CHENNIANGIRIVALASU PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY LIMTED,PERUNDURAI vs. ITO, WARD 2(2), ERODE, ERODE

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ITA 281/CHNY/2023Status: DisposedITAT Chennai24 April 2023AY 2011-122 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the issue back to the CIT(A) for de novo adjudication. The assessee was directed to provide the requisite details to substantiate its claim for deduction.

What were the facts?

The assessee claimed exemption for interest income earned from members under Section 80P(2)(a). The Assessing Officer denied the exemption for lack of details regarding the members from whom interest was received. The CIT(A) confirmed this addition.

What were the issues?

Whether the assessee is eligible for exemption under Section 80P(2)(a) for interest income earned from members, and if so, whether the denial of exemption due to lack of details was justified.

Which sections of the Income-tax Act were involved?

Section 80P(2)(a),Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI MANOMOHAN DAS

आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2011-12 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 31-01-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.143(3) r.w.s. 147 of the Act on 28-11-2019. At the time of hearing, none appeared for assessee. Accordingly, the appeal is being disposed-off with the able assistance of Ld. Sr. DR who has supported the findings rendered in impugned order.

1.

2 - 2. The assessee earned interest from members for Rs.1.83 Lacs and claimed the same to be exempt u/s 80P(2)(a). The Ld. AO denied the same since the assessee failed to produce the details of members from whom interest was received. The situation remained the same before Ld. CIT(A) which led to confirmation of addition. Aggrieved, the assessee is in further appeal before us.

3.

We find that the impugned deduction has been denied to the assessee for want of requisite details. If these details are provided by the assessee, it would be eligible to claim the impugned deduction otherwise not. Therefore, keeping in mind the principle of natural justice, we deem it fit to provide another opportunity to assessee to substantiate its stand. Therefore, this issue is restored back to the file of Ld. CIT(A) for de novo adjudication with a direction to the assessee to file requisite details.

4.

The appeal stand allowed for statistical purposes. Order pronounced in the open Court on 24th April, 2023.

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