SHRI LOKAKALYAN CREDIT SOUHARD SAHAKARI NYT,BELAGAVI V. THE INCOME TAX OFFICER, WARD - 1, NIPANI

ITA 332/PAN/2025

AI Insights

The case involves Shree Lokakalyan Souharda Credit Sahakari Niyamit, a cooperative credit society, which appealed against the order of the CIT(A) confirming the additions made under section 68 of the Income Tax Act and the denial of deduction under section 80P. The Assessing Officer had initially made these additions and denials following a scrutiny assessment, which the CIT(A) upheld due to the assessee's non-compliance with notices. The Tribunal, considering the principles of natural justice, decided to provide the assessee another opportunity to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 784769 (ITAT-PANAJI)
• Duration Of Justice: 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 06-10-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIJULA UNIYAL.
• Assessee Lawyers: VEERANNA M MURGOD
• Keywords: Set aside; Unexplained cash credit; Principle of natural justice
• Section: 143(3); 142(1); 68

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER I T A. Nos.332/PAN/2025 (A.Y. 2017-18 ) Shree Lokakalyan Souharda Credit sahakari Niyamit, 1,A/P, Jatrat, Belgaum-591237, Karnataka. Vs . I.T.O-Ward-1, Nemchand Building, 747,AshokNagar, Nippani-591237, Karnataka. PAN .No. AAAJS2263H (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) Assessee by Shri. Veeranna M Murgod.AR Revenue by Smt.Rijula Uniyal.Sr.DR सुनवाई की तारीख/Date of Hearing 11.11.2025 घोषणा की तारीख/Date of Pronouncement 11.11.2025 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of NFAC/CIT(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 of in filing the appeal before the Hon’ble Tribunal and the assesse has filed the application and affidavit for condonation of delay. Whereas, the facts mentioned in the affidavit are reasonable and the Ld. DR has no specific objections. Accordingly, condone the delay and admit the appeal. The assessee has raised the grounds of appeal challenging the Printed from counselvise.com 2 ITA. No..332/PAN/2025 Shree Lokakalyan Souharda Credit Sahakari Niyamit. ex parte order of the CIT(A) sustaining(i) the addition u/se 68 of the Act and (ii) denial of claim of deduction u/sec80P of the Act made by the Assessing Officer. 3. The brief facts of the case are that, the assessee is a cooperative credit society engaged in providing credit facilities to its members. The assesse has filed the return of income for the A.Y 2017-18 on 24.10.2017 disclosing a total income of Rs. Nil after claiming deduction u/sec 80P of the Act of Rs.29,23,649/-. Subsequently the case was selected for complete scrutiny under CASS and notice u/sec143 (2) and u/sec 142(1) of the Act are issued calling for details in respect of claims and the information supporting the return of income filed. The assesse has filed the details and the Assessing Officer (A.O) has dealt on the submissions/details and find that there are cash deposits during the F.Y.2016-17 and the assessee was asked to explain the sources of deposits and also a show cause notice was issued, but there was partial compliance. Whereas the A.O. has dealt on the provisions of section 68 of the Act and made addition of unexplained cash credits of Rs.13,64,500/- and denied the claim of deduction u/sec80P of the Act and finally assessed the total income of Rs.42,88,149/- and passed the order u/sec 143(3) of the Act dated 10.12.2019. 4. 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 and findings of the Printed from counselvise.com 3 ITA. No..332/PAN/2025 Shree Lokakalyan Souharda Credit Sahakari Niyamit. AO and has issued notices of hearing and since there was 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 assesse 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. 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 proper compliance 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 confirming the action of the assessing officer. The CIT(A) has issued the notices of hearing but there was no response and thus the Ld.CIT(A) decided the appeal based on the information available on record. Whereas the assessee has raised grounds of appeal challenging the addition u/sec 68 of the Act and denial of claim of deduction u/sec80P of the Act Printed from counselvise.com 4 ITA. No..332/PAN/2025 Shree Lokakalyan Souharda Credit Sahakari Niyamit. made by the A.O and there could be various reasons for no proper compliance which cannot be overruled. Further the Ld.AR mentioned that the assesse has a good case on merits and shall substantiate with the material evidences and prayed for an opportunity to explain before the lower authorities. Therefore, considering the facts, submissions and principles of natural justice, shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, 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. And the grounds of appeal of the assessee are allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 11/11/2025 as per rule 34(5) of the ITAT Rules 1963. Sd/- (PAVAN KUMAR GADALE) JUDICIAL MEMBER Panaji Dated: 11/11/2025 Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT, Printed from counselvise.com 5 ITA. No..332/PAN/2025 Shree Lokakalyan Souharda Credit Sahakari Niyamit. 6. Guard file. //True Copy// BY ORDER, (Asstt. 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 Printed from counselvise.com "