THE PAYAKARAOPETA WOMENS MUTUALLY AIDED CO OP THRIFT CREDIT SOCIETY LIMITED,PAYAKARAOPETA V. ACIT, CIRCLE-5(1), VISAKHAPATNAM

ITA 371/VIZ/2025

AI Insights

The case involves The Payakaraopeta Women’s Mutually Aided Coop Thrift & Credit Society Limited, which appealed against the order of the Learned Addl/Joint Commissioner of Income Tax (Appeals), Kochi. The dispute arose from the disallowance of deductions claimed under Section 80P of the Income Tax Act, 1961, related to interest earned on various deposits and loans. Initially, the assessee's appeal was dismissed ex-parte by the CIT(A) due to non-compliance in attending hearings or submitting details. The Tribunal had previously set aside the CIT(A)'s order and remitted the matter back for a fresh decision, which again resulted in an ex-parte order due to the assessee's non-compliance. The Tribunal, considering the circumstances, decided to provide one final opportunity to the assessee by remitting the matter back to the CIT(A).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 776338 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2025
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 02-06-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 143(3); 142(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM ᮰ी एस बालाकृ᭬णन, माननीय लेखा सद᭭य एवं ᮰ी संदीप ᳲसह करहेल, माननीय ᭠याियक सद᭭य SHRI S BALAKRISHNAN HON’BLE ACCOUNTANT MEMBER AND SHRI SANDEEP SINGH KARHAIL, HON’BLE JUDICIAL MEMBER आयकरअपीलसं./I.T.A. No.371/Viz/2025 (िनधाŊरणवषŊ/ Assessment Year: 2010-11) The Payakaraopeta Women’s Mutually Aided Coop Thrift & Credit Society Limited, Plot No. 3 & 4, Siva Surya Apartments, Ground Floor, Main Road, Payakaraopeta- 531126, Andhra Pradesh. PAN: AABAT2503M VS. ACIT, Circle-5(1), Visakhapatnam. (अपीलाथŎ/ Appellant) (ŮȑथŎ/ Respondent) करदाताकाŮितिनिधȕ/ Assessee Represented by : Sri C. Subrahmanyam, CA राजˢकाŮितिनिधȕ/ Department Represented by : Dr. Aparna Villuri, Sr. AR सुनवाईसमाɑहोनेकीितिथ/ Date of Conclusion of Hearing : 16/09/2025 घोषणा की तारीख/ Date of Pronouncement : 18/09/2025 ORDER PER S BALAKRISHNAN, AM: This appeal is filed by the assessee against the order of the Learned Addl / Joint Commissioner of Income Tax (Appeals), Kochi (in short “Ld. CIT(A)”) in DIN & Order No. ITBA/APL/S/250/2024- 25/1074966264(1), dated 24/03/2025 arising out of the order passed Printed from counselvise.com 2 ITA No. 371/Viz/2025 The Payakaraopeta Women’s Mutually Aided Coop Thrift & Credit Society Limited vs. ACIT U/s. 143(3) of the Income Tax Act, 1961 (in short “the Act”), dated 22/11/2012 for the Asst. Year 2010-11. 2. At the outset, it is noticed from the record that there is a delay of 02 (two) days in filing the appeal before the Tribunal. In respect of belated filing of the appeal, the Ld. Authorized Representative filed a petition along with an affidavit stating that due to inadvertent oversight in tracking the date, the appeal before the Tribunal was filed belatedly on 02nd June, 2025 instead of 31st May, 2025 resulting in a delay of 02 days. It was further submitted that the delay is neither intentional nor deliberate but solely due to human error and therefore pleaded that the delay of 02 days may be condoned and the appeal may be admitted for adjudication on merits. On perusal of the reasons advanced by the Ld. AR for belated filing of the appeal, we find that it is a fit case to condone the delay. Accordingly, we hereby condone the delay of 02 days in filing the appeal before the Tribunal and proceed to adjudicate case. 3. Brief facts of the case are that the assessee a cooperative society registered under Andhra Pradesh Mutually Aided Cooperative Societies Act, 1965. The assessee filed its return of income for the AY 2010-11 on 28/09/2010 declaring NIL income after claiming entire income of Rs. 47,94,183/- as deduction U/s. 80P of the Act. The case of the Printed from counselvise.com 3 ITA No. 371/Viz/2025 The Payakaraopeta Women’s Mutually Aided Coop Thrift & Credit Society Limited vs. ACIT assessee was selected for scrutiny under CASS and notices U/s. 143(2) and 142(1) of the Act were issued on 30/08/2021 and duly served on the assessee. In response, the Authorized Representative of the assessee appeared before the Ld. AO and furnished the details as called for. However, the Ld. AO did not consider the submissions of the assessee and disallowed the deduction claimed U/s. 80P towards interest on Fixed Deposits of Rs. 22,15,164/-; interest on Bank Balance of Rs. 6,20,450/- and interest on loan given to staff of Rs. 5,35,735/-. Thus, the Ld. AO passed the order U/s. 143(3) of the Act dated 22/11/2012. Aggrieved, the assessee carried the matter in appeal before the Ld. CIT(A). However, before the Ld. CIT(A) the assessee has neither appeared nor filed any details in support of the claim. Therefore, the Ld. CIT(A) upheld the decision of the Ld. AO and dismissed the appeal of the assessee ex-parte. Thereafter, the assessee filed an appeal before the Tribunal and the Tribunal vide its order in ITA No. 127/Viz/2017, dated 09/10/2017 has set-aside the order of the Ld. CIT(A) and remitted the matter back to the file of the Ld. CIT(A) with a direction to decide the appeal afresh after affording an opportunity of being heard to the assessee. Adhering to the directions of the