SHRI MAULI CO-OP CEDIT SOCITETY LIMITED,BELGAUM V. .INCOME TAX OFFICER, WARD - 1(3), BELGAUM

ITA 197/PAN/2024

AI Insights

The case involves Shri Mauli Coop Credit Society Limited appealing against the order of the CIT(A), which confirmed the Assessing Officer's decision denying a claim under section 80P of the Income Tax Act. The Assessing Officer had initially denied the claim and assessed the total income based on non-compliance with notices regarding unexplained cash deposits. The CIT(A) upheld this decision due to the assessee's non-compliance with hearing notices. The Tribunal, considering the principles of natural justice, decided to provide another opportunity for the assessee to present their case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 32331 (ITAT-PANAJI)
• Duration Of Justice: 4 month(s) 2 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: 2016-2017
• Appeal Filed On: 08-08-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GURUKUMAR
• Assessee Lawyers: PRAMOD VAIDHYA
• Keywords: Set aside; Principle of natural justice
• Section: 144; 142(1); 250; 80P

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI G D PADMAHSHALI ACCOUNTANT MEMBER I T A. Nos. 197/PAN/2024 (A.Y. 2016-17 ) Shri Mauli Coop Credit Society Limited, Baswan Galli, Desur, Belgaum-590014. Karnataka. Vs . ITO-Ward-1(3), AayakarBhavan, Nehru Road, Belagavi-590001. Karnataka. . PAN .No. AAFAS2970M (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Assessee by Shri. Pramod Vaidhya.AR Revenue by Shri.Gurukumar Sompalle Sr.DR सुनवाई कȧ तारȣख/Date of Hearing 05.12.2024 घोषणा कȧ तारȣख/Date of Pronouncement 11.12.2024 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of the Additional/J CIT(A) passed u/sec 144 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 2 ITA. No. 197/PAN/2024 Shri Mauli Coop credit society Limited. 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 of the Act 3. The brief facts of the case are that, the assessee is a cooperative credit society. The Assessing Officer (AO) based on the information from AIMS found that the assesse has made cash deposits in the bank account during the F.Y.2015-16 and the assesse has not filed the return of income and further the notice u/sec 142(1) of the Act along with questionnaire was issued and there was no compliance. Since, no explanations/details were filed, the AO considering the information available on record invoked the provisions of Sec. 144 of the Act and has denied the claim of deduction u/sec80P of the Act and assessed the total income of Rs.5,55,472/- and passed the order u/sec 144 of the Act dated 27.12.2018. 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 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. 3 ITA. No. 197/PAN/2024 Shri Mauli Coop credit society Limited. 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 referred at Page 3 Para 4.1 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 based on the information available on record. Whereas the assessee has raised grounds of appeal challenging the addition made 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. 4 ITA. No. 197/PAN/2024 Shri Mauli Coop credit society Limited. 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 11.12.2024. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 11/12/2024 5 ITA. No. 197/PAN/2024 Shri Mauli Coop credit society Limited. 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 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 "