PORBANDAR JILLA SAHKARI DUDH UTPADAK SANGH LIMITED,PORBANDAR vs. THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 2(1), JAMNAGAR

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ITA 781/RJT/2024Status: DisposedITAT Rajkot05 August 2026AY 2021-223 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the ex parte order of the CIT(A) and restored the matter to the Assessing Officer for fresh adjudication. A cost of Rs. 1,000 was imposed on the assessee for non-compliance.

What were the facts?

The assessee, a co-operative society, claimed deduction under Section 80P. The Assessing Officer made additions, and the CIT(A) dismissed the assessee's appeal ex parte. The assessee appealed to the ITAT, arguing for a fresh opportunity.

What were the issues?

Whether an ex parte order passed by the CIT(A) should be set aside to allow the assessee to present its case on merits, despite previous non-compliance.

Which sections of the Income-tax Act were involved?

Section 80P,Section 143(3),Section 144B,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Rajkot Bench, Rajkot

Before: Dr. Arjun Lal Saini & Shri Sonjoy Sarma

For Appellant: Shri Vimal Desai, Ld. AR
For Respondent: Shri Ganesh Iyer, Ld. Sr. DR
Hearing: 04/08/2026Pronounced: 05/08/2026

आयकर अपीलीय अिधकरण, राजकोट �यायपीठ, राजकोट। In The Income Tax Appellate Tribunal, Rajkot Bench, Rajkot Before Dr. Arjun Lal Saini, Accountant Member And Shri Sonjoy Sarma, Judicial Member

आयकर अपील सं./ITA No. 781/RJT/2024 [ �नधा�रण वष�/Assessment Year: 2021-22 ] Porbandar Jilla Sahkari Dudh Utpadak The Deputy Commissioner of Income Sangh Limited Tax Vs. C/o. Sarda & Sarda, CAs, Sakar, 1st Aaykar Bhawan, Lal Wadi Main Floor, Dr. Radha- Krishnan Road, Opp. Road, Jamnagar-361110, Gujarat Rajkumar College, Rajkot-360001 Gujarat �थायीलेखासं./जीआइआरसं./PAN/GIR No.: AACAP7979A (अपीलाथ�/Appellant) (��यथ�/Respondent) Appellant by : Shri Vimal Desai, Ld. AR Respondent by : Shri Ganesh Iyer, Ld. Sr. DR

Date of Hearing : 04/08/2026 Date of Pronouncement : 05/08/2026

:: ORDER :: Per, Shri Sonjoy Sarma, JM: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2021-22, is directed against the order under section 250 of the Income-tax Act, 1961 [hereinafter referred to as ‘the Act’] passed by the National Faceless Appeal Centre [hereinafter referred to as ‘NFAC’], dated 09.08.2024, which in turn arises out of an order passed by assessing officer u/s. 143(3) of the Act, dated 26.12.2022.

2.

Brief facts of the case are that the assessee is a co-operative society and filed its return of income for the assessment year 2021-22 declaring a total income of

ITA No. 781/RJT/2024 Porbandar Jilasahkari Dudh Utpadak Sangh Ltd. Rs.22,77,270/-. The case was selected for scrutiny to examine the assessee’s claim of deduction under section 80P of the Income-tax Act, 1961.The assessment was completed under section 143(3) read with section 144B of the Act, determining the total income at Rs.3,03,41,867/- after making various additions and disallowances.

3.

Aggrieved by the assessment order, the assessee preferred an appeal before the Ld. Commissioner of Income-tax (Appeals). The Ld. CIT(A), however, dismissed the appeal ex parte and confirmed the additions made by the Assessing Officer.

4.

Aggrieved by the said order, the assessee is in appeal before the Tribunal.

5.

At the time of hearing, the Ld. AR submitted that the impugned order passed by the Ld. CIT(A) is an ex parte order. It was contended that, in the interest of justice, one more opportunity may be granted to the assessee to substantiate its claim before the authority below.

6.

On the other hand, the Ld. DR opposed the prayer of the assessee and submitted that the Ld. CIT(A) had granted sufficient opportunities of hearing. It was pointed out that the appeal was fixed for hearing on four consecutive occasions between 19.02.2024 and 19.07.2024; however, despite such opportunities, the assessee failed to furnish any effective submissions. Therefore, according to the Ld. DR , the Ld. CIT(A) had no option but to dispose of the appeal by confirming the assessment order, and no further indulgence should be granted.

7.

We have heard the rival submissions and perused the material available on record. It is evident that the assessee failed to avail the opportunities granted by the Ld. CIT(A), resulting in the passing of the impugned ex parte order. At the same time, considering the nature of the dispute relating to the claim of deduction under

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ITA No. 781/RJT/2024 Porbandar Jilasahkari Dudh Utpadak Sangh Ltd. section 80P of the Act, we are of the view that the matter deserves to be examined on merits after affording one final opportunity to the assessee. However, keeping in view the conduct of the assessee in not responding to the notices issued by the Ld. CIT(A), we deem it appropriate to impose costs of Rs.1,000/-. The assessee shall deposit the said amount in the Prime Minister’s National Relief Fund and furnish proof of such payment before the Assessing Officer at the time of the fresh proceedings. Accordingly, the impugned order of the Ld.CIT(A) is set aside, and the matter is restored to Assessing Officer with a direction to adjudicate the matter afresh in accordance with law after providing reasonable opportunity of being heard to the assessee. The assessee is also directed to extend full cooperation and promptly comply with all notices issued by the Assessing Officer. Failure to do so shall entitle the Assessing Officer to decide the matter on the basis of the material available on record.

8.

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

Order pronounced in the open court on this 5th day of August, 2026.

Sd/- Sd/- [ Dr. Arjun Lal Saini ] [ Shri Sonjoy Sarma ] लेखा सद�य/Accountant Member �याियक सद�य/Judicial Member राजकोट/Rajkot िदनांक/ Date: 05/08/2026 Copy of the order forwarded to : 1. The assessee 2. The Respondent 3. CIT 4. The CIT(A) 5. DR, ITAT, Rajkot 6. Guard File By order //True Copy// Sr. Private Secretary ITAT, Rajkot

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