THE CHENNAI GOV & GOV UNDERTAKINGS EMP COOP SOCIETY LIMITED NO. 980 ,CHENNAI V. THE ASSESSING OFFICER, NON CORP WARD 9(1) CHE/, CHENNAI

ITA 116/CHNY/2025

AI Insights

The case involves The Chennai Gov & GOV Undertakings EmP Coop Society Limited, which appealed against the order of the Learned Commissioner of Income Tax (Appeal), NFAC, Delhi, for the Assessment Year 2021-22. The primary contention was regarding the non-allowance of deductions based on tentative financial statements and an addition made to the income due to a reduction in share capital. The AO's assessment was challenged due to procedural non-compliance and lack of representation at the CIT(A) level. The tribunal found merit in providing another opportunity for the assessee to present its case, leading to the setting aside of the appeal to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711636 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BIPIN C.N
• Assessee Lawyers: M.KARUNANANDHAM
• Keywords: Set aside; Application of stay
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अधिकरण, ‘सी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI माननीय श्री मनु क ुमार गिरि, न्यागयक सदस्य एवं माननीय श्री एस.आर.रघुनाथा ,लेखा सदस्य क े समक्ष । BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI S. R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.116/Chny/2025, ननिाारण वर्ा/Assessment Year: 2021-22 SA No.14/Chny/2025, Assessment Year : 2021-22 The Chennai Gov & GOV Undertakings EmP Coop Society Limited No.980, No.121, Big Street, Tiruvallikeni, Chennai-600 005. v. The Income Tax Officer, Non-Corp Ward-9(1), Chennai. [PAN: AAKAT5194P] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Appellant by : Mr.M.Karunanandham, Advocate प्रत्यर्थी की ओर से /Respondent by : Mr.Bipin C.N, CIT सुनवाईकीतारीख/Date of Hearing : 22.07.2025 घोर्णाकीतारीख /Date of Pronouncement : 23.07.2025 आदेश / O R D E R PER MANU KUMAR GIRI, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeal), NFAC, Delhi (hereinafter in short ‘the Ld.CIT(A)’), dated 14.03.2024 for the Assessment Year (hereinafter in short ‘AY’) 2021-22. 2. At the outset, it is noted that the appeal has been filed after delay of ‘231’ days and the assessee has filed an affidavit explaining the delay. Having gone Printed from counselvise.com ITA No.116/Chny/2025 & SA/Chny/2025 (AY 2021-22) The Chennai Gov & GOV Undertakings Emp Coop Society Limited :: 2 :: through the contents of the affidavit, we are satisfied that there is sufficient cause for the delay. Therefore, we condone the delay of ‘231’ days and proceed to adjudicate the grounds of appeal raised by the assessee. 3. The brief facts of the case are that : The appellant is a credit co-operative society engaged in the business of providing credit facilities to its members and Interest/Dividend from Investment in other co-operative society as per the information available on records. The appellant has filed the return of income on for A.Y.2021-22 on 15.02.2022 offering a gross total income of Rs.5,59,00,982/- and total income of Rs. Nil after claiming deduction of Rs.5,59,00,982/- under section 80P of the Income Tax Act, 1961. Subsequently, the AO passed assessment order u/s 143(3)r.w.s. 144B of Income Tax Act, 1961 dated 21/12/2022. The assessing officer held that since the Audit report was not filled as per the provisions of the income tax deductions based on tentative financials statements cannot be allowed apart from this Assessing Officer also made the addition of Rs. 8,90,59,482/- which was the reduction in the share capital from the previous year based on the tentative financials at the time of fling the return of income. Thereby by making total income of Rs. 14,49,60,464/-. The assessee challenged the order of the AO passed u/s 143(3) r.w.s 144B dated 21.12.2022 before the CIT(A). 4. The ld. CIT(A) has given 4 hearing notices to the assessee but no response from the assessee. Hence, ld. CIT(A) proceeded with appeal hearings based upon the documents on record, confirmed the order of AO Printed from counselvise.com ITA No.116/Chny/2025 & SA/Chny/2025 (AY 2021-22) The Chennai Gov & GOV Undertakings Emp Coop Society Limited :: 3 :: and dismissed the appeal of the assessee on merits as well as non- compliance. Now, assessee is in further appeal before us. 5. The Ld. Authorized Representative (A.R) of the assessee has submitted the assessee inadvertently not received the hearing notices issued by the Ld. CIT(A). He further submitted that during the assessment proceedings full information was not submitted. Therefore, he prayed for one more opportunity to substantiate its case before Ld. CIT(A) or AO. 6. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of the Ld. CIT(A) and pleaded for the dismissal of the assessee’s appeal. 7. We have heard the rival submissions and perused the record. We note that during the assessment proceedings full compliance has not been made by the assessee to the queries raised by the AO. We also find that there was no appearance or representation of assessee before the ld.CIT(A). Hence, in the light of aforesaid factual position and in the interest of substantial justice, we deem it fit to set aside this appeal to the file of ld.AO for denovo adjudication subject to cost of Rs.25,000/- which shall be deposited by the assessee within 30 days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same Printed from counselvise.com ITA No.116/Chny/2025 & SA/Chny/2025 (AY 2021-22) The Chennai Gov & GOV Undertakings Emp Coop Society Limited :: 4 :: will be furnished by the Assessee before Ld.AO whose shall proceed for denovo assessment after providing proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith without any fail, failing which Ld.AO shall be at liberty to proceed with the assessment proceedings as per law. The ld. counsel has also assured this Bench that he will submit the particulars of the assessee viz; email id, address and mobile number of the assessee on record. He further, assured that the assessee will appear and co-operate before the revenue authorities. 8. In result, the appeal filed by the assessee stand allowed for statistical purposes. 9. SA 14/Chny/2025: Since, we have set aside the appeal in ITA No.116/Chny/2025 to the file of AO for denovo assessment, hence the stay application SA 14/Chny/2025 is become infructuous. Order pronounced on the 23rd day of July, 2025, in Chennai. Sd/- (एस.आर.रघुनाथा) (S. R. RAGHUNATHA) लेखा सदस्य/ACCOUNTANT MEMBER Sd/- (मनु क ुमाि गिरि) (MANU KUMAR GIRI) न्यानयक सदस्य/JUDICIAL MEMBER चेन्नई/Chennai, ददनांक/Dated: 23rd July, 2025. KB/- 1. अपीलार्थी/Appellant Printed from counselvise.com ITA No.116/Chny/2025 & SA/Chny/2025 (AY 2021-22) The Chennai Gov & GOV Undertakings Emp Coop Society Limited :: 5 :: 2. प्रत्यर्थी/Respondent 3. आयकरआयुक्त/CIT, Chennai / Madurai / Salem / Coimbatore. 4. विभागीयप्रविविवि/DR 5. गार्डफाईल/GF Printed from counselvise.com "