THE ASHRAY CO-OPERATIVE CREDIT SOCIETY LTD,SADASHIVGAD, KARWAR V. ASSESSING OFFICER OF NATIONAL FACELESS ASSESSMENT CENTRE, DELHI

ITA 205/PAN/2024

AI Insights

The case involves The Ashray Co-operative Credit Society Limited, which appealed against the orders of the National Faceless Assessment Centre (NFAC), Delhi, concerning the denial of deductions under sections 80P(2)(a)(i) and 80P(2)(d) of the Income Tax Act for various assessment years. The Tribunal noted a delay in filing the appeals, which was condoned. The primary issue was the denial of deductions on interest income from non-members and other income, which the Assessing Officer (A.O) initially allowed but later retracted upon receiving new information. The CIT(A) dismissed the appeal ex-parte due to non-compliance by the assessee in attending hearings. The Tribunal, emphasizing the principles of natural justice, decided to provide another opportunity for the assessee to present its case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 37878 (ITAT-PANAJI)
• Duration Of Justice: 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Next Hearing Date: 28-11-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 17-08-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: .ASHWINI HOSMANI.
• Keywords: Set aside; Principle of natural justice; Reason to believe; Co-operative Credit Society
• Section: 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. 202,203,204 & 205/PAN/2024 (A.Y.2014-15, 2017-18, 2018-19 & 2020-21) The Ashray Co-operative Credit Society Limited, Desaiwada, Kadra Road, Sadashvivgad,Karwar-581352, Uttara Kannada, Karnataka. Vs . National Face Less Assessment Centre, NFAC, Delhi. . PAN/GIR No. AAAAT7877P (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Assessee by None(Letter dated 25-11-2024) Revenue by Smt.Dr.Ashwini Hosmani.Sr.DR सुनवाई कȧ तारȣख/Date of Hearing 28.11.2024 घोषणा कȧ तारȣख/Date of Pronouncement 29.11.2024 ORDER PER PAVAN KUMAR GADALE ,JM: These four appeals are filed by the assessee against the separate orders of the National Faceless Appeal Centre (NFAC), Delhi / (CIT(A) passed u/sec 250 of the Act. 2. At the time of hearing, it was brought to the knowledge of the bench, that there is a delay of 14 days in filing the appeals before the Hon’ble Tribunal and the assesse has filed the applications for condonation of delay. Whereas, the facts mentioned are reasonable and the Ld. DR has 2 ITA. No.202,203,204&205/PAN/2024 The Ashray Co-operative Credit Society Limited.Sadashivgad. no specific objections. Accordingly, we condone the delay and admit the appeals. 3. Since issues involved in these appeals are common and identical, hence they are clubbed, heard and a consolidated order is passed. For the sake of convenience, we shall take up ITA No.202/PAN/2024, A.Y 2014-15 as lead case and facts narrated. 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)(a)(i) & deduction under section 80P(2)(d) of the Act. 4.The brief facts of the case are that, the assessee is a cooperative credit society and has filed the return of income for the A.Y 2014-15 on 27.10.2014 disclosing a total income of Rs. Nil after claiming deduction u/sec 80P of the Act and the assessment order u/sec143(3) of the Act was passed on 29-06-2016 with the assessed income Rs.Nil after allowing deduction under section 80P of the Act .Subsequently the Assessing Officer (A.O) has received information that the assessee society is not eligible for claim of deduction under section 80P of the Act and has reason to believe that the income has escaped assessment and has issued notice u/sec148 of the Act .Further A.O issued notice u/sec142(1) of the Act calling for details in respect of claims and the information supporting the return of income filed and the assesse has filed the details 3 ITA. No.202,203,204&205/PAN/2024 The Ashray Co-operative Credit Society Limited.Sadashivgad. on 18-03-2022. Whereas the A.O was not satisfied with the explanations and dealt on the provisions and judicial decisions and denied the claim of deduction(i) u/sec80P of the on the interest income received from non members of Rs.1,03,72,392/- and (ii) u/sec80P2(d) of the act of Rs.6,15,787/ and assessed the total income of Rs1,09,88,180/- and passed the order u/sec 147 r.w.s144B of the Act dated 28.03.2022. 5. 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 assesse has filed an appeal before the Hon'ble Tribunal. 6. 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 4 ITA. No.202,203,204&205/PAN/2024 The Ashray Co-operative Credit Society Limited.Sadashivgad. and dismissed the appeal ex-parte confirming the action of the assessing officer.The Ld. CIT(A) has issued the notices of hearing on 13-12-2022,12-10-2023,15-04-2024 &26-04- 2024 referred at page 5 of 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 for early disposal of appeal. And, we allow the grounds of appeal of the assessee for statistical purposes. 7. In the result, the appeal filed by assesse is allowed for statistical purposes. ITA No.203,204 & 205/PAN/2024 A.Ys. 2017-18, 2018- 19 & 2020-21. 8. As the facts and circumstances in these three appeals are identical to ITA No 202/PAN/2024 for the A.Y 2014-15 5 ITA. No.202,203,204&205/PAN/2024 The Ashray Co-operative Credit Society Limited.Sadashivgad. (except variance in figures) and the decision rendered in above paragraph 6&7 would apply mutatis mutandis for these appeals also. Accordingly, we allow the grounds of appeal of the assesse for statistical purposes. 9. In the result, the four appeals filed by the assessee are allowed for statistical purpose. Order pronounced in the open court on 29.11.2024. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 29/11/2024 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 6 ITA. No.202,203,204&205/PAN/2024 The Ashray Co-operative Credit Society Limited.Sadashivgad. 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 "