Shri Lokeshwar Co-operative Credit Society Niyamit, Lokapur V. Income Tax Officer, Ward - 1 & TPS, Bagalkot

ITA 76/PAN/2023

AI Insights

The case involves Shri Lokeshwar Co-operative Credit Society Niyamit, which appealed against the order of the National Faceless Appeal Centre (NFAC) that dismissed their appeal due to an 83-day delay in filing. The assessee, a co-operative society, had initially filed a return declaring NIL income after claiming a deduction under section 80P(2)(a)(i) of the Income Tax Act. The Assessing Officer disallowed the exemption of interest income under section 80P(4), leading to the society's appeal. The NFAC dismissed the appeal on procedural grounds without examining the merits. The Income Tax Appellate Tribunal (ITAT) found this dismissal to be in violation of the principles of natural justice and remanded the case back to the NFAC for a decision on the merits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136891 (ITAT-PANAJI)
• Duration Of Justice: 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 17-04-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Application of stay
• Section: 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH :: PANAJI BEFORE SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER & SHRI G.D. PADMAHSHALI, ACCOUNTANT MEMBER (Through virtual hearing) S.A.No. 05/PAN/2023 And ITA No.76/PAN/2023 (A.Y. 2013-14) Shri Lokeshwar Co-operative Credit Society Niyamit Lokapur, Tq. Mudhol, Dist. Bagalkot PAN: AAALS 2253 H Vs ITO, Ward-1 & TPS, Bagalkot. Appellant Respondent Assessee by : Shri Saidappa Gadadi, CA Revenue by : Shri N. Shrikanth, DR Date of hearing : 14/08/2023 Date of pronouncement : 21/08/2023 O R D E R Per PARTHA SARATHI CHAUDHURY, JM: The stay application and the appeal preferred by the assessee emanates from the order of National Faceless Appeal Centre [NFAC], Delhi, dated 23.02.2023 for A.Y.2013-14 as per the grounds of appeal on record. 2. At the time of hearing, ld.AR submits that he wants to withdraw the stay application. Ld.DR has not raised any objection. Therefore, this stay application filed by the assessee is dismissed as withdrawn. 3. Now we shall adjudicate the appeal filed by the assessee. SA No. 05/PAN/2023 & ITA No.76/PAN/2023 Shri Lokeshwar Co-op. Credit Society Niyamit 2 4. Brief facts of the case are that assessee is a co-operative society, filed its return of income declaring NIL income after claiming deduction u/sec. 80P(2)(a)(i). The Assessing Officer held that assessee cannot claim exemption of interest income u/sec. 80P(4) and disallowing the same, order was passed u/sec. 143(3). Aggrieved by the action of the AO, the assessee filed an application u/sec. 154 which was also rejected. Aggrieved, assessee filed the appeal before the NFAC with a delay of 83 days. The NFAC had dismissed the appeal of the assessee on the ground of limitation i.e. 83 days delay in filing the appeal. Further, aggrieved, the assessee is in appeal before this Tribunal. 5. The NFAC while adjudicating the appeal has observed that assessee had not been able to prove its reasons for 83 days delay with documentary evidence. It was not just and proper to raise the issue after a gap of more than 83 days and by placing reliance on various judicial precedents, on the ground of limitation, the NFAC dismissed the appeal in limine. The process of judicial adjudication requires Quasi-Judicial authority to adjudicate the case on merits and come out with a speaking order. Moreover, keeping in mind the principles of natural justice and the very fact, the Income Tax Act is welfare legislation; we are of the considered view that one final opportunity should be given to the assessee to represent its case on merits. Therefore, the assessee is directed to present itself through its authorised representative before the NFAC immediately on receipt of SA No. 05/PAN/2023 & ITA No.76/PAN/2023 Shri Lokeshwar Co-op. Credit Society Niyamit 3 this order along with relevant/necessary documents to present its case on merits before the NFAC and it shall adjudicate the same by passing a speaking order while complying with the principles of natural justice. Issuance of any further notice to assessee is dispensed with. In view of the aforesaid directions, we set aside the order of the NFAC and remand the matter back to its file. 6. In the result, stay application of the assessee is dismissed as withdrawn and that the appeal stands allowed for statistical purposes. Order pronounced in open Court on 21 st August, 2023. Sd/- Sd/- (G.D. PADMAHSHALI) (PARTHA SARATHI CHAUDHURY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 21 st August, 2023 vr/- Copy to : 1. The Appellant. 2. The Respondent. 3. The Pr. CIT concerned. 5. The DR, ITAT, Panaji Bench, Panaji. 6. Guard File. By Order // TRUE COPY // Senior Private Secretary ITAT, Pune.