SERVICE HOUSING COOPERATIVE SOCIETY LTD.,RANCHI V. ITO, EXEMPTION WARD, RANCHI

ITA 320/RAN/2024

AI Insights

This case involves the Service Housing Cooperative Society Ltd., which appealed against the orders of the lower tax authorities concerning the denial of exemption under sections 11 and 12 of the Income Tax Act, 1961, for the assessment year 2016-17. The society had filed its return declaring a total income of ₹ 7,16,040, which was significantly lower than the gross receipts of ₹ 3,35,35,371 assessed by the Assessing Officer due to non-compliance with procedural requirements. The initial appeal to the CIT(A) was dismissed due to lack of supporting documents. The tribunal, noting the absence of representation for the assessee and the repeated non-compliance, decided to set aside the lower orders and remand the case for a fresh assessment, emphasizing the need for the assessee to comply fully with the procedural requirements in the remand proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 780676 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Appeal Filed On: 08-08-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Benefit of exemption
• Section: 144; 142(1); 11; 12A; 12; 10B

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “RANCHI BENCH”, RANCHI (VIRTUAL HEARING AT KOLKATA) SHRI SONJOY SARMA, JUDICIAL MEMBER SHRI RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER I.T.A. No. 320/RAN/2024 (Assessment Year 2016-17) Service Housing Cooperative Society Ltd., Ashok Nagar, Ranchi - 834002 [PAN: AAAAS7534E] ..…...…………….... Appellant vs. Income Tax Officer, Exemption Ward, Ranchi, Central Revenue Building, 5 Main Road, Ranchi - 834001 ..…...…………….... Respondent Appearances by: Assessee represented by : None Department represented by : Rinku Singh, CIT-DR Date of concluding the hearing : 10.09.2025 Date of pronouncing the order : 09.10.2025 O R D E R PER SONJOY SARMA, JUDICIAL MEMBER This appeal arises from order dated 11.06.2024, passed u/s 250 of the Income Tax Act, 1961 (hereafter “the Act”) by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) [hereafter “the Ld. CIT(A)] for the assessment year 2016-17. 2. Brief facts of the case are that the assessee is a co-operative housing society regularly filing returns of income claiming exemption under sections 11 and 12 of the Income-tax Act, 1961. For the relevant assessment year, the assessee filed its return of income declaring total income of ₹ 7,16,040/–. The return was processed under section 143(1) of the Act. Subsequently the case was selected for scrutiny under CASS on the grounds that Form No. 10B was filed after the due date, registration Printed from counselvise.com 2 ITA No. 320/RAN/2024 Service Housing Cooperative Society Ltd. under section 12A was questioned, and the assessee had disclosed large gross receipts. Accordingly, notice under section 143(2) of the Act was issued, in response to which the assessee filed replies on the e-portal. Subsequently, notice under section 142(1) of the Act was issued. The assessee sought short adjournments and filed certain petitions. 3. However, due to incomplete compliance, the Assessing Officer proceeded to complete the assessment under section 144 of the Act. The benefit of exemption under section 11 was denied, and the gross receipts of ₹ 3,35,35,371/– were assessed as total income, rejecting the returned income of ₹ 7,16,040/–. 4. Aggrieved, the assessee preferred appeal before the learned CIT(A). However, the appeal was dismissed, sustaining the assessment order, absence of supporting documents. 5. Aggrieved by the order of Ld. CIT(A) the assessee is in appeal before this tribunal. At the time of hearing also, no one appeared on behalf of the assessee to substantiate the grounds. We have, however, heard the learned Departmental Representative and perused the record. The learned DR supported the orders of the authorities below, stating that repeated non- compliance justified the ex parte orders. 6. On perusal of the record, we find that the assessment has been framed under section 144 of the Act due to non-compliance/partial compliance, and even before the learned CIT(A), the assessee did not effectively represent its case. Thus, CIT (A) uphold the order of the assessing officer 7. We therefore in the interest of substantial justice and fair play, deem it appropriate to provide one more opportunity to the assessee. Accordingly, the orders of the authorities below are set aside, and the matter is restored to the file of the Assessing Officer for fresh adjudication. The assessee is directed to fully cooperate and comply with the notices issued in the Printed from counselvise.com 3 ITA No. 320/RAN/2024 Service Housing Cooperative Society Ltd. remand proceedings without fail, failing which the Assessing Officer shall be at liberty to decide the matter in accordance with law. 8. In view of the above discussion, the appeal of the assessee is allowed for statistical purposes. 9. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 09.10.2025 Sd/- Sd/- (Ratnesh Nandan Sahay) (Sonjoy Sarma) Accountant Member Judicial Member Dated: 09.10.2025 AK, Sr. P.S. Copy of the order forwarded to: 1. Appellant 2. Respondent 3. Pr. CIT 4. CIT(A) 5. CIT(DR) //True copy// By order Sr. Private Secretary, Ranchi Bench Printed from counselvise.com "