MA 27/BANG/2025

AI Insights

The case involves a miscellaneous application by the revenue against an order of the Income Tax Appellate Tribunal, which pertained to the interest income of Rs. 47,41,931/- assessed under section 80P(2)(a)(i) of the Income Tax Act. The revenue contended that the Tribunal's earlier finding was incorrect as the interest income was considered by the Assessing Officer (AO) in the intimation under section 143(1) and in the assessment order dated 13/04/2021. The respondent, M/s. The Naragund Taluka Prathamika Shiksa Shiksakiyar Co-op. Credit Society Ltd., defended the Tribunal's earlier decision, citing that the AO had not discussed this interest income in the assessment order and that the issue was not raised before the Commissioner of Income Tax (Appeals) [CIT(A)]. The Tribunal upheld its previous decision, dismissing the revenue's application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 706833 (ITAT-BANGALORE)
• Duration Of Justice: 2 month(s) 19 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-07-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 21-04-2025
• Other Referred Cases: CSI Credit Co-operative Society vs. ITO, Infosoft Global (P) Ltd. vs. DCIT
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GANESH R. GHALE; STANDING
• Assessee Lawyers: SIDDESH N. GADDI
• Keywords: Set aside

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL SMC-‘B’ BENCH : BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI SOUNDARARAJAN K., JUDICIAL MEMBER M.A. No. 27/Bang/2025 (in ITA No. 1288/Bang/2024) Assessment Year : 2018-19 The Income Tax Officer, Ward – 1 & TPS, Gadag. Vs. M/s. The Naragund Taluka Prathamika Shiksa Shiksakiyar Co- op. Credit Society Ltd., Near bus stand, Nargund 582 207. Karnataka. PAN: AACAT9998F APPELLANT RESPONDENT Assessee by : Shri Siddesh .N. Gaddi, CA Revenue by : Shri Ganesh R. Ghale, Standing Counsel for Dept. Date of Hearing : 04-07-2025 Date of Pronouncement : 10-07-2025 ORDER PER SOUNDARARAJAN K., JUDICIAL MEMBER This is a miscellaneous application filed by the revenue against the order dated 04/12/2024 in ITA No. 1288/Bang/2024 requesting the Tribunal to rectify the mistake by amending the order. 2. At the time of hearing, the Ld.DR took us through the para no. 10 of the order in which the Tribunal had find fault with the finding given by the Ld.CIT(A) insofar as the interest income of Rs. 47,41,931/- is concerned. The Ld.DR further submitted that the said interest income was originally Page 2 of 4 M.A. No. 27/Bang/2025 (in ITA No. 1288/Bang/2024) considered by the AO while communicating the intimation u/s. 143(1) and therefore the AO while passing the order on 13/04/2021 had taken the said interest income also while computing the income. Therefore, the Ld.DR submitted that the finding given by the Tribunal is not correct and requires amendment to the said order. 3. The Ld.AR submitted that in the assessment order dated 13/04/2021, the AO had assessed a total income of Rs. 3,09,103/- but in the computation sheet, the AO had taken the interest income of Rs. 47,33,962/- and therefore the findings given by the Tribunal is in order. The Ld.AR also filed the copy of the order of SMC Bench of the Coordinate Bench of this Tribunal in ITA No. 1090/Bang/2022 dated 16/01/2023 in the case of CSI Credit Co-operative Society vs. ITO and another order of the Hon’ble Kolkata Tribunal in the case of Infosoft Global (P) Ltd. vs. DCIT in ITA No. 501/Kol/2024 dated 21/03/2025 and prayed to dismiss the M.A. filed by the revenue. 4. We have heard the arguments of both sides and perused the materials available on record. 5. In the assessment order dated 13/04/2021, the AO had discussed about the interest income of Rs. 3,09,103/- and not discussed the other interest income which was considered in the 143(1) proceedings. As against the said order of the AO, the assessee also preferred an appeal before the Ld.CIT(A) disputing the disallowance of Rs. 3,09,103/-. The Ld.CIT(A) while deciding the appeal filed by the assessee, had made the observation about the interest of Rs. 47,41,931/- which was claimed u/s. 80P(2)(a)(i) of the Act which was not in dispute before the Ld.CIT(A) and which was also not found place in the assessment order dated 13/04/2021. In that circumstances only, the Tribunal had given the following finding in para no. 10. “10. Insofar as the direction given by the Ld.CIT(A), in respect of the interest income of Rs. 47,41,931/-, we are of the opinion that this issue is not raised by the AO and the Page 3 of 4 M.A. No. 27/Bang/2025 (in ITA No. 1288/Bang/2024) assessee also not raised the issue before the Ld.CIT(A) and therefore the finding given in respect of the said interest income is not correct and, therefore, we set aside the findings given by the Ld.CIT(A) in respect of the said interest income. Further, before remitting the issue, the Ld.CIT(A) could have obtained a remand report from the AO and thereafter orders can be passed. But unfortunately, the Ld.CIT(A) had not done anything, but remitted the issue to the AO. We are also having a doubt whether the Ld.CIT(A) has power to remand the issue under the provisions of the Act and also has power to enhance the assessment without providing a reasonable opportunity to the assessee. In this case, the Ld.CIT(A) had remitted the issue and also enhanced the assessment without hearing the assessee. Therefore the order of the Ld.CIT(A) is against the provisions and not sustainable in law.” 6. We, therefore, find that there is no mistake in the order passed by this Tribunal dated 04/12/2024 and therefore there is no requirement to amend the said order as prayed for by the revenue. 7. In the result, the miscellaneous application filed by the revenue is dismissed. Order pronounced in the open court on 10th July, 2025. Sd/- Sd/- (WASEEM AHMED) (SOUNDARARAJAN K.) Accountant Member Judicial Member Bangalore, Dated, the 10th July, 2025. /MS / Page 4 of 4 M.A. No. 27/Bang/2025 (in ITA No. 1288/Bang/2024) Copy to: 1. Appellant 2. Respondent 3. CIT 4. DR, ITAT, Bangalore 5. Guard file 6. CIT(A) By order Assistant Registrar, ITAT, Bangalore "