The Judicial Employees CoOp Cr. Society Ltd No.G 2393, Vijayawada V. Income Tax Officer, Ward-2(1), Vijayawada

ITA 268/VIZ/2021

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 0275 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 6 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-07-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Assessment Year: 2019-2020
• Appeal Filed On: 27-12-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rectification of order
• Section: 154; 143(1); 80P; 250; 139(1)

Judgement Text

आयकर अपीऱीयअधिकरण, विशाखापटणम पीठ, विशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री द ु व्ि ू रु आर एऱ रेड्डी, न्याययक सदस्य एिं श्री एस बाऱाक ृ ष्णन, ऱेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अऩीऱ सं./ I.T.A. No.268/Viz/2021 (ननधधारण वषा / Assessment Year :2019-20) The Judicial Employees Cooperative Credit Society Ltd, No. G 2393, Vijayawada. PAN: AACTT 2165 M Vs. The Income Tax Officer, Ward-2(1), Vijayawada. (अऩीऱधथी/ Appellant) (प्रत्यथी/ Respondent) अऩीऱधथी की ओर से/ Appellant by : Sri C. Subrahmanyam, CA प्रत्यधथी की ओर से / Respondent by : Sri ON Hari Prasadarao, Sr. AR स ु नवधई की तधरीख / Date of Hearing : 11/07/2022 घोषणध की तधरीख/Date of Pronouncement : 15/07/2022 O R D E R PER DUVVURU RL REDDY, Judicial Member : This appeal filed by the assessee is against the order of the Ld. CIT(A), National Faceless Appeal Centre, Delhi in DIN & Order No. ITBA/NFAC/S/250/2021-22/1036595927(1), dated 27/10/2021 arising out of order passed U/s. 154 of the Act for the AY 2019-20. 2 2. The assessee has raised the following grounds of appeal: “1. The appellate order U/s. 250 of the Act dated 27/10/2021 for the AY 2019-20 passed by Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi may be erroneous in law and also on f acts of the case. 2. The CIT(A) is not correct in stating no response from the appellant to the notice u/s. 250. 3. For the reasons and other reasons during the course of hearing of the appeal, it is humbly requested that the disallowance of deduction claimed U/s. 80P namely Rs. 14,16,250/- may be allowed and tax payable may be reduced to NIL.” 3. Brief facts of the case are that the assessee is a Registered Cooperative Society under Cooperative Societies Act for carrying on business by providing credit facilities to its members. All the members of the assessee-society are Government Employees who are working in Judicial Department, Krishna District, Andhra Pradesh. The source of income of the assessee is interest income on advances/loans given to its members and claimed deduction U/s. 80P of the Act for the AY 2019-20. The Assessing Officer disallowed the deduction claimed by the assessee U/s. 80P by invoking the provisions of section 80AC of the Act since the assessee did not file its return of income for the AY under consideration before the due date provided U/s. 139(1) of the Act and passed intimation order U/s. 143(1) and subsequently passed rectification order U/s. 154 of the Act, dated 28/12/2020. 3 Aggrieved by the order of the Ld. AO, the assessee filed an appeal before the Ld. CIT(A). On appeal, the Ld. CIT(A), National Faceless Appeal Centre, Delhi passed ex-parte order since there was no compliance to the notices issued U/s. 250 of the Act by the Ld. CIT(A) and dismissed the appeal of the assessee. Aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before us. 4. At the outset, the Ld. AR submitted before us stating that the Ld. CIT (A) has passed ex-parte order without providing proper opportunity to the assessee of being heard. Further, the Ld. AR explaining the reasons for belated filing of its return of income before the due date for the AY under consideration submitted that the assessee being a registered society under Andhra Pradesh Cooperative Societies Act, 1964 gets its regular audit done by the District Cooperative Audit Officer (DCAO), Vijayawada. Due to various reasons and after repeated requests to the Societies Registrar, the audit was conducted by the DCAO in the month of December 2019 and January 2020 and the assessee got received the audited statements on 3/1/2020. Under such circumstances, the assessee could not file its return of income before the due date and it is not a deliberate action. The Ld AR further submitted that in response to the notices issued U/s 250 of the Act, in the first 4 instance the assessee sought for adjournment and in response to second notice, the assessee put all its efforts to file the written submissions but due to technical glitches in the Income Tax Portal the assessee could not upload its written submissions. It was therefore pleaded that the matter may be remitted back to the file of the Ld CIT (A) in order to provide one more opportunity to the assessee of being heard. Ld. DR, on the other hand, vehemently opposed to the submissions of the Ld. AR and argued that sufficient opportunities had been provided to the assessee however, on the given dates of hearing, since there was no compliance to the notices issued by the Ld. CIT (A), the Ld. CIT (A) had no other option but to pass ex-parte order based on the materials available on record. Hence, it was pleaded that the order passed by the Ld. CIT(A) does not call for any interference. 5. We have heard the rival submissions and carefully perused the materials on record. On examining the facts of the case, We find merit in the submissions of the Ld. AR. It is apparent from the order of the Ld. CIT (A), that the Ld. CIT (A) had issued notices U/s. 250 on various occasions. However, considering the non-compliance from the assessee’s side, the assessee the CIT(A) was left with no other option except to adjudicate the appeal ex-parte based on the material available on record. In this situation, we find much strength in the arguments advanced by 5 the ld. AR with regard to non-compliance of the notices issued U/s. 250 of the Act as well as the reasons adduced for belated filing of the returns. Therefore, considering the prayer of the Ld. AR, in the interest of justice, following the principles of natural justice, we hereby remit the matter back to the file of Ld. CIT (A) in order to consider the appeal afresh on merits by providing one more opportunity to the assessee of being heard. At the same breath, we also hereby caution the assessee to promptly co- operate before the Ld. CIT (A) in the proceedings failing which the Ld. CIT (A) shall be at liberty to pass appropriate order in accordance with law and merits based on the materials on the record. It is ordered accordingly. 6. In the result, appeal filed by the assessee is allowed for statistical purposes as indicated hereinabove. Pronounced in the open Court on the 15 th July, 2022. Sd/- Sd/- (एस बाऱाक ृ ष्णन) (द ु व्ि ू रु आर.एऱ रेड्डी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) ऱेखा सदस्य/ACCOUNTANT MEMBER न्याययकसदस्य/JUDICIAL MEMBER Dated : 15.07.2022 OKK - SPS 6 आदेश की प्रतिलिपि अग्रेपिि/Copy of the order forwarded to:- 1. ननधधाररती/ The Assessee – The Judicial Employees Cooperative Credit Society Limited No-G 2393, 1 st Floor, Civil Courts Compound, Gopalreddy Road, Governorpet, Vijayawada, Andhra Pradesh – 520002. 2. रधजस्व/The Revenue – Income Tax Officer, Ward-2(1), CR Buildings, 1 st Floor Annex, MG Road, Vijayawada, Andhra Pradesh – 520002. 3. The Principal Commissioner of Income Tax, 4. आयकर आय ु क्त (अऩीऱ)/ The Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. 5. ववभधगीय प्रनतननधध, आयकर अऩीऱीय अधधकरण, ववशधखधऩटणम/ DR, ITAT, Visakhapatnam 6. गधर्ा फ़धईऱ / Guard file आदेशधन ु सधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam