The Bhatia Doodh Utpadak Sahkari Mandali Limited, Banaskantha V. The ACIT, Circle-Palanpur, Palanpur

ITA 316/AHD/2022

AI Insights

The case involves The Bhatia Doodh Utpadak Sahkari Mandali Ltd., a cooperative society engaged in milk and allied activities, which appealed against the order of the CIT(A), National Faceless Appeal Centre, Delhi. The appeal was initially dismissed by the CIT(A) due to a delay of 128 days in filing, attributed to the inexperience of a new tax consultant. The ITAT, upon hearing, condoned the delay based on the affidavits provided by the tax consultant and the chairman of the society, and remanded the case back to the CIT(A) to decide on the merits of the case.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299967 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 01-01-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 16-08-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 80P; 22; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I .T .A . No .3 16 /A h d / 20 22 ( A s se ss m e nt Y e a r : 20 16- 17 ) The B h a ti a D o od h U t pad ak Sa h ka ri M an d a li Lt d . B h ati b , B ha ti b D h a n er a Gu j ar a t -3 85 3 1 0 V s . A C I T C ir cl e Pa la np u r , Pa l an p u r , B an as ka n tha , G uj ar a t [P AN N o.A A AA T2 1 7 9E] (Appellant) .. (Respondent) Appellant by : Shri Mehul Thakkar, A.R. Respondent by: Shri Atul Pandey, Sr. D.R. D a t e of H ea r i ng 02.01.2023 D a t e of P r o no u n ce me nt 06.01.2023 O R D E R The appeal filed by the assessee is against the order passed by the Ld. CIT(Appeals), National Faceless Appeal Centre (in short “NFAC”), Delhi on 13.06.2022 for A.Y. 2016-17. 2. The grounds of appeal raised by the assessee are as under: “1. The Ld. A.O. has erred in treating following incomes under the head “Income from Other sources” as against the claim of the appellant that below mentioned incomes are operational incomes and liable to be assessed under the head “Profits and gains from business” a. Baltan Income Rs. 5,03,086/- b. Dividend Income Rs. 1,58,584/- c. Interest Income Rs. 4,73,572/- d. Rasikaran Income Rs. 9,100/- e. Travelling Income Rs. 11,400/- 2. The Ld. A.O. has erred in not granting deduction u/s 80P of the IT Act, 1961 in respect of above referred income. 3. The Ld. CIT(A) erred in dismissing the appeal on technical grounds that there is no explanation for the delay nor there any request for condonation of such delay. The Ld. CIT(A) ought to have pointed out delay before dismissal and ought to have heard the matter on merits. ITA No. 316/Ahd/2022 The Bhatia Doodh Utpadak Sahkari Mandali Ltd. vs. ACIT Asst.Year–2016-17 - 2 - 4. The appellant craves leave to add, alter or delete any ground either before or in the course of hearing of the appeal.” 3. The assessee is a Cooperative Society engaged in the business of selling milk and allied activities. The assessee filed return of income on 09.10.2016 declaring total income of Rs. NIL and claim deduction of Rs. 48,68,172/- under Section 80P (2)(d) of the Act. The Assessing Officer made addition of Rs. 11,55,742/- in respect of dividend received from banking activities through Dena Bank. 4. Being aggrieved by the assessment order the assessee filed appeal before the CIT(A). The CIT(A) dismiss the appeal of the assessee. 5. The Ld. A.R. submitted that the appeal before the CIT(A) was dismissed on the ground that there was a delay of 128 days and requested that the assessee was not able to file the appeal within time as the tax consultant was a new professional and for that the affidavit of the said tax consultant is filed before us alongwith the affidavit of Chairman of the assessee society. The Ld. A.R. requested that the delay should be condoned and the matter may be decided on merit by the CIT(A). 6. The Ld. D.R. relied upon the order the Assessing Officer and the order of the CIT(A). 7. Heard both the parties and perused all the relevant material available on record. There is a delay of 128 days which are properly explained by the assessee alongwith the affidavit filed by the then tax consultant. Therefore, the delay in filing the appeal before the CIT(A) is condoned and the issues ITA No. 316/Ahd/2022 The Bhatia Doodh Utpadak Sahkari Mandali Ltd. vs. ACIT Asst.Year–2016-17 - 3 - on merit contested before the CIT(A) are remanded back to the file of the CIT(A) for adjudicating the same on merit. Needless to say, the assessee be given opportunity of hearing by following principle of natural justice. 8. In the result, the appeal of the assessee is partly allowed for statistical purposes. This Order pronounced in Open Court on 06/01/2023 Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad; Dated 06/01/2023 TANMAY, Sr. PS TRUE COPY आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त(अपील) / The CIT(A)- 5. वभागीय त न ध, आयकर अपील!य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड' फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation 03.01.2023 2. Date on which the type draft is placed before the Dictating Member 03.01.2023 3. Other Member..................... 4. Date on which the approved draft comes to the Sr.P.S./P.S .01.2023 5. Date on which the fair order is placed before the Dictating Member for pronouncement .01.2023 6. Date on which the fair order comes back to the Sr.P.S./P.S 06.01.2023 7. Date on which the file goes to the Bench Clerk 06.01.2023 8. Date on which the file goes to the Head Clerk.......................................... 9. The date on which the file goes to the Assistant Registrar for signature on the order.......................... 10. Date of Despatch of the Order..........................................