MADAKASIRA P A C S, ANANTAPUR V. ITO, WARD-1, HINDUPUR

ITA 2127/HYD/2025

AI Insights

The case involves Madakasira PACS, an assessee, appealing against the orders of the Income Tax Officer and the Learned Commissioner of Income Tax (Appeals), which denied them a deduction under section 80P of the Income Tax Act for the Assessment Year 2016-17. The primary contention was the non-acceptance of their return filed under section 139(4) due to a natural calamity that disrupted normal operations. The Tribunal noted the procedural lapses in the handling of the case by the lower authorities and decided to remand the case for a fresh assessment, allowing the assessee a chance to present their case.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 849717 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Hyderabad
• Assessment Year: 2016-2017
• Appeal Filed On: 01-12-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SACHIN KUMAR
• Assessee Lawyers: SREEMANNARAYANA
• Keywords: Set aside
• Section: 147; 148

Judgement Text

" ITA No 2127 of 2025 Madakasira PACS Page 1 of 5 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ B ‘ Bench, Hyderabad Įी ͪवजय पाल राव, उपाÚ य¢ एवं Įी मंजुनाथ जी, लेखा सदè य क े सम¢ । Before Shri Vijay Pal Rao, Vice-President A N D Shri Manjunatha G. Accountant Member आ.अपी.सं /ITA No.2127/Hyd/2025 (िनधाŊरण वषŊ/Assessment Year: 2016-17) MADAKASIRA PACS Anantapur PAN:AADTM0483A Vs. Income Tax Officer Ward 1 Hindupur (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: Advocate Sreemannarayana Malela राज̾ व Ȫारा/Revenue by: Dr. Sachin Kumar, Sr. AR सुनवाई की तारीख/Date of hearing: 24/03/2026 घोषणा की तारीख/Pronouncement: 24/03/2026 आदेश/ORDER Per Vijay Pal Rao, Vice-President: This appeal by the assessee is directed against the order passed by the Learned Commissioner of Income Tax (Appeals)/ADDL/JCIT(A)-1 PUNE dated 30.09.2025 for the A.Y 2016-17. 2. There is a delay of 1 day in filing the present appeal. The assessee has filed a petition for condonation of delay. Printed from counselvise.com ITA No 2127 of 2025 Madakasira PACS Page 2 of 5 3. We have heard the Ld. DR as well as the learned Counsel for the assessee on the application for condonation of delay. The assessee has explained the cause of delay that the society situated in Madakasira Pacs in Anantapur District which was affected by the severe cyclone storm namely “Ditwah Thupan” and caused heavy rains and high-speed wind disrupted the road transport, power failure and network. Accordingly, the assessee’s staff was not able to travel to the Tax Consultant’s Office for filing the appeal within the limitation. Considering the cause of delay due to natural calamity of severe storm, we condone the delay of one day in filing the present appeal. 4. The assessee has raised the following grounds of appeal: Printed from counselvise.com ITA No 2127 of 2025 Madakasira PACS Page 3 of 5 5. The learned Counsel for the assessee has submitted that the A.O has disallowed the deduction under section 80P of the Act on the total income of the assessee on the ground that the assessee has not filed any return of income. On appeal, the Ld. CIT (A) has dismissed the appeal for non-prosecution when there was no response to the notices issued by the Ld. CIT (A). The learned Counsel for the assessee has submitted that it is a case of filing the return of income under section 139(4) of the Act and therefore, the A.O has committed an error in denying the deduction under section 80P of the Act. He has submitted that once the assessee has filed return of income under section 139(4) of the Act, then the claim of deduction under section 80P should not be denied, Since the A.O as well as the Ld. CIT (A) has passed ex-parte order and the Ld. CIT (A) has not decided the appeal on merits, therefore, the impugned order may be set aside and the matter may be remanded to the record of the A.O for re- consideration of the same after giving an opportunity of hearing to Printed from counselvise.com ITA No 2127 of 2025 Madakasira PACS Page 4 of 5 the assessee. The learned Counsel for the assessee has also submitted that the assessee has raised the validity of notice issued under section 148 as well as the impugned order passed by the A.O for want of jurisdiction and the same may be kept open. 6. On the other hand, the Ld. DR has fairly submitted that the orders of the authorities below are passed ex-parte, therefore, the matter may be remanded to the record of the A.O for reconsideration after giving an opportunity of hearing to the assessee. 7. We have considered the rival submissions as well as carefully perused the orders of the authorities below. The A.O while passing the order under section 147 r.w.s. 144 of the Act has denied the claim of deduction under section 80P of the Act on the ground that the assessee has not filed his return of income within the due date under section 139(1) of the Act. The learned Counsel for the assessee has pointed out that the amendment in section 80AC of the Act does not apply for the A.Y under consideration as the same is applicable w.e.f. A.Y 2018-19. The assessee has relied upon various judgments in support of his contention. Since the assessment order as well as the impugned order of the Ld. CIT (A) are passed ex-parte, therefore, in the facts and circumstances of the case, the impugned order of the Ld. CIT (A) is set aside and the matter is remanded to the record of the A.O for fresh adjudication as per law after giving an opportunity of hearing to the assessee. Before parting with the matter, we also Printed from counselvise.com ITA No 2127 of 2025 Madakasira PACS Page 5 of 5 clarify that the issue raised by the assessee regarding the validity of the notice issued under section 148 of the Act by the jurisdictional A.O and not by the Faceless A.O is kept open. 8. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the Open Court on the conclusion of hearing i.e. on 24th March 2026. Sd/- Sd/- (MANJUNATRHA, G) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE PRESIDENT Hyderabad, dated 24th March 2026. PVV Copy to: S.No Addresses 1 MADAKASIRA P A C S , MADAKASIRA VIL PA, MADAKASIRA M ANANTAPUR DISTRICT, HINDUPUR 515301 AP. 2 Income Tax Officer Ward-1 Hindupur Railway Station Road, Hindupur 515201 3 Pr. CIT - Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order Printed from counselvise.com KAMALA KUMAR ORUGANTI Digitally signed by KAMALA KUMAR ORUGANTI Date: 2026.03.27 17:18:17 +05'30' "