PRIMARY CO-OPERATIVE AGRICULTURE & RURAL DEVELOPMENT ,SAGAR vs. INCOME TAX OFFICER, WARD-1 & TPS, , SHIMOGA

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ITA 2739/BANG/2025Status: DisposedITAT Bangalore07 July 2026AY 2021-223 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, in the interest of substantial justice, granted the assessee one last opportunity to furnish necessary documents to the CIT(A). The matter was remanded for fresh consideration.

What were the facts?

The assessee, a Co-operative Society, claimed a deduction under section 80P. The Assessing Officer added back interest and other income. The CIT(A) dismissed the assessee's appeal for non-response to notices.

What were the issues?

Whether the assessee should be granted a final opportunity to present its case before the CIT(A) after failing to respond to multiple notices.

Which sections of the Income-tax Act were involved?

Section 80P

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH : BANGALORE

Before: SHRI BALAKRISHNAN S & SHRI KESHAV DUBEY

For Appellant: Shri. Varun Bhat, CA
For Respondent: Shri. Pradeep S, Addl. CIT(DR)(ITAT), Bengaluru
Hearing: 23.06.2026Pronounced: 07.07.2026

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI BALAKRISHNAN S, ACCOUNTANT MEMBER AND SHRI KESHAV DUBEY, JUDICIAL MEMBER ITA No.2739/Bang/2025 Assessment Year : 2021-22 Primary Co-operative Agriculture and Rural Vs. ITO, Development, Ward 1 and TPS, Near Raghavendra Swamy Mutt Road, Shimoga. Agrahara, Sagar – 577 401. PAN : AAAAP 2556 R APPELLANT RESPONDENT Assessee by : Shri. Varun Bhat, CA Revenue by : Shri. Pradeep S, Addl. CIT(DR)(ITAT), Bengaluru. Date of hearing : 23.06.2026 Date of Pronouncement : 07.07.2026 O R D E R Per Balakrishnan S, Accountant Member :

This appeal is filed by the assessee against the order of learned Commissioner of Income Tax – Appeals (NFAC, Delhi) [in short “CIT(A)”] vide DIN & order No. ITBA/NFAC/S/250/2025-26/1080844582(1) dated 17.09.2025 for the Assessment Year 2021-22.

2.

Brief facts of the case are the assessee is a Co-operative Society, filed its return of income on 15.01.2021 admitting a total income of Rs.Nil, after claiming deduction under section 80P of the Act, amounting to Rs.53,53,351/-. Subsequently, the return of income filed by the assessee has been selected for complete scrutiny to examine the deduction under section 80P of the Act

ITA No.2739/Bang/2025 Page 2 of 3

claimed by the assessee. Thereafter, notices under section 143(2) and 142(1) of the Act and a show cause notice were issued and served on the assessee. The assessee partly responded to the notices. After examining the part submissions made by the assessee, the learned Assessing Officer [in short “AO”] noticed that assessee had interest income and other income which should be considered as income from other sources amounting to Rs.92,41,389/- and added to the total income of the assessee.

3.

On being aggrieved by the Order of the learned AO, assessee carried the matter before the learned CIT(A). The learned CIT(A) provided opportunities on 02.09.2023, 12.06.2025, 06.08.2025, 14.08.2025, 22.08.2025 seeking details from the assessee. The assessee never responded to any of the notices. Therefore, the learned CIT(A) dismissed the appeal of the assessee.

4.

On being aggrieved by the Order of the learned CIT(A), assessee is in appeal before us raising various grounds as detailed in Form 36. At the outset, the learned Authorized Representative [in short “AR”] stated that assessee could not appear before the learned CIT(A) to substantiate the grounds raised in the appeal which is not intentional or delibrate. He therefore prayed that one final opportunity may be provided to the assessee before the learned CIT(A) to furnish the details / documentary evidences supporting the grounds of appeal.

5.

Per contra, the learned Departmental Representative (in short "DR") strongly objected to remanding the matter back to CIT(A) since CIT(A) had provided multiple opportunities which were never complied by the assessee.

6.

We have heard the rival contentions and perused the material available on record. It is undisputed fact that the learned CIT(A) has offered various opportunities seeking the assessee to furnish the documents supporting its claim.

ITA No.2739/Bang/2025 Page 3 of 3

However, the assessee failed to respond to any of the notices issued by the learned CIT(A). Considering the prayer of AR, in the interest of substantial justice, we are of the opinion that, as prayed by the learned AR, one more last opportunity may be provided to the assessee to furnish the necessary documents as warranted by the learned CIT(A). Therefore, we remand the matter back to the file of learned CIT(A) for fresh consideration. At the same breath we also caution the assessee not to seek any unnecessary adjournments during the remand proceedings failing which the learned CIT(A) is at liberty to decide the case as per the material available on record. Thus, the grounds raised by the assessee are allowed for statistical purposes.

7.

In the result, appeal filed by the assessee is allowed for statistical purposes.

Pronounced in the open court on the date mentioned on the caption page.

Sd/- Sd/- (KESHAV DUBEY) (BALAKRISHNAN S) Accountant Member Judicial Member Bangalore. Dated: 07.07.2026. /NS/*

Copy to: 1. Appellants 2. Respondent 3. CIT 4. CIT(A) 5. DR 6. Guard file By order Assistant Registrar, ITAT, Bangalore.

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