LIMBASI SEVA SAHAKARI MANDLI LIMITED,KHEDA V. INCOME TAX OFFICER WARD 3 NADIAD, NADIAD

ITA 1676/AHD/2025

AI Insights

The case involves Limbasi Seva Sahakari Mandali Limited, the Appellant, contesting an ex-parte appellate order by the Addl. Commissioner of Income Tax/JCIT (Appeals)-13, Mumbai, which arose from an assessment order under section 143(3) of the Income Tax Act, 1961 for the Assessment Year 2015-16. The primary contention was regarding the disallowance of a deduction under section 80P(2) amounting to Rs. 31,15,639, which the lower authorities denied citing section 80P(4). The Appellant argued that it is a registered Co-operative society not holding any banking license, thus eligible for the deduction under section 80P(2), and that the provisions of section 80P(4) should not apply. The Tribunal noted the failure of the lower authorities to consider the merits of the case and the Assessee's request for adjournment due to the unavailability of their CA, leading to an ex-parte decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 784626 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 30-08-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH Before: DR. BRR Kumar, Vice President And Shri T. R. Senthil Kumar, Judicial Member Limbasi Seva Sahakari Mandali Limited Station Road Limbasi TA Matar, Kheda, Gujarat-387520 PAN: AAAAT8858Q (Appellant) Vs Income Tax Officer Ward-3, Nadiad (Respondent) Assessee Represented: None Revenue Represented: Shri Rohit Aasudani, Sr. D.R. Date of hearing : 11-11-2025 Date of pronouncement : 13-11-2025 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Assessee as against the exparte appellate order dated 02.06.2025 passed by the Addl. Commissioner of Income Tax/JCIT (Appeals)-13, Mumbai arising out of the assessment order passed under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2015-16. ITA No. 1676/Ahd/2025 Assessment Year 2015-16 Printed from counselvise.com I.T.A No. 1676/Ahd/2025 A.Y. 2015-16 Page No Limbasi Seva Sahakari Mandli Ltd. vs. ITO 2 2. The Grounds of Appeal raised by the Assessee are as follows: (1) The NFAC has dismissed the appeal without considering the request of the Assessee for adjournment as CA was out of India and not provided sufficient opportunity to submit required documents to substantiate the facts of the case. (2)The NFAC did not consider the appeal in merit. The NFAC has erred in law and or on facts in holding that the deduction u/s 80P(2) of Rs. 31,15,639 is not allowable as per the provisions of Section 80P(4) of the Act. The Assessment Order itself contains the facts of the case that the Assessee is a registered Co-operative society not having any banking licence and eligible for deduction u/s 80P(2) of the Act and provisions of section 80P(4) is not applicable to the Assessee. However, the Lower Authorities have ignored the fact and even disregard the CBDT circular in the matter and applied the provisions of section 80P(4) to disallow deduction claimed of Rs. 31,15,639 u/s 80P(2) of the Act, which is wholly illegal, unlawful and against the principal of natural justice. (3)The NFAC order state that case has decided on the merits while adjudicating the same. However, all the ground has been dismissed ex- party without considering the facts and mechanically relied on the Order of the ITO without applying brain in the case. (4)The Assessee craves the leave of this court to add, delete or alter any ground of appeal where it is required for just and equitable ground. 3. On perusal of record, it is seen from the appellate order, the assessee was given opportunity between 19-03-2020 to 23-05- 2025. However the assessee failed to file written submission before the Ld. Addl.CIT(A) thereby the appeal was dismissed exparte. Ld. Counsel submitted that the assessee is willing to produce all relevant details and materials before Ld. Addl.CIT(A) to pass order on merits provided one more opportunity of hearing is given to the assessee. 4. Recording the same and in the interest of Principle of Natural Justice, we set-aside the orders passed by the lower authorities and restore the matter back to the file of Jurisdictional Assessing Printed from counselvise.com I.T.A No. 1676/Ahd/2025 A.Y. 2015-16 Page No Limbasi Seva Sahakari Mandli Ltd. vs. ITO 3 Officer for de novo adjudication. The assessee shall submit all relevant documents explanations before the JAO and comply with the notices without seeking any unnecessary adjournments. 5. In the result, the appeal filed by the Assessee is allowed for statistical purpose. Order pronounced in the open court on 13-11-2025 Sd/- Sd/- (DR. BRR KUMAR) (T.R. SENTHIL KUMAR) VICE PRESIDENT JUDICIAL MEMBER Ahmedabad : Dated 13/11/2025 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद Printed from counselvise.com "