M/S CHALAKI PRIMARY CO-OPERATIVE MILK PRODUCER SOCIETY LTD.,MORINDA vs. ITO, W2(4), ROPAR

आदेश/Order PER DIVA SINGH , JM:

The present appeal has been filed by the assessee assailing the correctness of the order dated 28/09/2018 of CIT(A)-1, Chandigarh pertaining to 2013 – 14 Assessment year on the following grounds:

That the learned CIT(A)-1, Chandigarh, was not justified to pass the 1. Order ex-parte without the presence of Appellant or his counsel.

ITA-1537/CHD/2018 A.Y. 2013-14 Page 2 of 5 2. That the learned CIT(A)-1, Chandigarh, was not justified to dismiss the first ground of appeal regarding addition of Rs. 47,839/- comprising of CDF, Depreciation and Diesel expenditure. 3. That the learned CIT(A)-1, Chandigarh, was not justified to dismiss the second ground of appeal regarding disallowance of deduction u/s 80P on Interest Income of Rs. 3,208/- 4. That the learned CIT(A)-1, Chandigarh, was not justified to dismiss the third ground of appeal regarding deduction of Rs. 1,076/- u/s 80P on profit on trading of cattle feed and ghee. 5. That the learned CIT(A)-1, Chandigarh, was not justified to dismiss the fourth ground of appeal regarding addition of Rs. 8,94,331/- by invoking the provisions of section 68 of the Income Tax Act, 1961 in respect of liabilities outstanding in the balance sheet of the appellant and treating them as unexplained. 6. That the learned CIT(A)-1, Chandigarh, was not justified in not having disposed off the fifth ground of appeal regarding disallowance of deduction of Rs. 2,17,495/- u/s 80P of the Income Tax Act, 1961 despite the fact that the Appellant Society was eligible for such deduction. 7. That the appellant Society was in any case entitled for deduction u/s 80P on its Income and even on disallowances, deduction u/s 80P deserves to be allowed. 8. That the appellant Society reserves the right to raise any additional ground of appeal during appellate proceedings.

application filed seeking time. Relying on the same it was

submitted that certain documents were being obtained on the

basis of which the assessee seeks to assail the ex-parte order.

However considering the fact that it was an ex-parte order

passed by the Ld. CIT(A) which fact has been addressed in the

application moved itself, the Ld. AR withdrew the request for

time. Addressing the non representation of the assessee before

ITA-1537/CHD/2018 A.Y. 2013-14 Page 3 of 5 the Ld. CIT(A), it was submitted that there was some dispute

between the Secretary of the society and the members and

ultimately the Secretary of the Society was removed. On

account of this, dispute unknown to the Society it remained

un-represented. It was submitted by the ld. AR that the

assessee Society has addressed its internal disputes and in the

eventuality the remand back is directed, the assessee shall

fully participate in the proceedings.

2.1 The ld. AR inviting attention to the assessment order

submitted that the order has been passed u/s 144 of the Act as

the assessee remained unrepresented even before the AO.

Accordingly, it was his prayer that in case the remand is made

to the CIT(A), the assessee would need to file fresh evidences

as admittedly no evidences were placed on behalf of the

assessee due to its internal problems with its Secretary.

04.03.2016 passed u/s 144 agreed that the assessee

admittedly did not participate before the AO and even before

the CIT(A) has remained unrepresented. In the circumstances,

remand back to the AO was not objected to.

ITA-1537/CHD/2018 A.Y. 2013-14 Page 4 of 5 4. I have heard the submissions and perused the material on

record. In the facts of the present case, a perusal of the

record shows that the assessee Society remained unrepresented

before the AO as well as the CIT(A). The ld. AR has explained

the lack of representation before the said authorities has

arisen on account of some internal disputes with the Secretary

of the Society. It has been stated that the internal affairs of

the assessee Society have been put in order and the assessee

in the eventuality of remand back is made, shall not abuse the

trust reposed and participate in the proceedings fully and

fairly. Accordingly, in the peculiar facts and circumstances as

argued before the Bench which are not shown to be incorrect,

it is deemed appropriate to set aside the issues back to the file

of the AO with a direction to pass a speaking order in

accordance with law after giving the assessee a reasonable

opportunity of being heard. While so directing, it is made clear

that in the eventuality the assessee abuses the trust reposed

and fails to participate fully and fairly before the AO, the AO

would be at liberty to pass an order on the basis of material

available on record.

ITA-1537/CHD/2018 A.Y. 2013-14 Page 5 of 5 5. In the result, appeal of the assessee is allowed for statistical purposes. Said order was pronounced in the Open Court at the time of hearing itself.

Order pronounced in the Open Court on 19 t h August,2019.

Sd/-

�दवा �संह, ( DIVA SINGH) �या�यक सद�य / JUDICIAL MEMBER

AG/Poonam आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to : अपीलाथ�/ The Appellant 1. ��यथ�/ The Respondent 2. आयकर आयु�त/ CIT 3. आयकर आयु�त (अपील)/ The CIT(A) 4. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड� फाईल/ Guard File 6.

आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar