THE PATIALA COOPERATIVE MARKETING SOCIETY LIMITED,PATIALA vs. INCOME TAX OFFICER, PATIALA

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH HYBRID HEARING BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपीलसं./ ITA No.1834/CHANDI/2025 & 2. आयकरअपीलसं./ ITA No.1835/CHANDI/2025 (िनधा�रणवष� / Assessment Year: 2016-17) & 3. आयकरअपीलसं./ ITA No.1836/CHANDI/2025 (िनधा�रणवष� / Assessment Year: 2017-18) The Patiala Cooperative Marketing ITO Society Limited Aaykar Bhawan बनाम/ Vs. 98, Phase – I, New Grain Market New Leela Bhawan Sirhind Road, Patiala – 147001 Patiala - 147001 �ायीलेखासं./जीआइआरसं./PAN/GIR No. AADAT-6180-G (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Sh. Deepinder Singh (Advocate) – Ld. AR ��थ�कीओरसे/Respondent by : Dr. Ranjit Kaur (Addl. CIT) - Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 29-06-2026 घोषणाकीतारीख /Date of Pronouncement 06-07-2026 : आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeals by assessee for Assessment Year (AY) 2016- 17 & 2017-18 arises out of separate orders of learned first appellate authority. First, we take up ITA No.1834/Chandi/2025 which arises out

of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 31.10.2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 r.w.s 263 r.w.s.144B of the Act on 11.02.2022. In the assessment order, Ld. AO denied deduction u/s 80P to determine income of Rs.24.87 Lacs for want of any representation from the assessee. The Ld. CIT(A) confirmed the assessment for the same very reasons against which the assessee is in further appeal before us. The Ld. CIT(A) did not condone the delay of 540 days also. The only prayer of Ld. AR is another opportunity of hearing before lower authorities which has been opposed by Ld. Sr. DR. The Ld. AR stated that the assessee is in a position to substantiate its case. 2. Keeping in mind the principles of natural justice and considering the background of the assessee, we set aside the impugned order and restore the appeal back to Ld. CIT(A) for de novo adjudication on merits with a direction to the assessee to plead and prove its case. The issue of delay would not be raised by Ld. CIT(A). The appeal stand allowed for statistical purposes. 3. In ITA No. 1835/Chandi/2026, the assessee is aggrieved by confirmation of consequential penalty u/s 271(1)(c) for Rs.7,65,480/-. Since we have restored the quantum appeal to Ld. CIT(A), this appeal also stands restored back to Ld. CIT(A) on similar lines. 4. In ITA No.1836/Chandi/2026 for AY 2017-18, similar assessment has been framed by Ld. AO on 15.03.2023 denying deduction u/s 80P to the assessee. The Ld. CIT(A) did not condone the delay and

confirmed the assessment on merits. Taking the same view, this appeal also stands restored back to Ld. CIT(A) for adjudication on merits with a direction to the assessee to plead and prove its case forthwith. 5. All the appeals stand allowed for statistical purposes. Order pronounced on 06th July, 2026

-Sd- -Sd- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER AS Dated: 06-07-2026 आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF

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