SHRI RENUKA CO-OPERATIVE CREDIT SOCIETY LTD,BELGAVI V. ASSESSMENT UNIT, INCOME TAX DEPARTMENT, DELHI

ITA 64/PAN/2025

AI Insights

The case involves Shri Renuka Co-operative Credit Society Limited appealing against the order of the National Faceless Assessment Centre (NFAC), Delhi, which was confirmed by the CIT(A). The primary issue was the denial of a deduction claim under section 80P(2)(d) of the Income Tax Act, 1961, amounting to Rs.34,74,257. The Assessing Officer (A.O) had invoked section 144 due to non-compliance by the assessee in responding to notices, leading to an ex-parte order. The CIT(A) upheld the A.O's decision after the assessee failed to comply with the hearing notices. The Tribunal, considering the principles of natural justice, decided to provide another opportunity for the assessee to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474241 (ITAT-PANAJI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIJULA UNIYAL.
• Keywords: Set aside; Principle of natural justice; Co-operative Credit Society
• 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. 64/PAN/2025 (A.Y. 2020-21) Shri Renuka Co-operative Credit Society Limited, Hotel Keerti Campus, P.B.Road, Belgaum-590001, Karnataka. Vs . National Face Less Assessment Centre, NFAC, Delhi. . PAN/GIR No. AABAS0671B (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Assessee by None(Letter dated3-4-2025) Revenue by Smt.Rijula Uniyal.Sr.DR सुनवाई कȧ तारȣख/Date of Hearing 03.04.2025 घोषणा कȧ तारȣख/Date of Pronouncement 04.04.2025 ORDER PER PAVAN KUMAR GADALE ,JM: The assessee has filed the appeal against the order of the National Faceless Appeal Centre (NFAC) Delhi / (CIT(A) passed u/sec144 and u/sec 250 of the Act. The assessee has raised the grounds of appeal challenging the ex-parte order of the CIT(A) on the denial of claim under section 80P(2)(d) of the Act. 2 ITA. No.64/PAN/2025 Shri Renuka Co-operative Credit Society Limited. 2. The brief facts of the case are that, the assesse is a cooperative credit society and has filed the return of income for the A.Y 2020-21 on 05.01.2021 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 the CASS and notice u/sec143(2) and u/sec 142(1) of the Act was issued calling for details in respect of claims and the information supporting the return of income filed and there was no proper response. Whereas the A.O find that the assessee society is not eligible for claim of deduction under section 80P of the Act, hence the AO considering the information available on record has invoked the provisions of Sec.144 of the Act and denied the claim of deduction u/sec80P(2)(d) of the Act of Rs.34,74,257/- and after setting off of current year business loss has assessed the total income of Rs.28,26,199/- and passed the order u/sec 144 r.w.s 144B of the Act dated 16.09.2022. 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 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 3 ITA. No.64/PAN/2025 Shri Renuka Co-operative Credit Society Limited. by the order of the CIT(A), the assesse has filed an appeal before the Hon'ble Tribunal. 4. We heard the Ld.DR submissions and perused the material on record and none appeared on behalf of the assesse. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The Ld. CIT(A) has issued the notices of hearing referred at Pag 2 Para 4of the CIT(A) 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 disallowances by the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the 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, set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh on merits and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information 4 ITA. No.64/PAN/2025 Shri Renuka Co-operative Credit Society Limited. for early disposal of appeal. And, we allow the grounds of appeal of the assessee for statistical purposes. 5. In the result, the appeal filed by assesse is allowed for statistical purposes. Order pronounced in the open court on 04.04.2025. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 04/04/2025 Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT, Mumbai 6. Guard file. //True Copy// BY ORDER, (Asstt. Registrar)ITAT, Panaji 5 ITA. No.64/PAN/2025 Shri Renuka Co-operative Credit Society Limited. 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 "