SOLAPUR SIDDHESHWAR SAHAKARI BANK LTD.,SOLAPUR V. ACIT, CIRCLE-1, SOLAPUR, SOLAPUR

ITA 194/PUN/2025

AI Insights

The case involves Solapur Siddheshwar Sahakari Bank Ltd., which appealed against the ex-parte order of the Ld. Addl. / JCIT(A), Chandigarh, concerning the assessment year 2012-13. The primary issues in the appeal were the validity of re-assessment proceedings under section 147 of the Income Tax Act, 1961, and the sustainment of additions made under sections 40(a)(ia) and 36(1)(viia) of the Act. The bank had initially filed its return declaring a total income, which was later scrutinized and reassessed, leading to additional income being declared. The appeal to the Ld. Addl. / JCIT(A) was dismissed for want of prosecution after the assessee failed to comply with multiple opportunities to present their case. The Tribunal, considering the circumstances of non-communication by the previous counsel, decided to remand the case back to the Ld. Addl. / JCIT(A) for a decision on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471171 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Other Referred Cases: CIT vs. B.N. Bhattacharya reported in 118 ITR 461 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR KESHARI
• Assessee Lawyers: PRAMOD S SHINGTE
• Section: 147; 148; 143(3); 194A; 40(a)(ia)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER ITA No.194/PUN/2025 Assessment year : 2012-13 Solapur Siddheshwar Sahakari Bank Ltd. 205, 1st Floor, Head Office, Bhisar Galli Road, Solapur – 413002 V s. ACIT, Circle-1, Solapur PAN: AAHPQ9072D (Appellant) (Respondent) Assessee by : Shri Pramod S Shingte Department by : Shri Ajay Kumar Keshari, CIT Date of hearing : 24-03-2025 Date of pronouncement : 24-03-2025 O R D E R PER R. K. PANDA, VP : This appeal filed by the assessee is directed against the ex-parte order dated 26.12.2024 of the Ld. Addl. / JCIT(A), Chandigarh relating to assessment year 2012-13. 2. Although a number of grounds have been raised by the assessee, however, these all relate to the ex-parte order of the Ld. Addl. / JCIT(A) in upholding the validity of re-assessment proceedings u/s 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) and also sustaining the addition of Rs.8,59,907/- made by the Assessing Officer u/s 40(a)(ia) and Rs.6,62,480/- u/s 36(1)(viia) of the Act. 2 ITA No.194/PUN/2025 3. Facts of the case in brief, are that the assessee is a co-operative society engaged in business of banking. It filed its return of income on 13.09.2012 declaring total income of Rs.4,51,70,496/-. The case was selected for complete scrutiny and an order u/s 143(3) of the Act was passed on 27.01.2015 assessing the total income at Rs.4,89,94,850/-. Subsequently, the assessment was reopened u/s 147 of the Act by issuing notice u/s 148 of the Act dated 22.03.2019 on the ground that there is violation of provisions of section 40(a)(ia) of the Act for non deduction of tax u/s 194A from the interest paid to non-members and Rs.6,62,480/- on account of less provision u/s 36(1)(viia) of the Act. The Assessing Officer accordingly completed the assessment determining the total income of the assessee at Rs.4,66,92,890/-. 4. The assessee filed an appeal before the Ld. Addl. / JCIT(A). However, despite four opportunities granted, there was non-compliance from the side of the assessee for which the Ld. Addl. / JCIT(A) relying on various decisions including the decision of the Hon'ble Supreme Court in the case of CIT vs. B.N. Bhattacharya reported in 118 ITR 461 (SC), dismissed the appeal for want of prosecution. 5. Aggrieved with such order of the Ld. Addl. / JCIT(A), the assessee is in appeal before the Tribunal. 6. The Ld. Counsel for the assessee submitted that the order has been passed by the Ld. Addl. / JCIT(A) due to non-prosecution and he has not decided the appeal 3 ITA No.194/PUN/2025 on merit. He submitted that due to non-communication of the notices by the earlier Counsel, the bank could not make any submission before the Ld. Addl. / JCIT(A). He submitted that in the interest of justice, the assessee should be given an opportunity to substantiate its case by filing the requisite details before the Ld. Addl. / JCIT(A). 7. The Ld. DR on the other hand referring to the order of the Ld. Addl. / JCIT(A) submitted that the assessee was given as many as four opportunities and therefore, it cannot be said that the assessee was not given due opportunity. Further, the Ld. Addl. / JCIT(A) in absence of any material before him has dismissed the appeal filed by the assessee. Therefore, the same should be upheld. 8. We have heard the rival arguments made by both the sides and perused the orders of the Assessing Officer and Ld. Addl. / JCIT(A). It is an admitted fact that due to non submission of the details on the appointed date, the Ld. Addl. / JCIT(A) dismissed the appeal for want of prosecution. It is the submission of the Ld. Counsel for the assessee that due to non-communication of the notices issued by the office of the Ld. Addl. / JCIT(A) by the previous consultant, all these unfortunate events happened. It is also his submission that given an opportunity, the assessee is in a position to substantiate its case by filing the requisite details before the Ld. Addl. / JCIT(A). Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. Addl. / JCIT(A) with a direction to grant one final opportunity to the assessee to 4 ITA No.194/PUN/2025 substantiate its case by filing the requisite details and decide the issue as per fact and law. The assessee is also hereby directed to make its submissions, if any, before the Ld. Addl. / JCIT(A) on the appointed date without seeking any adjournment under any pretext, failing which the Ld. Addl. / JCIT(A) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. 9. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court at the time of hearing itself i.e. on 24th March, 2025. Sd/- Sd/- (VINAY BHAMORE) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 24th March, 2025 GCVSR आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. 4. The concerned Pr.CIT, Pune DR, ITAT, ‘B’ Bench, Pune 5. गार्ड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune 5 ITA No.194/PUN/2025 S.No. Details Date Initials Designation 1 Draft dictated on 24.03.2025 Sr. PS/PS 2 Draft placed before author 24.03.2025 Sr. PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member AM/AM 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order "