Hon’ble Tribunal, the Ld. CIT(A) issued notices U/s. 250 of the Act on various occasions, however, there was no compliance on behalf of the assessee to the hearing notices issued by the Ld. CIT(A). Printed from counselvise.com 4 ITA No. 371/Viz/2025 The Payakaraopeta Women’s Mutually Aided Coop Thrift & Credit Society Limited vs. ACIT Therefore, the Ld. CIT(A) dismissed the appeal of the assessee and passed ex-parte order dated 24/03/2025. Against the order of the Ld. CIT(A), the assessee is in appeal before the Tribunal by raising the following grounds of appeal: “1. That under the facts and circumstances of the case the order passed U/s. 250 r.w.s 254 of the Act dated 24/03/2025 by Addl/JCIT(A), Kochi is contrary to the facts of the case and provisions of law. 2. The Ld. Addl/JCIT(A), Kochi failed to given reasonable opportunity to represent the case before him, thus violated the principles of natural justice. 3. The ex-parte disposal of the appeal by the Ld. Addl / JCIT(A), Kochi contravenes the provisions of section 250(6) of the Act which mandates that the appeal be adjudicated on its merits with due consideration of the facts and submissions presented. 4. The Ld. Add/JCIT(A), Kochi ought to have known that the AO has wrongly disallowed deduction pertaining to interest earned and it is a settled law that such interest is eligible for deduction U/s. 80P(2)(d) of the Act, therefore, any adverse view on this cannot stand the test of the scrutiny. 5. The Ld. Addl/JCIT(A), Kochi ought to have known that the AO without considering the relevant facts and provisions of law disallowed deduction U/s. 80P(2)(d) of the Act which is not correct. 6. For these reasons that are to be urged at the time of hearing of the case the appellant prays that orders passed U/s. 250 r.w.s 254 of the Act are contrary to the facts of the case and provisions of law, therefore, the same needs to be set aside in the interest of justice.” 4. At the outset, the Ld. AR submitted before us that the Ld. CIT (A) has passed ex-parte order without providing proper opportunity to the assessee of being heard. It was therefore pleaded that the matter may be remitted back to the file of the Ld CIT (A) in order to provide one final opportunity to the assessee of being heard. Printed from counselvise.com 5 ITA No. 371/Viz/2025 The Payakaraopeta Women’s Mutually Aided Coop Thrift & Credit Society Limited vs. ACIT 5. Ld. DR, on the other hand, strongly opposed to the assessee’s plea for remitting the matter back to the file of the Ld. CIT(A) because if it is remitted back it would be a third round of proceedings before the Ld. CIT(A) and there was no compliance to the hearing notices issued to the assessee in the first and second round of proceedings. 6. We have heard the rival submissions and carefully perused the materials on record. On examining the facts of the case, we find that the Ld. CIT (A) had posted the case on several occasions. However, none appeared on behalf of the assessee before the CIT(A) on the dates of hearing nor filed any details / written submissions with regard to the grounds raised before the Ld. CIT(A). Therefore, the Ld. CIT (A) was left with no other option except to adjudicate the appeal ex-parte. It is further observed that even in the second round of proceedings neither the assessee appeared nor filed any written submissions in support of the claim. Under these circumstances, considering the prayer of the Ld. AR for one final opportunity to the assessee before the Ld. CIT(A), in the interest of justice, we hereby remit the matter back to the file of Ld. CIT (A) in order to provide one final opportunity to the assessee to substantiate its claim. The Ld. CIT(A) is directed to adjudicate the matter within a period of 90 days from the date of passing of this order. At the same breath, we also hereby caution the assessee to promptly co-operate before the Ld. CIT (A) in the Printed from counselvise.com 6 ITA No. 371/Viz/2025 The Payakaraopeta Women’s Mutually Aided Coop Thrift & Credit Society Limited vs. ACIT proceedings failing which the Ld. CIT (A) shall be at liberty to pass appropriate order in accordance with law and on merits based on the materials on the record. It is ordered accordingly. 7. In the result, appeal filed by the assessee is allowed for statistical purposes as indicated hereinabove. Order pronounced in the open court on 18th September, 2025. S Sd/- (संदीप ᳲसह करहेल) (SANDEEP SINGH KARHAIL) Ɋाियकसद˟/JUDICIAL MEMBER Sd/-- (एस बालाकृ᭬णन) (S BALAKRISHNAN) लेखासद˟/ACCOUNTANT MEMBER Visakhapatnam, dated 18.09.2025. OKK/sps आदेशकीŮितिलिपअŤेिषत/ Copy of the order forwarded to:- 1. िनधाŊįरती/The Assessee : The Payakaraopeta Women’s Mutually Aided Coop Thrift & Credit Society Limited, Plot No. 3 & 4, Siva Surya Apartments, Ground Floor, Main Road, Payakaraopeta- 531126, Andhra Pradesh. 2. राजˢ/ The Revenue : ACIT, Circle-5(1), Visakhapatnam. 3. The Principal Commissioner of Income Tax, 4. िवभागीयŮितिनिध, आयकरअपीलीयअिधकरण /DR,ITAT, Visakhapatnam. 5. The Commissioner of Income Tax 6. गाडŊफ़ाईल / Guard file Printed from counselvise.com 7 ITA No. 371/Viz/2025 The Payakaraopeta Women’s Mutually Aided Coop Thrift & Credit Society Limited vs. ACIT आदेशानुसार / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam. Printed from counselvise.com "