SHREE GOMTESH NAGARI SAH PAT SANSTHA MARYADIT,SANGLI vs. ITO WARD 5., SANGLI

Although a number of grounds have been raised by the assessee, however, these all relate to the ex-parte order of the Ld. CIT(A) / NFAC in confirming the action of the Assessing Officer in determining the total income of the assessee at Rs.6,44,37,302/- as against the Nil returned income.

Facts of the case, in brief, are that the assessee is an AOP and the case was picked up in Non-Filing of Return under priority P1 from Insight portal. Since it was seen that there were huge financial transactions for the impugned assessment year but the assessee has not filed the return of income, the case of the assessee was reopened by issue of notice u/s 148 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). Since there was no response from the side of the assessee and it was filing only adjournment petitions twice and no details were filed, the Assessing Officer in the order passed u/s 147 r.w.s. 144 r.w.s. 144B of the Act determined the total income of the assessee at Rs.6,44,37,302/- by making addition of Rs.5,23,35,039/- u/s 69A, Rs.1,20,00,000/- u/s 69 and Rs.1,02,263/- as income from other sources.

Since the assessee despite four opportunities granted by the Ld. CIT(A) / NFAC did not make any submission but was seeking adjournment after adjournment, the Ld. CIT(A) / NFAC dismissed the appeal in absence of any supporting documents.

Aggrieved with such order of the Ld. CIT(A) / NFAC, the assessee is in appeal before the Tribunal.

The Ld. Counsel for the assessee at the outset submitted that due to miscommunication by the concerned employee of the assessee, there was no compliance before the Ld. CIT(A) / NFAC. He submitted that given an opportunity, the assessee is in a position to substantiate its case by filing the requisite details.

The Ld. DR on the other hand strongly objected to the arguments advanced by the Ld. Counsel for the assessee and submitted that despite number of opportunities granted by the Assessing Officer as well as the Ld. CIT(A) / NFAC, there was no compliance from the side of the assessee for which the additions were made. He accordingly submitted that the order of the Ld. CIT(A) / NFAC should be upheld and the grounds raised by the assessee be dismissed.

We have heard the rival arguments made by both the sides, perused the orders of the Assessing Officer and the Ld. CIT(A) / NFAC and the paper book filed on behalf of the assessee. It is an admitted fact that due to non-compliance to various statutory notices, the Assessing Officer completed the assessment determining the total income of the assessee at Rs.6,44,37,302/- by making various additions. Since the assessee did not make any submission before the Ld. CIT(A) / NFAC and was seeking adjournment after adjournment, the Ld. CIT(A) / NFAC sustained the additions made by the Assessing Officer. It is the submission of the Ld. Counsel for the assessee that given an opportunity, the assessee is in a position to substantiate its case by filing the requisite details. Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(A) / NFAC with a direction to grant one final opportunity to the assessee to substantiate its case by filing the requisite details and decide the issue as per fact and law. The assessee is also hereby directed to appear before the Ld. CIT(A) / NFAC on the appointed date and make its submissions, if any, without seeking any adjournment under any pretext failing which the Ld. CIT(A) / NFAC shall be at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.

Grounds raised

Facts of the case, in brief, are that the assessee did not file the return of income for the impugned assessment year. Since the assessee during the year under consideration had deposited cash amounting to Rs.1,69,62,383/- in its bank account, had received commission / brokerage of Rs.90,711/-, earned interest other than interest on securities of Rs.16,876/- and earned fee for professional and technical services of Rs.4,647/- along with certain other financial transactions, the case was reopened u/s 147 of the Act by issue of notice u/s 148 of the Act. The assessee in response to the said notice filed the return of income on 05.10.2023 declaring taxable income at Nil after claiming the deduction u/s 80P(2)(a) of the Act of Rs.14,15,604/-. The Assessing Officer in the order passed u/s 147 r.w.s. 144B of the Act rejected the claim of deduction u/s 80P(2)(a) amounting to Rs.13,36,753/- on the ground that the assessee has received interest from Co- operative bank.

Since the assessee did not make any compliance before the Ld. CIT(A) / NFAC, the Ld. CIT(A) / NFAC upheld the disallowance made by the Assessing Officer.

Aggrieved with such order of the Ld. CIT(A) / NFAC, the assessee is in appeal before the Tribunal.

We have heard the rival arguments made by both the sides, perused the orders of the Assessing Officer and the Ld. CIT(A) / NFAC and the paper book filed on behalf of the assessee. A perusal of page 3 of the order of the Ld. CIT(A) / NFAC shows that he has given 4 opportunities to the assessee out of which the assessee sought adjournments on two occasions and did not make any compliance in other two occasions, the details of which are as under:

While deciding the appeal of the assessee in we have restored the issue to the file of the Ld. CIT(A) / NFAC with a direction to grant one final opportunity to the assessee to substantiate its case by filing the requisite details and decide the issue as per fact and law. Following similar reasonings, we restore this appeal to the file of the Ld. CIT(A) / NFAC for fresh adjudication after providing due opportunity of being heard to the assessee. The grounds raised by the assessee are accordingly allowed for statistical purposes.

Facts of the case, in brief, are that the assessee filed its return of income for the impugned assessment year on 30.10.2018 declaring Nil income after claiming deduction u/s 80P(2)(a)(i) of the Act of Rs.37,46,880/-. The Assessing Officer completed the assessment u/s 143(3) r.w.s. 144B by assessing the total income of the assessee at Rs.65,39,266/- by treating interest income from the investments as ‘income from other sources’.

In appeal, the Ld. CIT(A) / NFAC dismissed the appeal filed by the assessee.

Aggrieved with such order of the Ld. CIT(A) / NFAC, the assessee is in appeal before the Tribunal.

We have heard the rival arguments made by both the sides, perused the orders of the Assessing Officer and the Ld. CIT(A) / NFAC and the paper book filed on behalf of the assesse. The Ld. Counsel for the assessee at the outset filed certain decisions of the Co-ordinate Benches of the Tribunal stating that under identical circumstances the Tribunal has allowed the claim of deduction u/s 80P(2)(a) of the Act. However, we find for assessment years 2015-16 and 2016- 17, such claim of the assessee was restored to the file of the Ld. CIT(A) / NFAC on account of non-prosecution by the assessee before the Ld. CIT(A) / NFAC. Since in those years also there was claim of deduction u/s 80P(2)(a) of the Act and the matter has been restored to the file of the Ld. CIT(A) / NFAC for fresh adjudication, therefore, considering the totality of the facts of the case and in the larger interest of justice, we deem it proper to restore this issue to the file of the Ld. CIT(A) / NFAC with a direction to decide the issue afresh in accordance with law after providing due opportunity of being heard to the assessee. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.

In the result, all the three appeals filed by the assessee are allowed for statistical purposes.