RADHAKRISHNA NAGAR SAHAKARI PAT SANSTHA LTD.,MALKAPUR V. ITO WARD-2, KHAMGAON

ITA 546/NAG/2024

AI Insights

The case involves Radhakrishna Nagar Sahakari Pat Sanstha Ltd., the appellant, contesting an order from the Commissioner of Income Tax (Appeals) which confirmed disallowances made by the Assessing Officer regarding deductions under section 80P of the Income Tax Act and additions related to unsecured loans. The Tribunal noted the assessee's failure to appear at both the assessment and appellate stages, leading to ex parte orders. Emphasizing the principles of natural justice, the Tribunal decided to set aside the CIT(A)'s order and remand the case back to the Assessing Officer for a fresh examination, while also imposing a cost for non-compliance with procedural requirements.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 24357 (ITAT-NAGPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHAY Y. MARATHE
• Assessee Lawyers: KAPIL HIRANI
• Keywords: Set aside; Opportunity of being heard; Commercial expediency; Principle of natural justice
• Section: 80P; 101

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI K.M. ROY, ACCOUNTANT, MEMBER ITA no.546/Nag./2024 (Assessment Year : 2022–23) Radhakrishna Nagar Sahakari Pat Sanstha Ltd., Buldhana Road Malkapur 443 101 PAN – AAATR7656R ……………. Appellant v/s Income Tax Officer Ward–2, Khamgaon ……………. Respondent Assessee by : Shri Kapil Hirani Revenue by : Shri Abhay Y. Marathe Date of Hearing – 21/01/2025 Date of Order – 23/01/2025 O R D E R PER V. DURGA RAO, J.M. The aforesaid appeal by the assessee is against the impugned order dated 20/08/2024, passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [“learned CIT(A)”], for the assessment year 2022–23. 2. In its appeal, the assessee has raised following grounds:– “1. On the basis of the facts and in the circumstances of the case and as per law, the order passed by CIT (A) may please be set aside as the same is passed ex parte and without discussing the merits of the case. 2. On the basis of the facts, in the circumstances of the case and as per law, the CIT (A) is not justified in confirming the disallowance of deduction u/s. 80P of the Act of Rs. 94,96,805/- made by AO in respect of interest received on 2 Radhakrishna Nagar Sahakari Pat Sanstha Ltd. investment made with co-operative banks when the said investments were made with commercial expediency. 3. On the basis of facts, in the circumstances of the case and as per law the CIT(A) is not justified in confirming the addition in respect of unsecured loans of Rs. 1,03,90,813/-. 4. The appellant craves for the addition to, deletion, alteration, modification of the above grounds of appeal.” 3. While going through the orders of the authorities below, we find that the assessee did not appear before the Assessing Officer during the assessment proceedings and the Assessing Officer was forced to passed ex– parte order by making various additions. While making additions, it is the observations of the Assessing Officer that the assessee failed to furnish details or documentary evidences in response to the statutory notices issued by him. We also find that the assessee also failed to appear before the learned CIT(A) during the first appellate proceedings. The learned CIT(A) observed that the assessee failed to comply with the statutory notices which remained non–complied by the assessee and hence the learned CIT(A) also passed the impugned order by dismissing the appeal filed by the assessee without going onto the merits of the issues raised by the assessee. Be that as it may. We are of the opinion that in the interest of justice and following the principles of natural justice, one opportunity is hereby granted to the assessee to substantiate the case before the Assessing Officer. Consequently, we set aside the impugned order passed by the learned CIT(A) and restore the entire matter to the file of the Assessing Officer for denovo adjudication after providing reasonable opportunity of being heard to the assessee. The assessee is also directed to be prompt in adhering to the statutory notices to 3 Radhakrishna Nagar Sahakari Pat Sanstha Ltd. be issued by the Assessing Officer without seeking any adjournment, except in exceptional case. 4. Given the assessee’s lackadaisical approach in non-compliance and procedural delays, we deem it fit and appropriate to impose a cost on the assessee for an amount of ` 10,000 (Rupees Ten Thousand Only) for the said appeal payable to the Maharashtra State Legal Services Authority and produce evidence of payment before the Assessing Officer. This cost underscores the importance of adhering to procedural requirements and timely compliance during assessment and appellate proceedings. 5. Subject to the condition as stated in Para–4 above, in the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 23/01/2025 Sd/- K.M. ROY ACCOUNTANT MEMBER Sd/- V. DURGA RAO JUDICIAL MEMBER NAGPUR, DATED: 23/01/2025 Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Nagpur; and (5) Guard file. True Copy By Order Pradeep J. Chowdhury Sr. Private Secretary Sr. Private Secretary ITAT, Nagpur "