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Facts
The assessee, a cooperative society, failed to file a regular return. After a notice under Section 148, a return was filed declaring 'Nil' income after claiming a deduction under Section 80P. The Assessing Officer made additions under Section 69A and disallowed the Section 80P deduction, assessing income significantly higher. The CIT(A) passed an ex-parte order.
Held
The Tribunal noted that the CIT(A) had passed an ex-parte order due to the assessee's non-compliance. Considering the interest of justice, the Tribunal decided to restore the appeal to the CIT(A) for a fresh adjudication on merits, ensuring an opportunity of being heard.
Key Issues
Whether the CIT(A) erred in passing an ex-parte order and whether the assessee should be granted an opportunity for fresh adjudication on merits.
Sections Cited
250, 147, 144, 69A, 80P, 148, 139, 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, B BENCH, PUNE
Before: Dr. MANISH BORAD & SHRI VINAY BHAMORE
Assessee by : Shri Pramod Shingte Revenue by : Shri A.D. Kulkarni, Additional CIT Date of hearing : 01.04.2025 Date of : .04.2025 pronouncement आदेश/ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
This appeal by the assessee pertaining to Assessment Year 2015-16 is directed against the order dated 29.11.2024 passed by the National Faceless Appeal Centre, (NFAC) Delhi u/s. 250 of the Income- tax Act, 1961 (herein after also called ‘the Act’) which in turn is arising out of the Assessment Order passed u/s.147 r.w.s.144 of the Act dated 27.03.2023.
The Assessee has raised following grounds of appeal:-
1. On the facts and the circumstances of the case and in law, lower authorities erred in passing ex-parte order and erred in deciding the issue only on the basis of material available with them, this action is being violative of principal of natural justice. Your appellant prays for granting opportunity of hearing before lower authorities. Without prejudice to the above grounds of appeal, following grounds are also taken on merit,
2. On the facts and in the circumstances of the case and in law the Lower Authorities erred in making an addition of Rs. 52,00,700.00 under section 69A unexplained investment for legitimate deposits kept with the co-operative banks for which source was in the form of deposit kept by its members, interest accrued on such deposit and surplus generated out of business activity of appellant society. Therefore, entire addition is incorrect and deserves to be deleted.
On the facts and in the circumstances of the case and in law the Lower Authorities erred in making a disallowance of deduction under section 80P for sum of Rs. 9,84,836.00 for the reason that assessee has failed to explain the eligibility for such claim, without realizing the fact that appellant society is a credit co-operative society engaged in the business of providing credit facility to its members and its eligible for deduction under section 80P(2)(i) (a) of IT Act. Your appellant prays for allowing such deduction. Your appellant prays for deletion of entire addition. Your appellant craves for to add, alter amend, modify, delete any or all grounds of appeal
before or during the course of hearing in the interest of natural justice.
3. At the outset Ld. counsel for the assessee stated that due to non compliance on part of the assessee, Ld. CIT(A) passed ex- parte order and therefore prayed for providing one more opportunity to go before Ld. CIT(A) for necessary adjudication on merits.
4. Ld. DR though supported the order of Ld. CIT(A) but did not oppose to the request of Ld. counsel for the assessee.
We have heard rival contentions and perused the records placed before us. Assessee is a cooperative society but did not file regular return of income u/s 139 of the Act. Subsequent to the issue of notice u/s 148 of the Act for carrying out the proceedings u/s 147 of the Act, return of income was filed declaring income ‘Nil’ after claiming deduction u/s 80P of the Act at Rs. 9,84,836/- Ld. AO after carrying out the assessment proceedings made addition u/s 69A of the Act at Rs. 52,00,700/- and also disallowed deduction claimed u/s 80P of the Act at Rs. 9,84,836/- and assessed the income at Rs. 61,85,536/-.
The assessee filed the appeal before Ld. CIT(A) challenging the additions made by the AO but during the course of appellant proceedings, the assessee was unable to plead the grounds of appeal. We on considering the request made by Ld. counsel for the assessee, considering the fact that the Ld. CIT(A) has passed a ex-parte order and also in the larger interest of justice and being fair to both the parties deem it proper to restore all the issues raised on merits in the instant appeal, back to the file of Ld. CIT(A) for necessary adjudication as contemplated u/s 250(6) of the Act. Needless to mention that appropriate opportunity of being heard shall be provided to the assessee who shall remain vigilant and should not take adjournment unless otherwise required for reasonable cause. Grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result appeal of the assessee is allowed for statistical purposes.
Order pronounced on this day of April, 2025.