THE SANJARI CO. OP. CREDIT SOCIETY LTD.,MEHSANA V. THE INCOME TAX OFFICER,WARD-1, MEHSANA

ITA 1415/AHD/2024

AI Insights

The case involves The Sanjari Co-op. Credit Society Ltd., the appellant, contesting the disallowance of deductions under sections 80P(2)(a)(i) and 80P(2)(d) of the Income Tax Act, 1961, for the Assessment Year 2018-19. The deductions were initially disallowed by the Commissioner of Income Tax (Appeals) / National Faceless Appeal Centre, Delhi, invoking section 80A(5). The appellant argued that the profits derived from providing facilities to its members and interest earned from banks were wrongly disallowed. The tribunal, considering the appellant's inability to present before the revenue authorities due to lack of staff and technical expertise, decided to remand the matter back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708531 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B.P MAKWANA
• Assessee Lawyers: S.N DIVETIA
• Keywords: Principle of natural justice

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER ITA No.1415/Ahd/2024 (Assessment Year: 2018-19) The Sanjari Co-op. Credit Society Ltd., Opp. Primary Taluka School, District Bank Road, Haidri Chowk, Mehsana-384001. [PAN :AABTT3003 H] Vs. Income Tax Officer, Ward-1, Mehsana. (Appellant) .. (Respondent) Appellant by : Shri S.N Divetia, with Shri Samir Vora, ARs Respondent by: Shri B.P Makwana, Sr. DR Date of Hearing 17.07.2025 Date of Pronouncement 18.07.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal is filed by the Assessee against the appellate order dated 27.06.2024 passed by the Commissioner of Income Tax (Appeals) /National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2018-19. 2. The assessee has raised the following grounds of appeals: 1.1 The order passed by U/s.250 passed on 27-06-2024 by NFAC CIT(A)]. Delhi (for short \"CIT(A)\" upholding the disallowance of ITA No. 1415/Ahd/2024 Sanjari Co-op Credit Soc. Ltd. Vs. ITO Asst. Year : 2018-19 - 2– deduction u/s 80P(2)(a)(i) and 80P(2)(d) by invoking sec.80A(5) is wholly illegal, unlawful and against the principles of natural justice. 2.1 The Id. CIT(A), has grievously erred in law and or on facts in holding that the profit derived from the business of providing facility to its members by the appellant society of Rs. 10,26,553/- was not admissible for deduction u/s 80P(2)(a)(i). 2.2 That in the facts and circumstances of the case the Id.CIT(A) ought not to have upheld the disallowance of deduction of Rs.1,40,710/ in respect of interest earned from bank u/s 80P(2)(d). 3.1 The Id.CIT(A) has grievously erred in law and or on facts in upholding that the deduction u/s 80P(2)(a)(i) and 80P(2)(d) were not admissible in view of sec.80A(5). 3.2 That the in the facts and circumstances of the Id. CIT(A), ought not to have upheld the disallowance of deduction u/s 80P(2)(a)(i) and 80P(2)(d) by invoking sec.80A(5). It is, therefore, prayed that the disallowance of deduction u/s 80P(2) of Rs. 11,67,263/- upheld by the CIT(A) may kindly be deleted. 3. At the outset, the Ld. Counsel for the assessee submitted that assessee could not appear before the revenue authorities owing to the absence of staff and lack of technical expertise. The Ld. Counsel for the assessee prayed that, given an opportunity, due compliance will be made and all the details/clarification/explanation would be provided to the revenue authorities. Hence, in the interest of justice the matter is remanded to the Assessing Officer for conducting assessment de-novo. The assessee shall submit all the relevant submissions/documents before the Assessing Officer and comply with the notices issued by the revenue authorities without seeking any unnecessary adjournments. ITA No. 1415/Ahd/2024 Sanjari Co-op Credit Soc. Ltd. Vs. ITO Asst. Year : 2018-19 - 3– 4. In the result, the appeal filed by the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 18.07.2025 Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 18.07.2025 MV आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad "