MURSHIDABAD DIST POLICE PERSONEL & FAMILY WELFARE COOP CREDIT SOCIETY LTD.,,MURSHIDABAD vs. ITO, WARD 42(1),, MURSHIDABAD

IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA Before Shri Rajesh Kumar, Accountant Member and Shri Pradip Kumar Choubey, Judicial Member ITA No. 292 & 293 & 294/KOL/2026 Assessment Year: 2020-21 & 2022-23

Murshidabad Dist Police Personel& Family..........................................................Appellant Welfare Coop Credit Society Ltd., NA Police Line, Berhampore, Murshidabad, West Bengal- 742101. [PAN No. AACAM4550E] Vs. ITO, Ward 42(1) ..…………..…………………....……................................….Respondent Income Tax Office, R.N. Tagore Road, Laldighi, Berhampore, Murshidabad, Bengal- 742101 Appearances by: Sk. Kamaluddin, AR,appeared on behalf of the Appellant. Purushottam Kumar, CIT DR,appeared on behalf of the Respondent. Date of concluding the hearing : June 15, 2026 Date of pronouncing theorder : June 25 ,2026 ORDER Per Pradip Kumar Choubey, Judicial Member: These are the appeals filed by the assessee is directed against the order dated 15.10.2025 & 29.11.2025 & 30.10.2025 of the National Faceless Appeal Centre (NFAC), passed under Section 143(3)& 270A of the Assessment Year 2020-21& 2022-23 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”).

At the very outset, it appears from the report of the Registry that the appeal has been filed by the assessee is time barred by 27 days. Assessee has filed a petition to condone the delay supported with an affidavit. Going over the contents of the petition delay is hereby condoned.

ITA No.292 & 293 & 294/Kol/2026 Assessment Year- 2020-21 & 2022-23 2. In ITA No. 292 and 294 issues are common & ITA No. 293 has been filed against the penalty order passed u/s 270A on the basis of the assessment order passed confirmed by the CIT(A) for the assessment year 2020-21 against which the assessee has preferred appeal being ITA no. 292/26. Since in all the appeal issues are similar and common hence taken up together for disposal. 3. The brief facts of the case of the assessee as it appears from the ITA no. 292/26 thatthe appellant, a credit cooperative society, had filed it ROI for the assessment year under consideration (relevant A.Y.') on 15.02.2021 declaring total income at Rs. NIL. Subsequently, assessment was completed u/s. 143(3) of the Act on 09.09.2022 and total income was assessed at Rs.1.07,02,392/- after making two additions namely (i) Disallowance of deduction u/s 57 of the Act of Rs. 76,50,133/-and (ii) Addition u/s 41(1) of the Act of Rs.30,52,259/- .Later, upon perusal of the assessment records, the AO found that the addition under section 41(1) of the Act amounting to Rs.30,52,259/- remained to be considered/taken for tax calculation in the computation sheet, resulting in assessed income to the tune of Rs.76,50,133/- only. Thus, the AO noticed the mistake in the computation of total income and tax calculation. Accordingly, a notice u/s. 154 of the Act was issued and served upon the appellant on 12.12.2024, intimating it about the mistake observed and provided an opportunity to the appellant to offer its comments on the same. However, the appellant made no compliance till the finalization of the rectification order. Therefore. it was deemed by the AO that the appellant had nothing to offer/submit. Accordingly. the assessment order was rectified vide passing rectification order u/s 154 on 30.12.2024 in which, the taxes & interest payable were duly calculated on the assessed income of Rs. 1,07,02,392/-.

ITA No.292 & 293 & 294/Kol/2026 Assessment Year- 2020-21 & 2022-23 Aggrieved by the said order assessee prefer appeal where in appeal of the assessee has been dismissed by the CIT(A) on two grounds first it is barred by limitation and further due to non- prosecution. Being aggrieved by and dissatisfied the assessee preferred appeal before us 4. The Ld. AR instead of arguing into the merit of the case has only prayed that the appeal of the assessee be remitted back to the file of the AO for fresh consideration as there was no proper compliance before the Assessing Officers at the time of the assessment proceeding. The Ld AR prayed that an opportunity should be given to the assessee to place his case before the AO as the interest of justice demands that assessee has to give an opportunity to place his case. The Ld. AR further submits that Assessing officer has held that assessee has not furnished any explanation on the issue of the claim of the claim of deduction u/s 57 of the Act though it is a fact that assessee is a credit cooperative society entitled to claims deduction u/s 57 of the IT Act. The Ld. AR further submits that delay before the CIT(A) has been explained but that has not been considered. Contrary to that Ld. DR supports the impugned order but did not raise any objection in remitting the appeal of the assessee before the Assessing Officer. 5. Upon hearing the submission of the counsel of the respective parties and on perusal of the impugned order, we find that assessee is a credit cooperative society engaged in the business of providing credit facilities to its members. The Ld. Assessing Officer did not allow the claim of deduction u/s 57 of the Act and assessed the total income of the assessee at Rs. 10,70,23,92/-. The Assessing Officers has held in its order that assessee failed to furnish explanation in support of the 3

ITA No.292 & 293 & 294/Kol/2026 Assessment Year- 2020-21 & 2022-23 claim of deduction u/s 57 of the Act.Before the CIT(A) there was no compliance and the appeal has also been filed after a delay of 108 days. The CIT(A) has dismissed the appeal for want of prosecution and also on the point of limitation as according to him there was no sufficient reason has been assigned to condone the delay. The prayer of the assessee is that the appeal of the assessee be remitted back to the file of AO for fresh consideration after condoning the delay. Going over the order passed by the CIT(A) we find that it has been passed on technical issue not on merit.Interest of justice demands that the assessee has to give an opportunity to place his case before the lower authorities. Since the Assessing Officers has also passed an order when assessee failed to furnish sufficient explanation with respect to her claim of deduction, hence we are remitting the appeal of the assessee before the Assessing Officerwith this direction to pass a fresh order after hearing the assessee.Assessee is also directed cooperate in the remand proceedings. It is pertinent to mention here that the issues are same in ITA No. 294/26 hence the order would be applicable on the same as mutatis mutandis. Order passed in both appeals are hereby set aside. The above noted appeals are remitted back to the file of AO for fresh order. As a result, both appeal i.eITA 292 & 294/2026 are hereby allowed for statistical purpose. ITA No. 293/2026 6. This appeal is against the penalty proceedings initiated from the assessment order passed in ITA No. 292/26.Since the order passed in ITA no.292/2026 has been set aside by us,hence the penalty proceeding has no leg to stand, accordingly set aside. However, AO is at liberty to initiate a fresh penalty proceeding after passing the order in the remand proceeding.

ITA No.292 & 293 & 294/Kol/2026 Assessment Year- 2020-21 & 2022-23 As a result, ITA No. 293/26 is hereby allowed. In view of the discussion made above the appeal bearing ITA No 292& 294/2026 are allowed for statistical purpose and ITA No.293/26 is allowed.

Kolkata, the 25th June , 2026.

Sd/- Sd/- [Rajesh Kumar] [Pradip Kumar Choubey] Accountant Member Judicial Member

DC Dated:. 25.06.2026.

Copy of the order forwarded to: 1. Appellant - 2. Respondent - 3. CIT(A)- 4. CIT- 5. CIT(DR)

//True copy// By order Assistant Registrar, Kolkata Benches

ITA No.292 & 293 & 294/Kol/2026 Assessment Year- 2020-21 & 2022-23