Jalna Taluka Zilha Parisha Shikshak Sahakari Pat Sanstha Maryadit, Jalna V. Income-Tax Officer, Ward -3, , Jalna

ITA 729/PUN/2022

AI Insights

The case involves Jalna Taluka Zilha Parishad Shikshak Sahakari Pat Sanstha Maryadit, a cooperative society, which appealed against the order of the National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2017-18. The primary issue was the denial of deduction under section 80P of the Income Tax Act by the AO, who claimed that the society was not adhering to the principle of mutuality as it dealt with the general public and not just its members. The NFAC upheld the AO's decision, leading to the appeal in the ITAT. The ITAT noted procedural lapses in the assessment process and remanded the case back to the AO for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132842 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 26-02-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 03-10-2022
• Other Referred Cases: The Citizen Co-operative Society Limited vs. Civil Appeal No. 10245 of 2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80P

Judgement Text

आयकर अपीलीय अधिकरण “ए” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.729/PUN/2022 धििाारण वर्ा / Assessment Year : 2017-18 Jalna Taluka Zilha Parishad Shikshak Sahakari Pat Sanstha Maryadit, Rohila Galli, Katcheri Road, Jalna – 431203 PAN : AACAJ2795A .......अपीलार्थी / Appellant बिाम / V/s. The Income Tax Officer, Ward – 3, Jalna ......प्रत्यर्थी / Respondent Assessee by : Shri Kishor B. Phadke Revenue by : Shri Ramnath P. Murkunde सुनवाई की तारीख / Date of Hearing : 27-02-2023 घोषणा की तारीख / Date of Pronouncement : 28-02-2023 आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM : This appeal by the assessee against the order dated 05-08-2022 passed by the National Faceless Appeal Centre (“NFAC”), Delhi for assessment year 2017-18. 2. The assessee raised six grounds of appeal amongst which the only issue emanates for our consideration is as to whether the CIT(A), NFAC, Delhi justified in confirming the order of AO ex-parte of the assessee. 2 ITA No.729/PUN/2022, A.Y. 2017-18 3. We note that the assessee is a Co-operative Society and claimed deduction u/s. 80P of the Act. According to the AO, the assessee is a credit Co-operative Society engaged in providing credit facilities to its members and receiving deposits from its members. The said members are the primary and secondary teachers working with the schools run by the Zilla Parishad Jalna which is evident from para 4 of the assessment order. Further, we note that, on an examination of record, the AO opined that the assessee grossly violated the provisions of section 80P(2)(a)(i) of the Act as was found not only dealing with its members but also with general public. According to the AO, there is no principle of mutuality as held by the Hon’ble Supreme Court in the case of The Citizen Co-operative Society Limited vide Civil Appeal No. 10245 of 2017. Having holding so, the AO denied the deduction u/s. 80P of the Act and added claimed amount to the total income of the assessee. Having aggrieved by the order of AO, the assessee preferred an appeal before the NFAC, Delhi. 4. On perusal of page 2 of the impugned order, we note that NFAC, Delhi issued four notices intimating the date to file reply, but however, no response was filed by the assessee before the NFAC, Delhi in support of its grounds. The ld. AR, at the outset, prayed to remand the matter to the file of AO for its fresh consideration as the AO itself completed assessment u/s. 144 of the Act and also there was no representation before the CIT(A) in the First Appellate proceedings. The ld. DR did not report any objection in remanding the matter to the file of AO. As discussed by us above, we note that the AO completed the assessment u/s. 144 of the Act and no opportunity for the assessee before the NFAC, Delhi which is evident from para 2 of the impugned order. Taking into facts and circumstances of the case and in the interest of justice, we deem it proper to remand the matter 3 ITA No.729/PUN/2022, A.Y. 2017-18 to the file of AO for its fresh verification. The assessee is liberty to file evidence, if any, in support of its claim. Thus, the grounds raised by the assessee are allowed for statistical purposes. 5. In the result, the appeal of assessee is allowed for statistical purposes. Order pronounced in the open court on 28 th February, 2023. Sd/- Sd/- (Inturi Rama Rao) (S.S. Viswanethra Ravi) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; दिनाांक / Dated : 28 th February, 2023. रदव आदेश की प्रधिधलधप अग्रेधर्ि / Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The concerned CIT, Pune. 4. दवभागीय प्रदतदनदि, आयकर अपीलीय अदिकरण, “ए” बेंच, पुणे / DR, ITAT, “A” Bench, Pune. 5. गार्ड फ़ाइल / Guard File. //सत्यादपत प्रदत// True Copy// आिेशानुसार / BY ORDER, वररष्ठ दनजी सदचव / Sr. Private Secretary आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune