THE BEEKEEPERS CO-OPERATIVE SOCIETY LIMTIED ,SAKALESHAPURA V. INCOME TAX OFFICER, WARD-1 & TPS, , HASSAN

ITA 2040/BANG/2024

AI Insights

The case involves The Beekeepers Co-operative Society Ltd., which appealed against the disallowance of a deduction under section 10(23B) of the Income Tax Act, 1961, for the assessment year 2016-17. Initially, the return filed by the assessee was processed, and the deduction was disallowed. The CIT(A) restored the matter to the AO, which was later set aside by the ITAT, directing fresh proceedings. However, the AO passed an order during the pendency of these proceedings, which was again challenged by the assessee. The ITAT found that the subsequent proceedings were based on a non-est order and thus dismissed the appeal, allowing the assessee to approach the CIT(A) again.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 34153 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-12-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 03-12-2024
• Assessment Year: 2016-2017
• Appeal Filed On: 28-10-2024
• Other Referred Cases: ITA No 841/Bang/2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: GANESH R GHALE; STANDING COUNSEL
• Assessee Lawyers: PRANAV KRISHNA
• Keywords: Set aside
• Section: 143(1)

Judgement Text

"ITA No.2040/Bang/2024 The Beekeepers Co-operative Society Ltd., Hassan IN THE INCOME TAX APPELLATE TRIBUNAL “B’’ BENCH: BANGALORE BEFORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER AND SHRI PRAKASH CHAND YADAV, JUDICIAL MEMBER ITA No.2040/Bang/2024 Assessment Year: 2016-17 The Beekeepers Co-operative Society Ltd. Post Box No.2, S.P. Road Sakaleshapura 573 134 Hassan Karnataka 573 134 PAN NO : AAAAT1506F Vs. ITO Ward 1 & TPS Hassan APPELLANT RESPONDENT Appellant by : Sri Pranav Krishna, A.R. Respondent by : Sri Ganesh R Ghale, Standing Counsel for revenue. Date of Hearing : 03.12.2024 Date of Pronouncement : 05.12.2024 O R D E R PER PRAKASH CHAND YADAV, JUDICIAL MEMBER: Present appeal of the assessee is arising from the order of ld. CIT(A)/NFAC dated 23.8.2024 having DIN & Order No.ITBA/NFAC/S/250/2024-25/1067905148(1) for the assessment year 2016-17. 2. There is a delay of 6 days in filing of this present appeal. Ld. Counsel for the assessee appearing on behalf of the assessee has pointed out that because of the communication gap between the assessee and the professional who was handling the matter earlier, the inadvertent delay has occured. 3. Ld. D.R. could not seriously objected to the prayer of the assessee vis- à-vis condonation of delay. ITA No.2040/Bang/2024 The Beekeepers Co-operative Society Ltd., Hassan Page 2 of 4 4. Considering the smallness of the delay of 6 days, we hereby condone the same and proceed to decide the matter. 5. Brief facts of the case leading to the filing of present appeal are that the assessee is a Co-operative Society filed its return of income for the impugned year on 30.3.2018. The return of income filed by the assessee was processed u/s 143(1) of the Income Tax Act, 1961 (in short “The Act”), wherein the claim of deduction u/s 10(23B) of the Act, claimed by the assessee has been disallowed by the CPC. 6. Aggrieved with the order of CPC, assessee preferred an appeal before the ld. CIT(A), who vide its order dated 6.12.2021 allowed the appeal of the assessee by observing that the matter requires fresh consideration by the AO and hence, the ld. CIT(A) restored the matter to the file of AO. 7. Aggrieved with the order of ld. CIT(A) dated 6.12.2021, the assessee preferred appeal before the Hon’ble ITAT and the Hon’ble ITAT vide its order dated 7.12.2023 in ITA No 841/Bang/2022 held that the ld. CIT(A) has exceeded his jurisdiction by restoring the matter to the file of the AO for deciding afresh. Lastly the ITAT restored the matter to the file of CIT(A). 7.1. When the proceedings were pending before the ld. CIT(A), after the order of ITAT dated 7.2.2023, the ld. AO following the directions of the ld. CIT(A) dated 6.12.2021 has passed the impugned order dated 27.4.2022 and held that the assessee is not entitled for the deduction u/s 10(23B) of the Act. 7.2 Aggrieved of the order of the ld. AO, the assessee preferred appeal before the ld. CIT(A) who vide its order dated 23.8.2024, dismissed the appeal of the assessee upholding the disallowance of deduction made u/s 10(23B) of the Act to the assessee. 7.3 Now the assessee has come up in appeal before us and contended that the directions given by the Hon’ble ITAT vide its order dated 7.2.2023 are still pending and hence, the present proceedings are non-est proceedings, as the ITA No.2040/Bang/2024 The Beekeepers Co-operative Society Ltd., Hassan Page 3 of 4 same are initiated in response to an order of ld CIT(A), which order has already been set aside by the Hon’ble ITAT vide its order dated 7.2.2023. 8. Ld. D.R. relied upon the order of the authorities below and sequence of events as narrated by the counsel for the assessee. 9. After considering the rival submissions, we deem it appropriate to incorporate certain sequence of events, which goes to the root of the matter are as under: Date Nature of proceedings Remarks 29.03.2019 Return filed by the assessee was processed u/s 143(1) of the Act Deduction u/s 10(23B) of the Act was disallowed. 11.07.2019 Assessee preferred appeal before ld. CIT(A) against the order of CPC No remarks. Admitted fact. 06.12.2021 Ld. CIT(A) set aside the matter to the file of AO Admitted fact. 07.02.2023 Coordinate bench of the ITAT in ITA No.841/Bang/2022 set side the order of ld. CIT(A) and restored the matter to the file of ld. CIT(A). Fresh proceedings before ld. CIT(A) are still pending. 27.04.2022 The AO passed the impugned order Admitted fact 07.09.2022 Assessee filed appeal before the ld. CIT(A) against the order of AO Admitted fact 23.08.2024 Impugned order of ld. CIT(A) has been passed. Against this order now the assessee has comeup in appeal. 9.1 After bare perusal of the above sequence of events would show that the impugned order of the AO has been passed when the matter was sub-judice before the coordinate bench in ITA No.841/Bang/2022. We are of the view that the moment the order of CIT(A) in first round has been set aside all consequential proceedings in pursuance to such order become non-est/ void ab initio, since the directions of ITAT are yet to be complied by the first appellate authority. Therefore, we dismiss these present appeals which are emanating from non-est order. However, we make it clear that assessee would have full liberty to contest its appeal before the first appellate authority, which ITA No.2040/Bang/2024 The Beekeepers Co-operative Society Ltd., Hassan Page 4 of 4 pending as on today as intimated by the counsel for the assessee. The appeal is decided accordingly. 10. In the result, appeal of the assessee is dismissed as indicated above. Order pronounced in the open court on 5th Dec, 2024 Sd/- (Laxmi Prasad Sahu) Accountant Member Sd/- (Prakash Chand Yadav) Judicial Member Bangalore, Dated 5th Dec, 2024. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order Asst. Registrar, ITAT, Bangalore. "