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Facts
The assessee, a primary credit cooperative society, filed its return declaring NIL income after claiming deduction under Section 80P. The assessment was completed determining total income at Rs. 27,58,658/- after disallowing the deduction. The assessee remained absent before the CIT(A), who dismissed the appeal, leading to this appeal before the Tribunal.
Held
The Tribunal noted that the last two notices of hearing to the assessee were issued within a short period of 12 days, leading to an ex-parte order by the CIT(A). The Tribunal set aside the ex-parte order and remanded the matter back to the CIT(A) for fresh adjudication after providing a reasonable opportunity of hearing.
Key Issues
Whether the ex-parte order passed by the CIT(A) was justified, considering the short notice period, and whether the assessee should be granted another opportunity for a proper hearing.
Sections Cited
80P, 143(3), 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE
Before: SHRI R. K. PANDA & SHRI VINAY BHAMORE
Assessment Year : 2020-21 Sadashiv Shejal Nagari Vs. ITO, Ward-2, Sangli. Sahakari Patsanstha Maryadit, 924B, Kokitkar Bhava, Upper Gadgil Fruit Shop, Kapad Peth, Sangli- 416416. PAN : AABAS9495F Appellant Respondent Assessee by Shri Narendra Joshi (Virtual) : Revenue by : Shri Milind Debaje Date of hearing : 28.08.2025 Date of pronouncement : 29.08.2025 आदेश / ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 27.03.2025 passed by Ld. CIT(A)/NFAC for the assessment year 2020-21.
Facts of the case, in brief, are that the assessee is a primary credit cooperative society duly registered under Maharashtra State Cooperative Societies Act. The assessee has e-filed return of income on 06.12.2020 declaring total income at Rs.Nil after 80P(2)(a)(i) of the IT Act. The case was selected for scrutiny through CASS and statutory notices were issued to the assessee. The assessment was completed u/s 143(3) r.w.s. 144B of the IT Act by determining total income at Rs.27,58,658/-. The above assessed income includes addition of Rs.27,58,658/- on account of disallowance of deduction u/s 80P of the IT Act.
Since the assessee remained absent, Ld. CIT(A) dismissed the appeal filed by the assessee and confirmed the order passed by the Assessing Officer.
It is this order against which the assessee is in appeal before this Tribunal.
Ld. AR appearing from side of the assessee submitted before us that the order passed by Ld. CIT(A)/NFAC is unjustified. Ld. AR submitted that somehow the notices issued by Ld. CIT(A)/NFAC could not be seen by the concerned person which resulted in ex-parte order passed by Ld. CIT(A)/NFAC. Ld. AR further submitted that the assessee cooperative society is entitled to claim deduction u/s 80P of the IT Act and if one opportunity is provided to the assessee, he will substantiate the grounds of appeal before Ld. CIT(A)/NFAC. Accordingly, Ld. AR requested before Ld. CIT(A)/NFAC and further requested to provide one opportunity to appear before Ld. CIT(A)/NFAC.
6. Ld. DR appearing from side of the Revenue relied on the orders passed by the subordinate authorities and requested to confirm the same.
We have heard Ld. Counsels from both the sides and perused the material available on record including paper book as well as case laws furnished by the assessee. In this regard, we find that admittedly Ld. CIT(A)/NFAC issued five notices of hearing to the assessee. However, we find that last two notices of hearing were issued within a period of only 12 days time. Considering the totality of the facts of the case and in the interest of justice, we deem it appropriate to set-aside the ex-parte order passed by Ld. CIT(A)/NFAC and remand the matter back to him with a direction to decide the appeal afresh and as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the notices issued by Ld. CIT(A)/NFAC in this regard and produce relevant documents/evidences/explanations in support of grounds of appeal without taking any adjournment under any pretext, otherwise Ld.