SHRI GOPALKRISHNA CO-OPERATIVE CREDIT SOCIETY LTD,BHATKAL V. .INCOME TAX OFFICER, WARD - 2, KARWAR

ITA 154/PAN/2023

AI Insights

The case involves Shri Gopalkrishna Co-operative Credit Society Limited, which appealed against the order of the National Faceless Appeal Centre (NFAC)/CIT(A) that partly sustained the disallowance of a claim for deduction under section 80P(2)(d) of the Income Tax Act. The assessee had initially filed a return declaring nil income after claiming deductions under section 80P. However, the Assessing Officer (A.O) was not satisfied with the explanations provided and assessed the total income, leading to an appeal before the CIT(A), which resulted in a partial relief. Aggrieved by this, the assessee approached the Tribunal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 24504 (ITAT-PANAJI)
• Duration Of Justice: 1 year(s) 2 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Assessment Year: 2020-2021
• Appeal Filed On: 15-09-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURESH KUMAR C.B.
• Section: 143(3); 142(1); 143(2); 250; 80P

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHIR PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI GD PADMAHSHALI, ACCOUNTANT MEMBER ITA No. 154/PAN/2023 (A.Y: 2020-21) Shri Gopalkrishna Co- operative Credit Society Limited. Bhatkal, Car Street Bhatkal, North Kanara-581320, Karnataka. Vs. I T O – Ward 2 Kaiga Road, Karwar-581301 Karnataka. èथायी लेखा सं./जीआइआर सं./PAN No. AAIAS8394Q Appellant .. Respondent Assessee by : None Revenue by : Shri.Suresh Kumar C.B.Sr.DR Date of Hearing 10.12.2024 Date of Pronouncement 11.12.2024 आदेश / O R D E R The appeal is filed by the assesse against the order of the National Faceless Appeal Centre (NFAC)/CIT(A) passed U/sec 143(3) and u/sec 250 of the Act. The assesse has raised the grounds of appeal challenging the order of the CIT(A) on partly sustaining the disallowance of claim of deduction under section 80P(2)(d) of the Act. ITA No. 154/PAN/2023 Shri Gopalkrishna Co-op Credit Society Ltd. - 2 - 2. 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 2020-21 on 22.02.2021 disclosing a total income of Rs.NIL after claiming deduction u/sec 80P of the Act. Subsequently the case was selected for Limited 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 . Whereas the A.O was not satisfied with the explanations and dealt on the provisions and judicial decisions and has restricted the claim of deduction u/sec 80P2(d) of the Act of Rs.57,67,981/-and assessed the total income of Rs.57,67,981/- and passed the order u/sec143(3) of the Act dated 21.09.2022. 3. Aggrieved by the order, the assesse has filed an appeal before the CIT(A). Whereas the CIT(A) has considered the grounds of appeal, statement of facts, the submissions of the assesse and has partially granted relief and has sustained the addition of Rs.27,16,202/- and partly allowed the assesse appeal. Aggrieved by the order of the CIT(A), the ITA No. 154/PAN/2023 Shri Gopalkrishna Co-op Credit Society Ltd. - 3 - assessee has filed an appeal before the Hon’ble Tribunal. 4. We heard the Ld.DR submissions and perused the material on record as none appeared on behalf of the assesse. The sole crux of the disputed issue is with respect to partial sustainment of disallowance of deduction U/sec 80 P(2)(d) of the Act. The assesse contentions as per the grounds are that the interest income derived by a co-operative society from its deposits with the co-operative societies would be entitled for deduction U/sec 80P(2)(d) of the Act. We find the A.O/CIT (A) has not pointed out/ verified the facts of earning of interest income and there are no findings on this issue. Accordingly, we considering the facts and circumstances and to meet the ends of justice, shall provide with one more opportunity of hearing to the assesse to substantiate the claims with the evidences and shall restore the disputed issue to the extent of CIT(A) sustaining the disallowance of Rs27,16,202/- to the file of the CIT(A) to examine and verify the claim and adjudicate on the merits. And the assesse should be provided adequate opportunity of hearing and the assessee should cooperate in ITA No. 154/PAN/2023 Shri Gopalkrishna Co-op Credit Society Ltd. - 4 - submitting the information. And we allow the grounds of appeal of the assesse for statistical purposes. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 11.12.2024. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 11/12/2024 ITA No. 154/PAN/2023 Shri Gopalkrishna Co-op Credit Society Ltd. - 5 - आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. The CIT (Judicial) 4. The PCIT 5. DR, ITAT, 6. Guard File आदेशानुसार/ BY ORDER, स×याͪपत ĤǓत //True Copy// 1. ( Asst. Registrar) ITAT, Panaji 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 2. Other Member… on "