KANARA SARASWAT CREDIT SOUHARD SAHAKARI NIYAMIT,KUMTA V. INCOME TAX OFFICER, WARD - 2, KARWAR

ITA 120/PAN/2024

AI Insights

The case involves three appeals by Kanara Saraswat Credit Souhard Sahakari Niyamit against the orders of the National Faceless Appeal Centre (NFAC), Delhi, concerning the denial of deductions under section 80P(2)(a)(i) and 80P(2)(d) of the Income Tax Act for the assessment years 2014-15, 2017-18, and 2018-19. The Assessing Officer had initially denied these claims, leading to an appeal before the CIT(A), which was dismissed due to non-compliance by the assessee. The Tribunal found that the CIT(A) had not adequately considered the assessee's non-compliance and decided to provide another opportunity for the assessee to present its case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 37872 (ITAT-PANAJI)
• Duration Of Justice: 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Next Hearing Date: 29-10-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 09-05-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Principle of natural justice; Reason to believe
• Section: 147; 119; 250; 80P

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI G D PADMAHSHALI ACCOUNTANT MEMBER IT A. Nos. 118, 119 & 120/PAN/2024 (A-Y.2014-15, 2017-18 & 2018-19) Kanara Saraswat Credit SouhardSahakari Niyamit, B 215A Shrinivas Car Street Kumta, Vs | ITO-Ward-2, 1 st floor,Santeri Krupa, Kalga Road, Habbuwada,Karwar, Uttara Kannada- Kumta-581343, 581301Karnataka. Karnataka. PAN/GIR No. AABAK4326K (sittenretiva ppellant ess | (al/Respondent) Ms.Rijula Uniyal.Sr.DR [Gat A awake ofiearing [39.10.2024 30.10.2024 ORDER PER BENCH: These three appeals are filed by the assessee against the separate orders of the National Faceless Appeal Centre (NFAC), Delhi / (CIT(A) passed u/sec 250 of the Act. 2. Since issues involved in these appeals are common and identical, hence they are clubbed, heard and a consolidated order is passed. For the sake of convenience, we shall take up ITA No.118/PAN/2024, A.Y 2014-15 as lead case and facts narrated. The assessee has raised the 2 ITA. No. 118,119 & 120/PAN/2024 Kanara saraswat Credit Souhard Sahakan Niyamit.Kumta grounds of appeal challenging the ex-parte order of the CIT(A) on the denial of claim under section 80P(2)(a)(i) & deduction under section 80P(2)(d) of the Act. 3.The brief facts of the case are that, the assessee is a cooperative society and has filed the return of income for the A.Y 2014-15 on 28.09.2014 disclosing a total income of Rs. Nil after claiming deduction u/sec 80P(2)(d) of the Act of Rs.28,65,010/-.Subsequently the Assessing Officer (A.O) has received information that the assessee society is not eligible for claim of deduction under section 80P of the Act and has reason to believe that the income has escaped assessement and issued notice u/secl48 of the Act .Further notice u/sec142(1) of the Act is issued calling for details in respect of claims and the information supporting the return of income filed.The.assessee has filed the details vide letter dated 10-03-2021. Whereas the A.O was not satisfied with the explanations and dealt on the provisions and judicial decisions and denied the claim of deduction u/sec80P2(d) of the act of Rs.26,65.010/- and assessed the total income of Rs 26,65,010/- and passed the order u/sec 147 r.w.s144 of the Act dated 27.09.2021. 4. Aggrieved by the order, the assessee has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the AO and has issued notices of hearing and since there was no compliance by the assessee to notices. Therefore, the _ _.. ITA. No.. 118,119 & 120/PAN/2024 Kanara saraswat Credit Souhard Sahakari Niyamit.Kumta CIT(A) considering the information on record has confirmed the action of the A.O and dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal. 5.At the time of hearing, none appeared on behalf of the assessee. The Ld. DR supported the order of the CIT(A). 6.We heard the Ld.DR submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The Ld. CIT(A) has issued the notices of hearing but there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assessee has raised grounds of appeal challenging the disallowance by the A.O and there could be various reasons for non appearance which cannot’. be overruled. Therefore, considering the principles of natural justice shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate ITA, No. 118,119 & 120/PAN/2024 Kanara saraswat Credit Souhard Sahakari Niyamit.Kumta afresh on merits and the assessee should be provided adequate Opportunity of hearing and shall cooperate in submitting the information for early disposal of appeal. And, we allow the grounds of appeal of the assessee for Statistical purposes. 7. In the result, the appeal filed by assessee is allowed for Statistical purposes. ITA No.119 & 120/PAN/2024 A.Ys. 2017-18 & 2018-19. 8.As the facts and circumstances in these two appeals are identical to ITA No 118/PAN/2024 for the A.Y 2014-15 (except variance in figures) and the decision rendered in above paragraph 6&7 would apply mutatis mutandis for these appeals also. Accordingly, we allow the grounds of appeal of the assesse for statistical purposes. 9.In the result, the three appeals filed by the assessee are allowed for statistical purpose. Order pronounced in the open court on 30.10.2024. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 30/10/2024 - ITA. No. 1 18,119& 120/PAN/ 2024 anara saraswat Credit Souhard Sahakari Niyamit.Kumta Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT S. DR, ITAT, Mumbai 6. Guard file. //Trae Copy/ / BY ORDER, (Asstt. Registrar) ITAT, Panaji Draft dictated on 29.10.2024 Draft placed before author 29.10..2024 Draft proposed & placed oe ee | the second member 4. Draft discussed/approved aia Second Member. el Approved Draft comes to the me PS/PS a File sent to the Bench Clerk PAT tie BE cey Se 7 on which file goes to the aE Date on which file goes to the Head Clerk. 10. | Date of dispatch of Order. Pie oe 11. | Dictation Pad is enclosed fie Rees teed i ie i "