SHRI BASAVESHWAR URBAN CREDIT SOUHARD SAHAKARI NIYAMIT, SANKESHWAR,SANKESHWAR V. ITO WARD 1, GOKAK, GOKAK

ITA 178/PAN/2024

AI Insights

The case involves Shri Basaveshwar Urban Credit Souhard Sahakari Niyamit, a cooperative society, appealing against the orders of the National Faceless Appeal Centre (NFAC) Delhi / CIT(A) concerning the denial of deductions under section 80P(2)(a)(i) and section 80P(2)(d) of the Income Tax Act, as well as disallowance under section 36(1)(va) for delayed payment of provident fund contributions. The Assessing Officer (A.O) had initially denied these claims and assessed a total income, which was contested in the appeal to the CIT(A). The CIT(A) dismissed the appeal ex-parte due to non-compliance by the assessee in attending hearings. The Tribunal, considering the principles of natural justice, decided to provide another opportunity for the assessee to present its case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 471239 (ITAT-PANAJI)
• Duration Of Justice: 4 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Next Hearing Date: 11-11-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 04-07-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Principle of natural justice
• Section: 143(3); 142(1); 143(2); 250

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH _ PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI G D PADMAHSHALI ACCOUNTANT MEMBER ITA. Nos. 178/PAN/2024 (A.Y. 2017-18 ) Vs |ITO-Ward-1, Gokak, Belagavi-591307. Shri Basaveshwar Urban Credit Souhard Sahakari Niyamit, Azad Road, Sankeshwar, Karnataka. Taluka Hukkeri, Sankeshwar-591313. Karnataka. PAN .No. AACAS0494D (sfUtetei/Appellant | | @eaeil/Respondent) Shri.Shivanand Halbhavi.AR Ms.Nazeera Mohammad.Sr.DR 11.11.2024 12.11.2024 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of National Faceless Appeal Centre (NFAC) Delhi / CITV(A) passed u/sec 143(3) and u/sec 250 of the Act. 2. At the time of hearing, the Ld.AR of the assessee submitted that there is a delay in filing the appeal before the Hon’ble Tribunal and the assesse has filed the affidavit for condonation of delay. Whereas, the facts mentioned in the affidavit are reasonable and the Ld. DR has no Shri Basaveshwar Urban Credit Et alge at Niyamit.Sankeshwar. specific objections. Accordingly, we condone the delay and admit the appeal. The assessee has raised the grounds of appeal challenging the ex-parte order of the CIT(A) (1) on the denial of claim under section 80P(2)(a)(i) & deduction under section 80P(2)(d) of the Act (2) disallowance of claim u/sec36(1)(va) of the Act for the delayed payment of provident fund contributions . 3.The brief facts of the case are that, the assessee is a cooperative society and has filed the return of income for the A.Y 2017-18 on 30.10.2017 disclosing a total income of Rs. Nil after claiming deduction u/sec 80P(2)(a)(i) of the Act. Subsequently the case was selected for scrutiny under CASS and notice u/sec 143(2) & u/sec 142(1) of the Act are issued. In compliance, the assesse has filed the details and submissions in support of return of income filed. Whereas the A.O was not satisfied with the explanations and dealt on the provisions and judicial decisions and denied(i) the claim of deduction u/sec 80P2(a)(i) of the Act of Rs.39,86,851/ and (ii) disallowance u/sec36(1)(va) of the Act of Rs.21,30,145/- and assessed the total income of Rs.61,16,996/- and passed the order u/sec143(3) of the Act dated 24.12.2019. 4, 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 and has issued notices of hearing and since there was ITA. No. 178/PAN/2024 Shri Basaveshwar Urban Credit Souhard Sahakari Niyamit.Sankeshwar. no compliance by the assessee to notices. Therefore the ~ CIT(A) considering the information on record has confirmed the action of the A.O and dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal. 5. 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. Further the assessee has a good case on merits and shall substantiate with the material evidences and prayed for an opportunity to explain before the lower authorities. Per Contra, the Ld.DR supported the order of the CIT(A). 6. We. heard the rival submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance nor appearance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assesse is not-.interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The CIT(A) has issued the notices of hearing on 28.01.2021,26.7.2022,17.08.2022,07.02.2023&10.05.2023 referred at Page 3 Para 3 of the order but there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal ITA. No. 178/PAN/ 2024 Shri Basaveshwar Urban Credit Souhard Sahakari Niyamit.Sankeshwar. based on the information available on record. Whereas the assessee has raised grounds of appeal challenging the additions by the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the facts and principles of natural justice, we shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, we set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh and the assesse should be provided adequate opportunity of hearing and _ shall cooperate in submitting the information for early disposal of the Appeal. And, we allow the grounds of appeal of the assessee for statistical purposes. 7. In the result, the appeal filed by assessee is allowed for statistical purposes. Order pronounced in the open court on 12.11.2024. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 12/11/2024 . ITA. No. 178/PAN/ 2024 Shri Basaveshwar Urban Credit Souhard Sahakari Niyamit.Sankeshwar. 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 Initial Date wesc pe ert ed 3. Draft proposed & placed before PS the second member 4. Draft discussed/approved by PS Second Member. 5. Approved Draft comes to the PS Sr.PS/PS Date on which file goes to the AR Date on which file goes to the Head Clerk. Dictation Pad is enclosed "