SHREE JADISIDDESHWAR URBAN CREDIT SOUHARD SAHAKARI LIMITED ,BELGAUM V. ASSESSMENT UNIT, INCOME TAX DEPARTMENT, DEELHI

ITA 257/PAN/2025

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The case involves Shri Jadisiddheshwar Urban Credit Souhard Sahakari Limited, a cooperative society engaged in providing credit facilities, which appealed against the orders of the Assessing Officer (A.O) and the CIT(A). The A.O had issued a notice under section 148 of the Income Tax Act, believing income had escaped assessment for the assessment year 2018-19, based on large cash transactions observed in the financial year 2017-18. The A.O denied the claim of deduction under section 80P and assessed the total income accordingly. The CIT(A) upheld the A.O's decision, leading to the appeal before the ITAT. The main contention was the validity of the notice under section 148 and the denial of the deduction under section 80P.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 830706 (ITAT-PANAJI)
• Duration Of Justice: 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 26-08-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIJULA UNIYAL.
• Assessee Lawyers: PRAMOD Y VAIDYA
• Keywords: Opportunity of being heard; Principle of natural justice; Reason to believe
• Section: 142(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” PANAJI BENCH BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER I T A. No.257/PAN/2025 (A.Y. 2018-19) Shri Jadisiddheshwar Urban Credit Souhard Sahakari Limited, Near Vithal Mandr Bellad Bagewadi, Talhukkeri, Belgaum-591305, Karnataka. Vs . I T O, National e Assessment Centre, Delhi. PAN .No. AACAS2214F (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) Assessee by Shri.Pramod Y Vaidya.AR Revenue by Smt.Rijula Uniyal. Sr.DR सुनवाई की तारीख/Date of Hearing 19.01.2026 घोषणा की तारीख/Date of Pronouncement 22.01.2026 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of the NFAC Delhi/CIT(A) passed u/sec147 r.w.s144B of the and u/sec 250 of the Act. The assessee has raised the grounds of appeal challenging the validity of notice u/sec148 of the Act and the CIT(A) sustaining the denial of claim of deduction u/sec80P of the Act made by the Assessing Officer. Printed from counselvise.com 2 ITA. No.257/PAN 2025. Shri Jadisiddheshwar Urban Credit Souhard sahakari Limited. 2. The brief facts of the case are that, the assesse is a cooperative society and is engaged in activities of providing credit facilities to its members. The income tax department based on the NMS portal found large transactions of cash deposits and with drawls done by the assesse in the F.Y.2017-18 and the assesse has not filed the return of income for the A.Y.2018-19. The Assessing officer (A.O) has reason to believe that the income has escaped the assessment and issued notice u/sec148 of the Act and further notice u/sec143 (2) and u/sec 142(1) of the Act are issued calling for the details and there was compliance. The Assessing Officer (A.O) has dealt on the submissions filed on 06.06.2023 & 14.02.2024 in respect of validity of issue of notice u/sec148 of the Act and filling of return of income in lieu of said notice. Further the A.O found that for the A.Y.2018-19 the assessee has not filed the return of income u/sec 139(1) of the Act and the conditions stipulated under section 80AC of the Act are not complied by the assessee and the A.O has denied the claim of deduction u/sec80P of the Act of Rs.766693/- and assessed the total income of Rs.766698/- and passed the order u/sec147 r.w.s144B of the Act dated 18.03.2024. 3. Aggrieved by the order, the assessee has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the AO but has sustained the action of the A.O and dismissed the assessee appeal. Aggrieved by the order of the CIT(A), Printed from counselvise.com 3 ITA. No.257/PAN 2025. Shri Jadisiddheshwar Urban Credit Souhard sahakari Limited. the assessee has filed an appeal before the Hon'ble Tribunal. 4. At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming the action of the Assessing officer overlooking the information of the assessment proceedings. The Ld.AR mentioned that the CIT(A) has not dealt on the details and evidences filed in the appellate proceedings on the validity of notice. Per Contra, the Ld.DR supported the order of the CIT(A). 5. Heard the rival submissions and perused the material on record. The sole crux of the disputed issue envisaged by the Ld.AR that the CIT(A) has erred in sustaining the denial of claim of deduction u/sec80P of the Act made by the Assessing Officer and overlooking the facts and material evidences filed on the validity of reasseement proceedings. Prima-facie, the CIT(A) has dealt on the findings of the AO and has not considered the submissions/evidences of the assesse filed in the proceedings and there is no findings on the validity of issue of notice u/sec148 of the Act. Therefore, considering the overall facts, circumstances and principles of natural justice shall provide with one more opportunity of hearing and accordingly restore the disputed issue to the file of the CIT(A) for afresh adjudication and the CIT(A) shall provide adequate opportunity of being heard to the assessee and the assessee should also cooperate in Printed from counselvise.com 4 ITA. No.257/PAN 2025. Shri Jadisiddheshwar Urban Credit Souhard sahakari Limited. submitting the information for early disposal of the appeal and the grounds of appeal of the assessee are allowed for statistical purpose. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 22/01/2026 as per rule 34(5) of the ITAT Rules 1963. Sd/- (PAVAN KUMAR GADALE) JUDICIAL MEMBER Panaji Dated: 22/01/2026 Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT, 6. Guard file. //True Copy// BY ORDER, (Asstt. Registrar)ITAT, Panaji Printed from counselvise.com 5 ITA. No.257/PAN 2025. Shri Jadisiddheshwar Urban Credit Souhard sahakari Limited. Date Initial 1. Draft dictated on PS 2. Draft placed before author PS 3. Draft proposed & placed before the second member PS 4. Draft discussed/approved by Second Member. PS 5. Approved Draft comes to the Sr.PS/PS PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed Printed from counselvise.com "