K 2080 P KARIAMPALAYAM PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY, COIMBATORE V. ASSESSING OFFICER, COIMBATORE

ITA 856/CHNY/2024

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 1156 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2024
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 02-07-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 28-03-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MARUTHACHALAMOORTHY
• Keywords: Earning of tax free income; Set aside
• Section: 56; 143(3)

Judgement Text

आयकर अपीलȣय अͬधकरण, बी, Ûयायपीठ,चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय Įी मन ु क ु मार ͬगǐर, ÛयाǓयक सदèय एवं Įी एस.आर. रघ ु नाथा, लेखा सदèय के सम¢ BEFORE HON’BLE SHRI MANU KUMAR GIRI, JM AND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.856/CHNY/2024 िनधाᭅरण वषᭅ/Assessment Year: 2017-18 K 2080 P Kariampalayam Primary Agricultural Cooperative Credit Society, Agri Co-oper Credit Society, Kariyampalayam, Post Annur, Coimbatore 641 653. PAN: AABAK 0996P Vs. The Income Tax Officer, Non Corporate Ward 3(2) Coimbatore (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri. Maruthachalamoorthy, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri. D. Hema Bhupal, IRS, JCIT. सुनवाई कᳱ तारीख/Date of Hearing : 03.07.2024 घोषणा कᳱ तारीख/Date of Pronouncement : 05.07.2024 आदेश /O R D E R PER MANU KUMAR GIRI (Judicial Member) This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi in order No.ITBA/NFAC/S/250/2023-24/1060254308(1) dated - 2 - ITA No.856/Chny/2024 30.01.2024 for assessment year 2017-2018. The assessment was framed by the ITO, Non Corporate Ward 3(2), Coimbatore, for the assessment year 2017-18 u/s.143(3) of the Income Tax Act, 1961 (hereinafter the ‘Act’), vide order dated 24.12.2019. 2. Brief facts of the case are that appellant filed its return of income on 28.03.2018 admitting Nil income. Subsequently, the case was selected for Limited Scrutiny under CASS. Reason for limited scrutiny was i) Expenses incurred for earning exempt income ii) Investments/advances/loans. The AO framed assessment order u/s 143(3) dated 24.12.2019 and added interest income of Rs.1,11,83,161/- from surplus fund invested in Short Term deposits and securities of CDCC Bank & other financial institutions. The AO treated the same as their own sources income u/s 56 of the Income Tax Act for AY 2017- 18. Aggrieved, assessee preferred an appeal before the ld. CIT(A). The assessee failed to appear before the ld. CIT(A). The ld.CIT(A)sent four notices to appellant but assessee failed to appear before him hence, ld.CIT(A) upheld the AO order and dismissed the appeal of the assessee. Aggrieved, by the order of the ld. CIT(A), assessee is in appeal before the Tribunal. 3. We have heard rival contentions and gone through facts and circumstances of the case. Admittedly, assessee did not appear before the ld.CIT(A). The ld. Counsel stated that assessee did not check the emails. Hence there is bonafide reason for non-appearance before ld.CIT(A). We find - 3 - ITA No.856/Chny/2024 that non-appearance before ld.CIT(A) bonafide. Hence, in the interest of justice we set aside this appeal to the file of ld.CIT(A) to do fresh adjudication of appeal in accordance with law. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld.CIT(A) for de novo adjudication after affording adequate opportunity to the assessee. The assessee is directed to substantiate its case forthwith without any fail, failing which Ld. CIT(A) shall be at liberty to proceed with the disposal of the appeal on merits. 4. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 5th day of July, 2024 at Chennai. Sd/- Sd/- एस.आर. रघ ु नाथा (S.R. RAGHUNATHA) लेखा सदèय/ ACCOUNTANT MEMBER (मन ु क ु मार ͬगǐर) (MANU KUMAR GIRI) ÛयाǓयक सदèय / JUDICIAL MEMBER चे᳖ई/Chennai, ᳰदनांक/Dated, the 5 th July, 2024 KV आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथᱮ/Appellant 2. ᮧ᭜यथᱮ/Respondent 3. आयकर आयुᲦ /CIT, Coimbatore 4. िवभागीय ᮧितिनिध/DR 5. गाडᭅ फाईल/GF.