INCOME TAX OFFICER WARD 2(1), KOLHAPUR V. SHAHUPURI VYAPARI NAGARI SAHAKARI PAT SANSTHA LTD KOLHAPUR, KOLHAPUR

MA 58/PUN/2024

AI Insights

The case involves the Income Tax Officer, Ward \\u2013 2(1), Kolhapur as the applicant and Shahupuri Vyapari Nagari Sahakari Pat Sanstha Ltd. as the respondent. The dispute centered on the deduction claimed under section 80P of the Income Tax Act, 1961, amounting to Rs.25,68,730, which was initially disallowed in the intimation order under section 143(1) but later allowed by the Tribunal in the appeal against the assessment order under section 143(3). The Revenue filed a Miscellaneous Application seeking to recall the Tribunal's order, arguing that the deduction was not discussed in the assessment order under section 143(3). However, the Tribunal dismissed the application, stating that the issue was decided on merits and there was no error in the original order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714247 (ITAT-PUNE)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-08-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Assessment Year: 2018-2019
• Laws Referred To: Income-Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANISH MEHTA
• Assessee Lawyers: PRAMOD S SHINGTE
• Keywords: Co-operative Credit Society
• Section: 143(3); 142(1)

Judgement Text

" आयकर अपीलीय अधिकरण “एक सदस्य मामला” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / MA No.58/PUN/2024 (Arising out of ITA No.216/PUN/2024) निर्धारण वर्ा / Assessment Year: 2018-19 The Income Tax Officer, Ward – 2(1), Kolhapur Vs. Shahupuri Vyapari Nagari Sahakari Pat Sanstha Ltd., 951, E-Ward, Shahupuri, 6th Lane, Kolhapur-416001 PAN : AABAS0395J अपीलधर्थी /Applicant प्रत्यर्थी / Respondent Assessee by : Shri Pramod S Shingte Department by : Shri Manish Mehta Date of hearing : 16-05-2025 Date of Pronouncement : 06-08-2025 आदेश / ORDER PER ASTHA CHANDRA, JM : This Miscellaneous Application of the Revenue seeks to recall the Tribunal’s Order passed under section 254(1) of the Income-Tax Act, 1961 (the “Act”) in ITA No.216/PUN/2024 dated 20.03.2024 for the Assessment Year (“AY”) 2018-19. 2. The Revenue in its Miscellaneous Application has raised the following contentions:- “Before the Hon'ble ITAT, SMC Bench Pune, the following grounds of appeal were raise by the assessee- In the case, the CIT(A) had confirmed the disallowance made in the Intimation Order dated 31.05.2019 issued u/s 143(1) and subsequently, in the Assessment Order dated 15.03.2021 passed u/s 143(3) of the Act for A.Y. 2018- 19. The said disallowance made was of deduction claimed by the assessee u/s 80P of the I. T. Act, 1961 of Rs.25,68,730/-. Plea of the Assessing Officer: The assessee is a co-operative credit society engaged in providing credit facilities to its members. The ROI was filed by the assessee on 23.07.2018 declaring total income NIL after claiming the deduction u/s. 80P(2)(c)(ii) at Rs.25,68,730/-. The said Return was processed u/s 143(1) of the Act on Printed from counselvise.com 2 M.A. No. 58/PUN/2024, AY 2018-19 31.05.2019 and the deduction claimed by the assessee under section 80P(2)(c)(ii) at Rs.25,68,730/- was denied by CPC in the intimation u/s 143(1) of the Act. and raising the demand of Rs.9,41,258/-. Further, the case was selected for Limited Scrutiny assessment under the E-assessment Scheme, 2019 on the reason of i) Investments/Advances/Loans ii) Deduction from Total income under chapter VI-A. Therefore, the AO NeAC, Delhi completed the scrutiny assessment u/s 143(3) r.w.s. 143(3A) r.w.s. 143(3B) of the Act. for A.Y. 2018-19 on 15.03.2021 as under: ASSESSMENT ORDER 1. The case was selected for Limited Scrutiny assessment under the E- assessment Scheme, 2019 on the following issues: S. No. Issues i. Investments/Advances/Loans ii. Deduction from Total Income under Chapter VI-A A notice dated 28/09/2019 under Section 143(2) of the Income-tax Act, 1961 was issued. Subsequently, a notice under Section 142(1) was issued on 20/12/2019 and 22/01/2021 for which reply was received on 09/01/2020, 10/01/2020 and 04/03/2021 submitting the relevant documents and explaining the issue. 1. In view of the material available on record, no addition on the issue is made. 2. On the basis of relevant materials on record pertaining to above criteria, the total income is assessed at Rs. 25,68,730/. as per order passed by CPC under Section 143(1) of the Act. The sum payable or refund of any amount due on the basis of the assessment is determined as per the notice of demand. In view of the above assessment order, the deduction claimed by the assessee under section 80P(2)(c)(ii) at Rs.25,68,730/- was denied by CPC in the intimation u/s 143(1) of the Act. dated 31.05.2019. The AO adopted the same income in the assessment order dated 15/03/2021 u/s 143(3) r.w.s. 143(3A) & 143(3B) of the Act and completed the assessment without making any addition / disallowance to the income assessed u/s 143(1). Aggrieved by the assessment order u/s 143(3) r.w.s. 143(3A) & 143(3B) of the Act, dated 15/03/2021 the assessee was filed in appeal before the Hon'ble CIT(A). While deciding the appeal, the Hon'ble CIT(A) observed that while addition of Rs.25,68,730/- was made in the 143(1) order, the assessee sought adjudication / relief against order u/s 143(3) of the Act. The Hon'ble CIT(A) held that the addition of Rs.25,68,730/- cannot be adjudicated upon in appeal against order u/s 143(3) order since the