Sri Kanaka Credit Co-operative Society Limited , Hosadurga V. Income Tax Officer WArd-2 , Chitradurga

ITA 2562/BANG/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 4689 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 11-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIKAS K SURYAVAMSHI
• Keywords: Opportunity of being heard; Non compliance

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, SMC : BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT ITA NO. 2562/BANG/2018 ASSESSMENT YEAR : 2014-15 SRI KANAKA CREDIT CO- OPERATIVE SOCIETY LTD., MAIN ROAD, HOSADURGA-577 527. PAN AAAAK 1889 N VS. THE INCOME TAX OFFICER, WARD 2, CHITRADURGA. APPELLANT RESPONDENT APPELLANT BY : SHRI SANDEEP C, C.A RESPONDENT BY : SHRI VIKAS K SURYAVAMSHI, ADDL.CIT DATE OF HEARING : 04.10.2018 DATE OF PRONOUNCEMENT : .10.2018 O R D E R PER N.V. VASUDEVAN, VICE PRESIDENT THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 12.6.2018 OF THE CIT(APPEALS), DAVANGERE RELATING T O ASSESSMENT YEAR 2014-15. 2. THE ASSESSEE IS A CO-OPERATIVE SOCIETY. THE ASSESS EE CLAIMED DEDUCTION U/S.80P(2)(A)(I) OF THE INCOME TAX ACT, 1 961 (ACT) OF RS.3,41,564/- WHICH WAS INTEREST RECEIVED ON FIXED DEPOSITS. IN THE ORDER OF ASSESSMENT PASSED U/S.143(3) OF THE ACT DA TED 29.11.16, THE AO HELD THAT THE INTEREST INCOME WAS NOT ATTRIBUTAB LE TO THE BUSINESS OF ITA NO. 2562/BANG/2018 PAGE 2 OF 4 PROVIDING CREDIT FACILITIES BY THE ASSESSEE TO ITS MEMBERS AND, THEREFORE, THE DEDUCTION CLAIMED CANNOT BE ALLOWED. 3. AGAINST THE ORDER OF THE AO, THE ASSESSEE PREFER RED APPEAL BEFORE CIT(A). THE APPEAL WAS FIXED FOR HEARING BE FORE CIT(A) ON 30.5.2018 AND ADJOURNED TO 12.6.2018. ON 12.6.2018 , THE ASSESSEE FILED A LETTER SEEKING ADJOURNMENT ON THE GROUND TH AT WRITTEN SUBMISSIONS AND PAPER BOOK HAD TO BE PREPARED AND F ILED. THE REQUEST WAS NOT ACCEPTED BY THE CIT(A). THE CIT(A) OBSERVE D THAT THE ASSESSEE WAS SEEKING TIME AND WAS NOT INTERESTED IN PROSECUTING THE APPEAL AND, THEREFORE, HE DISMISSED THE APPEAL FOR NON-PROSECUTION. 4. AGGRIEVED BY THE AFORESAID ORDER OF CIT(A), THE ASSESSEE HAS PREFERRED THE PRESENT APPEAL BEFORE THE TRIBUNAL. 5. AFTER HEARING THE RIVAL SUBMISSIONS, I AM OF THE VIEW THAT THE ASSESSEE DID NOT HAVE PROPER OPPORTUNITY OF BEING H EARD. THE HEARING ON 12.6.18 WAS THE SECOND HEARING. THERE WAS NO RE PEATED NON COMPLIANCE BY THE ASSESSEE AS STATED BY THE CIT(A). MOREOVER, THE CIT(A) WAS OBLIGED TO DECIDE THE APPEAL ONLY ON MER ITS AND HE CANNOT DISMISS THE APPEAL FOR NON-PROSECUTION. I, THEREFO RE, SET ASIDE THE ORDER OF THE CIT(A) AND REMAND THE ISSUES RAISED IN THE G ROUNDS OF APPEAL BY THE ASSESSEE BEFORE THE CIT(A) FOR CONSIDERATION AF RESH ON MERITS AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSE E. ITA NO. 2562/BANG/2018 PAGE 3 OF 4 6. IN THE RESULT, I ALLOW THE APPEAL OF THE ASSESSE E FOR STATISTICAL PURPOSE. PRONOUNCED IN THE OPEN COURT ON THIS 26 TH DAY OF OCTOBER, 2018. SD/- ( N.V. VASUDEVAN) VICE PRESIDENT BANGALORE, DATED, THE 26 TH OCTOBER, 2018. / VMS / COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE ITA NO. 2562/BANG/2018 PAGE 4 OF 4 1. DATE OF DICTATION 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO SR.P.S . . 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER .. 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S. .. 6. DATE OF UPLOADING THE ORDER ON WEBSITE .. 7. IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO .. 8. DAT E ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. DATE ON WHICH ORDER GOES FOR XEROX & ENDORSEMENT 10. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 11. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER . 12. THE DATE ON WHICH THE FILE GOES TO DISPATCH SEC TION FOR DISPATCH OF THE TRIBUNAL ORDER . 13. DATE OF DESPATCH OF ORDER. ..