SHRI AMBAI GRAMIN BIGARSHETI SAH PAT SANSTHA MARYADIT RADHANAGARI,RADHANAGARI KOLHAPUR V. ITO, WARD 1(5), KOLHAPUR

MA 78/PUN/2024

AI Insights

The case revolves around a Miscellaneous Application filed by Shri Ambai Gramin Bigarsheti Sah Pat Sanstha Maryadit against an order of the National Faceless Appeal Centre (NFAC) which dismissed their appeal due to non-compliance with section 249(4)(b) of the Income Tax Act, concerning advance tax liability. The assessee argued that as a cooperative credit society, all its income is eligible for deduction under section 80P, and thus, there was no advance tax liability. The Tribunal initially dismissed the appeal based on the interpretation of sections 80A(5) and 80P, which was contested in the Miscellaneous Application. The Tribunal recognized the error in applying section 80AC to section 80P retrospectively for AY 2017-18, leading to the recall of the earlier order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714155 (ITAT-PUNE)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 07-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Other Referred Cases: EBR Enterprises vs. Union of India [2019] 107 taxmann.cm 220 (Bom.) (HC), MA 363/PUN/2022 arising out of ITA No. 1306/PUN/2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANDEEP P SATHE
• Assessee Lawyers: PRAMOD S SHINGTE
• Keywords: Co-operative Credit Society

Judgement Text

" आयकर अपीलीय अधिकरण “एक सदस्य मामला” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / MA No.78/PUN/2024 (Arising out of ITA No.401/PUN/2024) निर्धारण वर्ा / Assessment Year: 2017-18 Shri Ambai Gramin Bigarsheti Sah Pat Sanstha Maryadit, Radhanagari, Kolhapur-416228 PAN : AAHAS5791A Vs. ITO, Ward – 1(5), Kolhapur अपीलधर्थी /Applicant प्रत्यर्थी / Respondent Assessee by : Shri Pramod S Shingte Department by : Shri Sandeep P Sathe Date of hearing : 18-07-2025 Date of Pronouncement : 07-08-2025 आदेश / ORDER PER ASTHA CHANDRA, JM : By this Miscellaneous Application the assessee seeks to recall the order passed by the Tribunal in ITA No. 401/PUN/2024 dated 02.05.2024 pertaining to Assessment Year (“AY”) 2017-18. 2. The Miscellaneous Application filed by the assessee states the following facts and contentions raised therein : “Above referred appeal is filed by appellant against the order U/S 250 passed by NFAC Dated 21/02/2024, for AY 2017-18. In this case your appellant has raised ground no. 1 which reads as follows: \"1. On the facts and in the circumstances of the case and in law the CIT(A), NFAC erred in not admitting the appeal of the appellant on account of alleged non- compliance of the requirements of s.249(4)(b) i.e. non-payment of tax equivalent to advance tax liability before filing the appeal, not accepting the submission of the appellant that it being a co-operative credit society engaged in providing credit facilities to its members its entire income is eligible for deduction u/s 80P and hence there is no advance tax liability in its case.\" While dealing with this ground in para 5 Hon'ble Bench has made following comments, based on which appeal is dismissed. Printed from counselvise.com 2 M.A. No. 78/PUN/2024, AY 2017-18 \"5. I have given my thoughtful consideration to the foregoing vehement rival stands. I find no merit in assessee's case denying it's advance tax liability because of applicability of sec.80P of the Act. This is for the precise reason that such a deduction has to be claimed in \"a return\" going by sec.80A(5) of the Act which has been held to be a mandatory condition as per EBR Enterprises vs. Union of India [2019] 107 taxmann.cm 220 (Bom.) (HC). It is made clear that there is no material in the case file indicating the assessee to have raised the foregoing sec.80P claim in a return in above terms. That being the case, I find no merit in assessee's instant sole substantive grievance seeking to reverse NFAC's lower appellate findings dismissing its appeal u/sec.249(4)(b) of the Act. Ordered accordingly.\" In this regard it is most humbly submitted that during the course of hearing before Hon'ble bench, neither reference of section 80A(5) was mentioned nor it was argued by Ld. DR. Similarly such reference of Section 80A(5) r.w.s. 80AC makes it clear that appellant has to file the return before the due date prescribed u/s 139(1) to claim the deduction u/s 80P. However, section 80AC has been made applicable to section 80P w.e.f. 01/04/2018, whereas, the relevant year under appeal was AY 2017-18, and therefore the conclusion drawn by Hon'ble Bench is not in consonance with the legal provision. We also draw your attention to the MA order passed in MA 363/PUN/2022 arising out of ITA No. 1306/PUN/2019, wherein, for similar error order was recalled. The copy of same is enclosed as Annexure I, we rely on the same and pray that this MA may kindly be allowed. In view of this we most humbly submit that the above referred order suffers from an error as pointed out and needs to be recalled. We pray accordingly.” 3. The Ld. AR reiterated the above stated facts and contentions raised in the Miscellaneous Application. The Ld. AR submitted that the Tribunal has dismissed the appeal of the assessee holding that there is no merit in assessee's case denying its advance tax liability because of applicability of section 80P of the Act. He submitted that the provisions of section 80AC read with section 80A(5) of the Act is applicable to section 80P only w.e.f. 01.04.2018 whereas the relevant year under consideration is AY 2017-18 and therefore the order of the Tribunal suffers from a mistake apparent on record which is rectifiable under section 254(2) of the Act and accordingly requested for recall of the Tribunal’s order. 4. The Ld. DR, on the other hand, opposed the Miscellaneous Application. 5. We have heard the Ld. Representative of the parties, considered their respective submissions and carefully perused the order of the Tribunal. We find the above contention/ submission of the Ld. AR is correct. Considering the facts and in the circumstances of the case enumerated above, we deem it fit to recall the order dated 02.05.2024 in ITA No. 401/PUN/2024 for AY 2017-18 and direct the registry to fix the aforesaid appeal for hearing in due course before the regular bench. Printed from counselvise.com 3 M.A. No. 78/PUN/2024, AY 2017-18 6. In the result, Miscellaneous Application of the assessee is allowed. Order pronounced in the open court on 07th August, 2025. Sd/- Sd/- (Manish Borad) (Astha Chandra) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ददन ांक / Dated : 07th August, 2025. रदि आदेश की प्रनिनलनप अग्रेनर्ि / Copy of the Order forwarded to : 1. अपील थी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The Pr. CIT concerned. 4. धिभागीय प्रधिधिधि, आयकर अपीलीय अधिकरण, “एक सदस्य मामला” बेंच, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. ग र्ड फ़ इल / Guard File. //सत्य दपत प्रदत// True Copy// आदेश नुस र / BY ORDER, िररष्ठ दनजीसदिि / Sr. Private Secretary आयकरअपीलीयअदधकरण ,पुणे/ ITAT, Pune Printed from counselvise.com "