DEFENCE ORGAINSATION CO OP CREDIT SOCIETY LTD,DELHI vs. INCOME TAX OFFICER, WARD 52(1), KOLKATA

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘A’ BENCH AT KOLKATA Before SHRI GEORGE MATHAN, JUDICIAL MEMBER & SHRI RAKESH MISHRA, ACCOUNTANT MEMBER ITA No(s). 2392/KOL/2025 Assessment Year(s) 2019-20 Defence Orgainsation Co Op ITO, Ward-52(1), Kolkata Credit Society Ltd. Vs. (Appellant) (Respondent) PAN: AAAAD2556P Appearances: Assessee represented by : (None) Adjournment Petition filed. Department represented by : Dheeraj, Sr. DR. Date of concluding the hearing : 19.05.2026 Date of pronouncing the order : 22.06.2026 ORDER PER RAKESH MISHRA, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2019-20 dated 25.08.2025. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal in the rectified Form No. 36 filed by post on 22.10.2025: "1. That the Ld Commissioner of Income Tax (Appeals) - NFAC has erred in law and on facts in interpreting the provisions of Section 249(4) of the Income Tax Act, 1961 and in holding that the appeal was not maintainable on account of non-payment of admitted tax. 2. That the Ld Commissioner of Income Tax (Appeals) has erred in dismissing the appeal as "not admitted" merely on the ground of non- payment of tax under Section 249(4)(a), without appreciating that the

“SYNOPSIS OF THE APPEAL BEFORE THE HON'BLE TRIBUNAL In res: Defence Organisation Co Op Credit Society Ltd ............. Appellant Vs Income Tax Officer, Ward 52(1) -------------------- Respondent Case No.: ITA 2392/KOL/2025 Assessment Year: AY 2019-20 I. Brief Background 1. The appellant is a Co-operative Credit Society formed by employees of the Ministry of Defence, engaged in providing credit facilities to its members and accepting deposits from them. 2. For AY 2019–20, the return of income could not be filed due to the illness and subsequent demise of the tax professional handling the Society's affairs during the period of COVID. 3. During the period of February 2023 and March 2023, reassessment proceedings were initiated under section 147 for the reason of cash deposit in the account of the appellant. The appellant could not attend to the assessment proceedings and an ex parte assessment was completed under sections 144 and 144B on 01.02.2024, estimating income at 10% of total bank credits and determining taxable income at Rs. 1,71,48,081 and raising the Tax demand of Rs. 1,24,00,438 on the appellant. 4. Against the said assessment, the appellant preferred an appeal before the ld. CIT(A), NFAC. II. Compliance with Tax Payment before Filing Appeal 5. Since the appellant is a Co-operative Credit Society providing the credit facilities to its members, the appellant was claiming deduction u/s 80P in the years prior to the relevant Assessment Year. 6. Before filing the appeal, the appellant Computed its income as per audited Income & Expenditure Account o which showed the surplus of Rs. 10,31,013 Since the deduction u/s 80P could not be claimed due to the non-filing of o return of Income and restriction placed by section 80AC, appellant paid tax of Rs. 3,18,553 and interest of Rs. 3,75,987, aggregating to Rs. 7,04,540 on 27.02.2024. 7. Thus, the entire tax liability as per the appellant's admitted computation stood discharged before filing the appeal.

“4. Rival contentions were heard and the submissions made have been examined. The assessee had sought adjournment before the Bench but the