POOVACHAL RURAL HOUSING SOCIETY LTD,THIRUVANANTHAPURAM V. ITO, WARD-2(1), THIRUVANANTHAPURAM

ITA 617/COCH/2024

AI Insights

The case involves Poovachal Rural Housing Society Ltd., a cooperative society, which did not initially file a return of income for the Assessment Years 2014-15 and 2015-16. The AO, based on information about a substantial cash deposit made by the society, issued a notice under section 148 of the Income Tax Act, 1961, suspecting income escape. The society responded by filing a return declaring nil income after deductions under section 80P. The AO then made a best judgment assessment, determining the total income to be the amount of the cash deposit. The CIT(A) initially set aside this assessment for a fresh assessment, but the AO later amended the assessment to levy tax under section 115BBE, which was confirmed by the CIT(A). The Tribunal found merit in the assessee's request for a de novo adjudication following the setting aside of the original assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 38575 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJIT KUMAR DAS
• Assessee Lawyers: PATHMANATHAN
• Keywords: Set aside
• Section: 148; 144; 154; 139(1); 80P

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI KESHAV DUBEY, JM ITA Nos. 616 & 617/Coch/2024 Assessment Years: 2014-15 & 2015-16 Poovachal Rural Housing Society Ltd. .......... Appellant Nedumangad, Thiruvananthapuram 695572 [PAN: AAMFP8424H] vs. The Income Tax Officer .......... Respondent Ward - 2(1), Thiruvananthapuram Appellant by: Shri Pathmanathan, Advocate Respondent by: Shri Sanjit Kumar Das, CIT-DR Date of Hearing: 20.02.2025 Date of Pronouncement: 18.03.2025 O R D E R Per: Inturi Rama Rao, AM These appeals filed by the assessee are directed against the orders of the National Faceless Appeal Centre, Delhi [CIT(A)], dated 12.11.2024 for Assessment Years (AYs) 2014-15 & 2015-16. 2. Since identical issues are involved in these appeals, they are heard together and disposed of vide this common order. For the sake of convenience and clarity the facts relevant to the appeal bearing ITA No. 616/Coch/2024 for AY 2014-15 are stated herein. 2 ITA Nos. 616 & 617/Coch/2024 Poovachal Rural Housing Society Ltd. 3. Brief facts of the case are that the appellant is a co-operative society registered under the Kerala State Co-operative Societies Act, 1969. The return of income under the provisions of section 139(1) of the Income Tax Act, 1961 (the Act) was not filed for AY 2014-15. However, based on the information that the appellant made a cash deposit to the tune of Rs. 6,62,15,000/- with Syndicate Bank, Kattakkada Branch, the AO formed an opinion that income escaped assessment to tax. Accordingly a notice u/s. 148 of the Act was issued on 26.03.2021. In response to the notice u/s. 148, the appellant filed return of income disclosing Nil income after claiming deduction u/s. 80P of Rs. 35,27,567/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-2(1), Thiruvananthapuram (hereinafter called \"the AO\") by making a best judgement assessment u/s. 144 r.w.s. 147 of the Act on 21.03.2022 at a total income of Rs. 6,62,15,000/-. 4. Being aggrieved, an appeal was filed before the CIT(A), who vide impugned order dated 12.11.2024 set aside the assessment order to the file of the AO for fresh assessment. During the pendency of the appeal before the CIT(A), the AO issued show cause notice u/s. 154 of the Act proposing to amend the assessment order to levy tax under the provisions of section 115BBE of the Act as against normal rate of tax as the assessee had failed to respond to the notice u/s. 154 of the Act. In the circumstances the AO proceeded with passing order u/s. 154 dated 20.09.2022 levying tax 3 ITA Nos. 616 & 617/Coch/2024 Poovachal Rural Housing Society Ltd. on the assessed income under the provisions of section 115BBE of the Act. 5. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO. 6. Being aggrieved, the appellant is in appeal before us in the present appeal. 7. It is submitted that since the original assessment was set aside by the CIT(A) to the file of the AO for fresh adjudication, the present appeal may also be set aside to the file of AO for de novo adjudication. 8. On the other hand, the CIT-DR has no serious objection for remanding the matter to the file of the AO. The appeals filed by the assessee are remand back to the AO for de novo adjudication in accordance with law after affording reasonable opportunity of hearing to the assessee. 9. In the result, appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open court on 18th March, 2025. Sd/- Sd/- (KESHAV DUBEY) JUDICIAL MEMBER (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 18th March, 2025 n.p. 4 ITA Nos. 616 & 617/Coch/2024 Poovachal Rural Housing Society Ltd. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin "