V P G K S SANGHA LTD,HONNAVAR V. INCOME TAX OFFICER, WARD - 2, KARWAR

ITA 107/PAN/2024

AI Insights

The case involves V P G K S Sangha Ltd., a cooperative society, which filed an appeal against the order of the Income Tax Officer (ITO) concerning the disallowance of a deduction under section 80P(2)(d) of the Income Tax Act, 1961. The society had declared a taxable income of nil after claiming a deduction of Rs. 86,44,421 in its return filed on 31/03/2018 for the assessment year 2017-18. The ITO's scrutiny led to the disallowance of the deduction, which was upheld by the NFAC. The society's appeal to the First Appellate Authority was dismissed ex parte due to non-prosecution. The tribunal found that the society was prevented from effectively prosecuting its appeal due to sufficient cause and thus remitted the case back to the NFAC for a fresh decision.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 474823 (ITAT-PANAJI)
• Duration Of Justice: 7 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Next Hearing Date: 28-11-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 26-04-2024
• Other Referred Cases: Citizen Cooperative Society vs. ITO, CIT vs. B.N. Bhattarcharjee and Another
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: ASHWINIHOSMANI LD.
• Assessee Lawyers: SANDEEP CHALAPATHY
• Keywords: Corroborative evidences

Judgement Text

" IN THE INCOME TAX APPELLATE BEFORE HON’BLE SHRI PAVAN KUMAR GADALE, SHRI G. D. PADMAHSHALI V P G K S Sangha Ltd., Kelaginoor, KasarkodHonavar, Uttar Kannada -58 1 334 Karnataka PAN:AABAK2633B Income Tax Officer, Ward-2, First Floor, SanteriKrupa, Kaiga Road, Habbuwada, Karwar Uttara Kannada 581 301 Assesseeby:Mr Sandeep Chalapathy Revenue by Date of conclusive Hearing: Date of Pronouncement : PER G. D. PADMAHSHALI The present appeal is filed by the assessee No. ITBA/NFAC/S/250/2023 passed u/s.250 of the Income the National Faceless Appeal Centre [for short ‘NFAC’] has arisen out of order of assessment passed u/s.143(3) by the ITO, IN THE INCOME TAX APPELLATE TRIBUNAL, PANAJI BENCH, PANAJI PAVAN KUMAR GADALE, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI,ACCOUNTANT MEMBER ITA No. 107/PAN/2024 Assessment Year :2017-18 KasarkodHonavar, .......Appellant V/s ....... Respondent Appearances Chalapathy[‘Ld. AR’] Revenue by :Dr.AshwiniHosmani [‘Ld. DR’] Date of conclusive Hearing:28/11/2024 Date of Pronouncement :02/12/2024 ORDER G. D. PADMAHSHALI, AM; is filed by the assessee against the DIN & Order ITBA/NFAC/S/250/2023-24/1061590662(1) dt.27/02/2024 of the Income-tax Act, 1961 [for short ‘the Act the National Faceless Appeal Centre [for short ‘NFAC’] which has arisen out of order of assessment passed u/s.143(3) by the ITO, TRIBUNAL, PANAJI BENCH, PANAJI JUDICIAL MEMBER ACCOUNTANT MEMBER against the DIN & Order 27/02/2024 the Act’] by which inturn has arisen out of order of assessment passed u/s.143(3) by the ITO, Ward-1, Karwar[ for short ‘AO’], [for short ‘AY’] 2. Briefly stated, the facts of the case are that Cooperative Society filed its return on 31/03/2018 declaring taxable income Nil after a claim of deduction u/s.80P(2) for sum of Rs.86,44,421. The case of the assessee was subjected to scrutiny by issue of notice u/s.143(2) dated 11/08/2 responses was considered in relation to claim of and 80P(2)(c) and following the judgment of Cooperative Society VS. ITO of the assessee for80P(2) was framed accordingly. 3. Aggrieved assessee instituted an appeal before the First Appellate Authority [for short dismissedexparte for non 4. Further aggrieved, the assessee filed the present a challenging the impugned o disallowance of 80P(2)(d) deduction v Appeal Memo. V P G K S Sangha Ltd. Vs. ITO [ for short ‘AO’], anent to assessment year 2017 Briefly stated, the facts of the case are that; the assessee is a Cooperative Society filed its return on 31/03/2018 declaring taxable income Nil after a claim of deduction u/s.80P(2) for sum of 86,44,421. The case of the assessee was subjected to scrutiny by issue of notice u/s.143(2) dated 11/08/2018. The assesse’s responses was considered in relation to claim of section 80P(2)(d) following the judgment of M/s. Citizen Cooperative Society VS. ITO [reported in 2017, 397 ITR 1 80P(2) deduction was denied and the assessment was framed accordingly. Aggrieved assessee instituted an appeal before the First Appellate Authority [for short ‘FAA’] which came to be for non-prosecution. Further aggrieved, the assessee filed the present a challenging the impugned order with sole and substantive disallowance of 80P(2)(d) deduction vide five grounds raised in V P G K S Sangha Ltd. Vs. ITO ITA No.107/PAN/2024 anent to assessment year 2017-18 the assessee is a Cooperative Society filed its return on 31/03/2018 declaring taxable income Nil after a claim of deduction u/s.80P(2) for sum of 86,44,421. The case of the assessee was subjected to scrutiny by 018. The assesse’s section 80P(2)(d) M/s. Citizen reported in 2017, 397 ITR 1] the claim was denied and the assessment Aggrieved assessee instituted an appeal before the First ] which came to be Further aggrieved, the assessee filed the present appeal rder with sole and substantive issue of ide five grounds raised in 5. We have heard the rival parties and Rules 1963 perused the note that during the course of First Appellate Proceedings Ld.NFAC issued five separate notices calling upon the assessee to furnish relevant documents claim with corroborative evidences. Th responded by the appellant was constrained to proceed of material already brought on record applying the ratio laid down in the case of CIT Vs. B.N. B 10 CTR 354. 6. The reasons behind non explained in detail during the course of Considering the same, we are of the view that the assessee sufficient cause prevented from prosecuting the appeal effectively, therefore deserves to be given one more opportunity to case on merits through Video Conferencing. The Revenue could hardly object the prayer of the a commenting on merits, we set challenge and remit back to the file of Ld. NFAC institution with a direction to adjudicate V P G K S Sangha Ltd. Vs. ITO We have heard the rival parties and subject to rule 18 of ITAT the material placed on record. At the outset, we te that during the course of First Appellate Proceedings d.NFAC issued five separate notices calling upon the assessee to furnish relevant documents, written submission and explain claim with corroborative evidences. These notices were neither appellant nor replied. In the event, the L was constrained to proceed exparte and pass the order in the evince of material already brought on record applying the ratio laid down CIT Vs. B.N. Bhattarcharjee and Another reported in The reasons behind non-prosecution before the FAA has been explained in detail during the course of present Considering the same, we are of the view that the assessee sufficient cause prevented from prosecuting the appeal effectively, deserves to be given one more opportunity to case on merits through Video Conferencing. The Revenue could hardly object the prayer of the appellant. In view thereo commenting on merits, we set-aside the impugned order and remit back to the file of Ld. NFACto the stage of its with a direction to adjudicate the subject matter V P G K S Sangha Ltd. Vs. ITO ITA No.107/PAN/2024 subject to rule 18 of ITAT- At the outset, we te that during the course of First Appellate Proceedings, the d.NFAC issued five separate notices calling upon the assessee to written submission and explain its ese notices were neither the event, the Ld. NFAC and pass the order in the evince of material already brought on record applying the ratio laid down hattarcharjee and Another reported in prosecution before the FAA has been present hearing. Considering the same, we are of the view that the assessee was for sufficient cause prevented from prosecuting the appeal effectively, deserves to be given one more opportunity to prove its case on merits through Video Conferencing. The Revenue could of, without impugned order under to the stage of its subject matter de- novoin accordance with law after providing three eff opportunities and pass a speaking order. 7. In result, the appeal In terms of rule 34 of ITAT Rules, the order pronounced in the open court on this Sd/- PAVAN KUMAR GADALE JUDICIAL MEMBER Satish Copy of the Order forwarded to : 1. The Appellant. 2. The Respondent. 4. PCIT Concerned 5. DR, ITAT, Panaji Bench, Panaji //True Copy // V P G K S Sangha Ltd. Vs. ITO in accordance with law after providing three eff opportunities and pass a speaking order. appeal is allowed for statistical purposes. In terms of rule 34 of ITAT Rules, the order pronounced in the open court on this 02nd day of December, 2024 Sd/- PAVAN KUMAR GADALE G. D. PADMAHSHALI ACCOUNTANT MEMBER Copy of the Order forwarded to : 2. The Respondent. 3. The CIT(A)/NFAC Concerned DR, ITAT, Panaji Bench, Panaji 6. Guard File Sr. Private Secretary / AR V P G K S Sangha Ltd. Vs. ITO ITA No.107/PAN/2024 in accordance with law after providing three effective allowed for statistical purposes. , 2024. G. D. PADMAHSHALI ACCOUNTANT MEMBER CIT(A)/NFAC Concerned By Order, / AR ITAT, Panaji. "