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Facts
The assessee, a credit cooperative society, filed its return declaring Nil income after claiming deduction under Section 80P(2)(a)(i). The assessment was completed determining total income at Rs. 5,00,69,150/-, including additions for disallowance of Section 80P deduction and interest expenses. The assessee failed to appear before the CIT(A)/NFAC due to a wrong email address, leading to the dismissal of their appeal.
Held
The Tribunal condoned the delay in filing the appeal. It set aside the ex-parte order of the CIT(A)/NFAC and remanded the matter back for fresh adjudication. The assessee was directed to cooperate and provide necessary documents without seeking adjournments.
Key Issues
Whether the ex-parte order of CIT(A)/NFAC should be set-aside and a fresh opportunity granted to the assessee to present their case, given the circumstances of non-appearance.
Sections Cited
80P(2)(a)(i), 144, 144B, 143(3), 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
Assessment Year : 2022-23 Shradha Saburi Gramin Vs. ITO, Ward-2, Bigar Sheti Sahakari Ahilyanagar. Patsanstha Maryadit, At Post Nimgaon Korhale, Rahata, Dist. Ahilyanagar- 423109. PAN : AAEAS0327F Appellant Respondent Assessee by : Shri Prasad Bhandari (Virtual) Revenue by : Shri Akhilesh Srivastva Date of hearing : 28.07.2025 Date of pronouncement : 22.08.2025 आदेश / ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 27.09.2024 passed by Ld. CIT(A)/NFAC for the assessment year 2022-23.
There is delay in filing of the present appeal. We are satisfied with the reasons mentioned in the affidavit for condonation that the applicant was prevented by sufficient cause for not filing the appeal within the prescribed time limit. After hearing Ld. DR, we condone the delay and proceed to adjudicate the appeal.
The appellant has raised the following grounds of appeal :-
1. On the facts and in the prevailing circumstances of the case and in Law, the learned CIT(A) erred in confirming the addition made by the Ld. Assessing Officer without considering the merits of the case. Hence, the addition so confirmed of Rs.5,00,69,150/- being bad in law may please be deleted.
2. On the facts and in the prevailing circumstances of the case and in Law, the learned CIT(A) erred in confirming the addition made by the Ld. Assessing Officer without considering the replies of the assessee and various case laws submitted before the Ld. Assessing Officer. Hence, the addition so confirmed of Rs. 5,00,69,150/- may please be deleted.
3. Without prejudice to the above and on the facts and in the prevailing circumstances of the case and in Law, it is prayed before the Hon'ble Bench that due to communication of notices under section 250 to the assessee and insufficient time allowed by the Ld. Assessing Officer to reply to the show cause notice, fresh opportunity may please be granted before the Ld. Assessing Officer to make the submission.
4. The Appellant craves the permission to add, amend, modify, alter, revise, substitute, delete any or all grounds of the appeal, if deemed necessary at the time of hearing of the appeal.”
4. Facts of the case, in brief, are that the assessee is a primary credit cooperative society engaged in the business of accepting deposits and providing credit facility to its members. The return of income was furnished by declaring Nil income after claiming deduction of Rs.54,17,427/- u/s 80P(2)(a)(i) of the IT Act. After considering the submission of the assessee, the assessment was completed u/s 144 r.w.s. 144B of the IT Act by determining the Rs.5,00,69,150/-. The above assessed income includes addition of Rs.54,72,427/- on account of disallowance u/s 80P(2)(a)(i) of the IT Act and addition of Rs.4,45,96,726/- on account of disallowance of interest expenses.
5. Since the assessee remained absent, Ld. CIT(A)/NFAC dismissed the appeal filed by the assessee.
We have heard Ld. counsels from both the sides and perused the material available on record, including the documents furnished by the assessee. In this regard, we find that the assessee has furnished reply to the notices issued by the Assessing Officer, however the assessment order was passed u/s 144 r.w.s. 144B of the IT Act wherein deduction u/s 80P(2)(a)(i) of the IT Act was disallowed and interest expenses claimed in the profit & loss account also disallowed. Due to the wrong email address, the assessee could not represent the case in first appellate proceedings and therefore Ld. CIT(A)/NFAC dismissed the appeal filed by the assessee for want of prosecution. It was the sole prayer of the counsel of the assessee that the ex-parte order passed by Ld. CIT(A)/NFAC may kindly be set-aside and one more opportunity be provided to the assessee to support the grounds of appeal before Ld. CIT(A)/NFAC. It was also contended before the Bench that for assessment year 2017-18 and also for assessment year 2020-21 the claim of the assessee made u/s 80P of the IT Act have already been allowed by other Assessing Officers under 143(3) proceedings.
7. On the other hand, Ld. DR relied on the orders passed by the subordinate authorities and requested to confirm the same.
Considering the totality of the facts of the case and in the interest of justice and also without going into merits of the case, we deem it appropriate to set-aside the order passed by Ld. CIT(A)/NFAC and remand the matter back to the file of Ld. CIT(A)/NFAC with a direction to decide the appeal afresh 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 the submissions/evidences/documents in support of grounds of appeal without taking any adjournment under any pretext, otherwise Ld. CIT(A)/NFAC shall be at liberty to pass appropriate order as per law. Thus, the grounds of appeal filed by the assessee are allowed for statistical purposes.