Assessing Authority had merely mentioned in the computation of income that addition of Rs.25,68,730/- was made in 143(1) order and no other discussion is made on the impugned addition of Rs.25,68,730/- in the body of 143(3) order being agitated in the appeal. Accordingly, the Hon'ble CIT(A) has rejected the ground of appeal related to the addition. Aggrieved, with the order of the Hon'ble CIT(A) dated 24.01.2024, the assessee preferred appeal before the Hon'ble ITAТ. During the appellate proceedings, the Hon'ble ITAT accepted the claim of the assessee in respect of deduction u/s 80P of Rs.25,68,730/-, Thus, it is to be noted that, the Hon'ble ITAT has allowed the claim of the assessee without considering the fact that the addition was not made in Printed from counselvise.com 3 M.A. No. 58/PUN/2024, AY 2018-19 the base order against which the assessee has filed the present appeal. In this case, the disallowance of deduction under section 80P of the Act at Rs.25,68,730/- was made under section 143(1) of the Act and such disallowance was never made under section 143(3) of the Act (order dated 15/03/2021). Whereas the present appeal filed by the assessee pertains to proceedings u/s 143(3). The Hon'ble ITAT cannot allow a disallowance or addition that was never made in the order under dispute. \"In view of the above, in order to rectify the omission of the above fact while deciding the matter by the Hon'ble Tribunal in the order dated 20.03.2024, filing of Miscellaneous Application before the Hon'ble ITAT on the issue is recommended.\" 1. In view of the above, it is prayed that the order dated 20.03.2024 рassed by the Hon'ble ITAT \"SMC\" Bench, Pune in ITA No.216/PUN/2024, may kindly be recalled and the appeal of appellant may be decided taking into consideration the facts mentioned above. 2. The Pr. Commissioner of Income Tax - 1, Pune vide letter No Pn/Pr.CIT1/Judl/M.A./2363-SVNSPSL/2024-25 dated 27/09/2024 has authorized the undersigned to file Miscellaneous Application before the Hon'ble ITAT, Pune. 3. The application is submitted online. A copy of the order sought to be rectified/revised and authorization of Pr. Commissioner of Income Tax - 1. Pune is also enclosed herewith.” 3. The Ld. DR at the time of hearing reiterated the above stated contentions made in the Miscellaneous Application and requested to reconsider the issues decided in ITA No.216/PUN/2024 by recalling the Tribunal’s order dated 20.03.2024 in light of the facts mentioned in the present Miscellaneous Application which is reproduced in the preceding paragraph. 4. The Ld. AR submitted that the contention of the Revenue in the said Miscellaneous Application is beyond the scope of Section 254(2) of the Act as there is no error in the impugned order of the Tribunal and the Tribunal has decided the impugned issue on merits by passing a detailed order which need not be interfered. The Ld. AR argued that by way of this Miscellaneous Application the Revenue is seeking review of the Tribunal’s order in the garb of rectification which is not permissible under the law. 5. We have heard both the parties, considered their arguments and carefully perused the Tribunal’s order dated 20.03.2024 in the main appeal being ITA No. 216/PUN/2024 for AY 2018-19. The grievance of the Department is that the Tribunal has allowed the claim of the assessee under section 80P of the Act in the appeal proceedings under section 143(3) of the Act, however, the disallowance of deduction under section 80P was made under section 143(1) of the Act and therefore the Tribunal ought to not have allowed a disallowance or addition that was never made in the order under dispute. In our view, there is not much force in the contention of the Revenue. It is an undisputed fact that Printed from counselvise.com 4 M.A. No. 58/PUN/2024, AY 2018-19 the adjustment was made in the ROI of the assessee pertaining to claim of deduction under section 80P in intimation order passed under section 143(1) of the Act. The Ld. AO took the said adjustment into account during the assessment proceedings and then only completed the assessment under section 143(3) of the Act. In our view, when assessment proceeding under section 143(3) has been completed and the Tribunal has passed a speaking order on merits of the issue in light of the factual and legal context, the contention raised by the Revenue in the present application has no worthwhile meaning. We are therefore of the view that there is no mistake apparent on record in the Tribunal’s order dated 20.03.2024 in ITA No. 216/PUN/2024 calling for rectification of the same. Accordingly, the Miscellaneous Application filed by the Revenue is dismissed. 6. In the result, the Miscellaneous Application No. 58/PUN/2024 arising out of ITA No. 216/PUN/2024 filed by the Revenue is dismissed. Order pronounced in the open court on 06th August, 2025. Sd/- Sd/- (Manish Borad) (Astha Chandra) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ददन ांक / Dated : 06th August, 2025. रदि आदेश की प्रनिनलनप अग्रेनर्ि / Copy of the Order forwarded to : 1. अपील थी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The Pr. CIT concerned. 4. धिभागीय प्रधिधिधि, आयकर अपीलीय अधिकरण, “एक सदस्य मामला” बेंच, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. ग र्ड फ़ इल / Guard File. //सत्य दपत प्रदत// True Copy// आदेश नुस र / BY ORDER, िररष्ठ दनजीसदिि / Sr. Private Secretary आयकरअपीलीयअदधकरण ,पुणे/ ITAT, Pune Printed from counselvise.com "