Pradeshik Manorungnalaya Karmachary Sahakari Patha Sanstha, Pune V. Income Tax Officer, Ward-7(2), Pune, Pune

ITA 573/PUN/2023

AI Insights

The case involves Pradeshik Manorungnalaya Karmachary Sahakari Patha Sanstha, a cooperative society, which appealed against the order of the NFAC that dismissed their appeal for non-prosecution. The society had initially filed a return declaring nil income for the assessment year 2016-17, claiming exemption under section 80P of the Income Tax Act, 1961. The Income Tax Officer denied this exemption due to non-compliance with notices under section 142(1). The Tribunal found that the NFAC erred in not adjudicating the appeal on its merits and thus remanded the case for a decision on the substantive issues raised.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137645 (ITAT-PUNE)
• Duration Of Justice: 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-05-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 25-05-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 10-05-2023
• Laws Referred To: Income Tax Act, 1961, Maharashtra Co-operative Societies Act, 1960
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 144; 142(1); 80P

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.573/PUN/2023 िनधाᭅरण वषᭅ / Assessment Year : 2016-17 Pradeshik Manorungnalaya Karmachary Sahakari Patha Sanstha, Mental Hospital Compound, Jail Road, Yerwada, Pune- 411006. PAN : AAABP0581H Vs. ITO, Ward-7(2), Pune. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the order of the National Faceless Appeal Centre, Delhi [‘NFAC’] dated 15.03.2023 for the assessment year 2016-17. 2. Briefly, the facts of the case are that the appellant is a cooperative society duly incorporated under the provisions of the Maharashtra Co-operative Societies Act, 1960. It is engaged in the business of accepting deposits and providing credits facilities to its Assessee by : Shri Digambar Surwase Revenue by : Shri Piyush Kumar Singh Yadav Date of hearing : 26.05.2023 Date of pronouncement : 29.05.2023 ITA No.573/PUN/2023 2 members. The Return of Income for the assessment year 2016-17 was filed on 20.08.2016 declaring total income of Rs.Nil after claiming exemption u/s 80P of the Income Tax Act, 1961 (‘the Act’). Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-7(2), Pune (‘the Assessing Officer’) vide order dated 10.12.2018 passed u/s 144 of the Act denying the exemption u/s 80P, as the assessee had failed to comply with the notices u/s 142(1) of the Act. 3. Being aggrieved, an appeal was filed before the NFAC, who vide impugned order dismissed the appeal in liminie for non- prosecution without dealing with the merits of the case. 4. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. 5. I heard the rival submissions and perused the material on record. On perusal of the impugned order, it would be clear that the NFAC had dismissed the appeal in limine for non-prosecution. Now, the law is settled to the extent that the Commissioner of Income Tax (Appeals) is bound to dispose of the appeal on merits even in the case of ex-parte orders. The settled positions of law ITA No.573/PUN/2023 3 mandates the Commissioner of Income Tax (Appeals) to dispose of the appeal by adjudicating the issue raised in appeal on merits. In the circumstances, I am of the considered opinion that the NFAC should go into to the merits of the issue in appeal and dispose the appeal. Since the NFAC had not disposed of the matter on merits, I remand the matter to the file of the NFAC for fresh adjudication on merits based on the material available on record. 6. In the result, the appeal filed by the assessee stands partly allowed. Order pronounced on this 29 th day of May, 2023. Sd/- Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 29 th May, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “SMC” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.