Loading judgment…
Facts
The assessee, a co-operative society, filed its return of income declaring 'Nil' income after claiming deductions. The case was selected for scrutiny under the E-assessment Scheme, and during the assessment, additions were made under sections 68 and 80P of the Act.
Held
The Tribunal restored the issue to the file of the CIT(A)/NFAC for fresh adjudication, directing the assessee to appear and present its case with proper documentation. A cost of Rs. 5,000/- was levied on the assessee for its past non-compliance.
Key Issues
Whether the assessee should be granted another opportunity to present its case before the CIT(A)/NFAC after being non-responsive to earlier notices and procedures.
Sections Cited
143(3), 144B, 142(1), 144, 68, 80P
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE
Before: SHRI R. K. PANDA & MS. ASTHA CHANDRA
This appeal filed by the assessee is directed against the order dated 10.09.2024 of the Ld. CIT(A) / NFAC, relating to assessment year 2020-21.
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 additions made by the Assessing Officer in the order passed u/s 143(3) r.w.s. 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
Facts of the case, in brief, are that the assessee is a co-operative society and filed its return of income on 05.01.2021 declaring total income of Rs.Nil after claiming deduction u/s 80P of Rs.40,29,952/-. The case was selected for complete scrutiny assessment under the E-assessment Scheme, 2019 on the following issues: (i) High Creditors / liabilities (ii) Investments/Advances/Loans (iii) Deduction from Total Income under Chapter VI-A
Accordingly statutory notice u/s 142(1) of the Act was issued and served on the assessee. Since the assessee did not respond to the said notice, the Assessing Officer issued a show cause notice u/s 144 of the Act. Since the assessee did not respond to the first show cause notice, the Assessing Officer issued another show cause notice to the assessee. In response to the second show cause notice, the assessee filed part reply. Thereafter another notice u/s 142(1) of the Act was issued and served on the assessee on 23.08.2022. The Assessing Officer completed the assessment on 20.09.2022 determining the total income at Rs.4,84,83,342/- by making addition of Rs.4,44,53,390/- u/s 68 of the Act and Rs.63,45,939/- u/s 80P of the Act.
Since the assessee did not file any submission except statement of facts before the Ld. CIT(A) / NFAC despite number of opportunities granted, 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.
The Ld. Counsel for the assessee submitted that in the interest of justice, the assessee should be given an opportunity to substantiate its case by filing the requisite details before the Ld. CIT(A) / NFAC.
The Ld. DR on the other hand heavily opposed the arguments advanced by the Ld. Counsel for the assessee and submitted that despite number of opportunities granted the assessee never bothered to make any submission before the Ld. CIT(A) / NFAC. He accordingly submitted that the order of the Ld. CIT(A) / NFAC dismissing the appeal filed by the assessee 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 Ld. CIT(A) / NFAC. It is an admitted fact that despite number of opportunities granted the assessee did not make any submission for which the Ld. CIT(A) / NFAC dismissed the appeal filed by the assessee. 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 before the Ld. CIT(A) / NFAC. Considering the totality of the facts of the case and in the interest of justice and without going into the merits of the appeal, we deem it proper to restore the issue to the file of the Ld. CIT(A) / NFAC with a direction to decide the issue after giving due opportunity of being heard to the assessee 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 his 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. At the same time, because of the callous attitude of the assessee in not responding to the notices issued by the office of the Ld. CIT(A)/NFAC, we levy a cost of Rs.5,000/- on the assessee which shall be deposited within one month from the receipt of this order. The Ld. CIT(A) / NFAC shall ensure that the cost has been deposited before disposal of the appeal. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open Court on 3rd July, 2025.