G 1707 ECHOOR PACCS LTD.,KANCHIPURAM vs. ITO, WARD-1,, KANCHIPURAM

This appeal filed by the assessee is directed against the order passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, [hereinafter “CIT(A)”] for the assessment year 2018-19, vide order dated 14.10.2024.

The assessee is an Agricultural credit Cooperative Society that did not file return of income for the A.Y 2018-19. Based on the information, the assessee had withdrawn Rs. 1,09,30,000/- from its Bank account, the A.O issued notice u/s. 148 of the Act to the assessee and the assessee chose to remain silent. The A.O then proceeded with re-assessment proceedings and issued statutory notices to the assessee. In response to notice u/s. 148 of the Act, the assessee filed its return of income, claiming a deduction u/s. 80P(2)(a)(i) of the Act of Rs. 2,43,136/-. As the assessee had not filed any further reply to the notices, the A.O issued show cause notices dated 14.03.2023 & 24.03.2023 to the assessee. Since, the assessee did not respond for the show cause notices, the A.O had passed an order u/s. 147 of the Act dated 29.03.2023 by making an addition of Rs. 1,14,30,000/- u/s. 69A of the Act on account of unexplained cash deposits and also disallowed deduction claimed u/s. 80P(2)(a)(i) of the Act as the assessee had not filed the return of income within due date u/s. 139(1) of the Act. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A).

On appeal, the Ld. CIT(A) also dismissed the appeal of the assessee on the ground that the assessee did not file its return of :- 3 -: income for the A.Y 2018-19 within due date allowed u/s. 139(1) of the Act and hence, not eligible for deduction u/s. 80P of the Act.

The Ld. Counsel for the assessee prayed for setting aside the order of the Assessing Officer for re-adjudication, since the case was not prosecuted before the Assessing Officer and the same has been confirmed by the Ld. CIT(A) without any discussion.

Per contra, the Ld. DR relied on the orders of the lower authorities and prayed for confirming the impugned order.

We have heard both the parties and gone through the order of the lower authorities below. It is noted that the AO and that of the Ld. CIT(A) have passed the orders without giving proper opportunity to the assessee. Therefore, to meet the ends of justice by providing one more opportunity to the assessee, we remit the matter back to the file of the AO for denovo adjudication. We also direct the assessee to appear before the AO and at liberty to submit the relevant details before the AO for adjudication of the case.

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