PUNCHA SAMABAY KRISHI UNNAYAN SAMITY LIMITED,BANKURA V. ACIT, WARD 3(1), , BANKURA

ITA 661/KOL/2025

AI Insights

The case involves Puncha Samabay Krishi Unnayan Samity Limited, which appealed against the order of the National Faceless Appeal Centre (NFAC), Delhi, concerning the assessment year 2021-22. The primary issues in the appeal included disallowances made under section 80P of the Income Tax Act, 1961, and other expenses and depreciation claims. The assessee had not responded to notices during the assessment and appellate proceedings, leading to ex parte decisions against them. The Tribunal noted the lack of representation and non-compliance from the assessee but decided to remand the case for a fresh hearing to ensure justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 668825 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANAT KUMAR RAHA; S. B. CHAKRABORTY
• Keywords: Set aside; Opportunity of being heard; Depreciation; Principle of natural justice
• Section: 143(3); 142(1)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH KOLKATA BEFORE SHRI DUVVURU RL REDDY, VICE PRESIDENT AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER ITA No.661/KOL/2025 Assessment Year: 2021-22 Puncha Samabay Krishi Unnayan Samity Limited Puncha Puncha, Teleberia B.O. Teliberia, bankura-722144, West Bengal, (PAN: AABAP9285A) Vs. The ACIT, Ward (3)(1), Bankura Aaykar Bhavan, Chandari Dihi Kenduadihi Bankura-722101 West Bengal (Appellant) (Respondent) Present for: Appellant by : None Respondent by : Shri Sanat Kumar Raha CIT(DR) & Shri S.B. Chakraborty, Sr. DR Date of Hearing : 16.06.2025 Date of Pronouncement : 26.06.2025 O R D E R PER RAKESH MISHRA, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as “the Ld. CIT(A)”) passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2021-22 dated 29/01/2025. 02. The grounds of appeal raised by the assessee are reproduced as un- der: “1. For that in view of facts and circumstances of the case, learned Commis- sioner of Income Tax (Appeal) erred on facts as well as in law in sustaining the disallowance of Rs. 40,94,242/- preferred under section 80P of the In- come Tax Act, 1961, as disallowed by learned Assessing Officer. Page | 2 ITA No. 661/KOL/2025 Puncha Samabay Krishi Unnayan Samity; A.Y. 2021-22 2. For that in view of facts and circumstances of the case, learned Commis- sioner of Income Tax (Appeal) erred on facts as well as in law in confirming disallowance the adhoc of Rs. 52,38,840/-, being 30% of the expenses claimed, as disallowed by learned Assessing Officer. 3. For that in view of facts and circumstances of the case, learned Commis- sioner of Income Tax (Appeal) erred on facts as well as in law in sustaining the disallowance of Rs. Rs. 2,49,683/-, being the depreciation claimed, as disallowed by the learned Assessing Officer. 4. For that on the facts and in the circumstances of the case, the order of Ld CIT(APPEAL) u/s. 250 read with assessment order u/s 143(3) /144B dated 21.12.2022, as passed by Ld. AO is erroneous, arbitrary, contrary to material on records and based on suspicion and doubts, being passed without allow- ing any effective hearing u/s. 250, passed in violation of principles of natural justice. 4. For that, the appellant craves leave to add further grounds of appeal or alter any other grounds at the time of hearing.” 03. None represented on behalf of the assessee; therefore, the appeal was heard with the assistance of the ld. DRs. 04. Brief facts of the case are that the assessee is an Association of Per- son being a Primary Agricultural Credit Society. It filed its return of in- come on 09.03.2022, declaring total income as Rs. Nil. The case of the assessee was selected for complete scrutiny under CASS and notices u/s 143(2) & 142(1) of the Act were issued, but the assessee did not respond to the notices issued. The assessment was completed u/s 143(3) read with section 144B of the Income-tax Act, 1961 (the Act) on 23.04.2021 by assessing the total income of ₹95,82,765/- after making disallowances of ₹40,94,242/-, ₹52,38,840/- and ₹2,49,683/- under section 80P, for non- verification of expenses and disallowance of depreciation on account of addition to fixed assets respectively. Aggrieved with the said order, the assessee preferred an appeal before the ld. CIT (A), who dismissed the appeal of the assessee as the assessee failed to comply with the notices issued for hearing and it was inferred that the assessee has no evidence Page | 3 ITA No. 661/KOL/2025 Puncha Samabay Krishi Unnayan Samity; A.Y. 2021-22 to substantiate the grounds taken in the course of the appeal and the findings of the AO were confirmed. 05. Being aggrieved with the order of the ld. CIT (A), assessee has filed the appeal before us. 06. We have perused the orders of the lower authorities. It is submitted in the Grounds of appeal that the Ld. CIT(A) passed an ex parte order. A perusal of the appeal order of the Ld. CIT (A) shows that during the ap- pellate proceedings, the assessee was given adequate opportunity of hear- ing but there was non-compliance before the Ld. CIT (A) and no docu- ments had been produced before the ld. CIT (A). We find that at both the stages of assessment order before the Ld. AO as well as before the Ld. CIT(A) in the appeal, proper representation was not made on behalf of the assessee. The Ld. DR supported the order of the Ld. CIT(A). While in the assessment disallowance and addition have been made on account of an adequate evidence, the appeal has also been decided ex parte, primarily on account of non-prosecution on behalf of the assessee. 07. Therefore, we deem it appropriate in the interest of justice and fair play that another opportunity needs to be provided to the assessee to represent its case properly before the Ld. CIT(A) and set aside the order of the Ld. CIT(A) and remit the appeal to him to be decided afresh, who shall allow an opportunity of being heard to the assessee and also grant an opportunity of representing the case and be heard to the Ld. AO as per rule 46A of the Income Tax Rules, 1962, if required, and thereby pass an order in accordance with law. For statistical purposes, the appeal of the assessee is allowed. The assessee shall not seek any unnecessary ad- journments. The Grounds of appeal raised by assessee are allowed for statistical purposes. Page | 4 ITA No. 661/KOL/2025 Puncha Samabay Krishi Unnayan Samity; A.Y. 2021-22 08. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 26th June, 2025. Sd/- Sd/- (DUVVURU RL REDDY) (RAKESH MISHRA) (VICE PRESIDENT) (ACCOUNTANT MEMBER) Dated: 26th June, 2025 Sudip sarkar, Sr. P.S. Page | 5 ITA No. 661/KOL/2025 Puncha Samabay Krishi Unnayan Samity; A.Y. 2021-22 Copy to: 1. The Appellant: 2. The Respondent. 3. CIT(A), NFAC, Delhi 4. The CIT, 5. DR, ITAT, //True Copy// BY ORDER, Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata "