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Facts
The assessee, a Co-operative Society, failed to file a return of income for AY 2018-19. The case was reopened under Section 147, and an addition was made. The assessee failed to appear before the Ld. CIT(A) and the addition was confirmed. The assessee claimed deduction under Section 80P(2)(a)(i)/80P(2)(d) for interest income.
Held
The Tribunal noted that the assessee failed to appear and the order was ex-parte. Without delving into the merits, the Tribunal remitted the issue to the Ld. CIT(A)/NFAC for fresh adjudication, ensuring a proper opportunity of hearing for the assessee.
Key Issues
Whether the appeal should be remitted for fresh adjudication due to the assessee's non-appearance and whether the claim for deduction under Section 80P is valid.
Sections Cited
147, 143(3), 80P(2)(a)(i), 80P(2)(d)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “SMC”, PUNE
Before: DR.MANISH BORAD & SHRI S.S. VISWANETHRA RAVI
This appeal at the instance of assessee is directed against the order of the Ld. CIT(A)/National Faceless Appeal Centre, Delhi dated 25.03.2024 which is arising out the order u/s. 143(3) of the Act for Assessment Year 2017-18 framed by ITO, Ward-1(1), Kolhapur.
When the appeal was called for, none appeared on behalf of the assessee even though proper notice of hearing was issued and served. However, with the assistance of Ld. Departmental Representative, we notice that the impugned order is ex-parte as the assessee failed to attend the hearing and did not file any submissions/documents.
We have heard the Ld. DR and perused the record placed before us. The assessee is a Co-operative Society and no return of income was filed for AY 2018-19. Subsequently, the case of the assessee was reopened u/s. 147 of the Act and the assessment was completed on 13.03.2023 after making an addition of Rs.1,63,447/-. The assessee failed to succeed before the Ld. CIT(A) as it failed to respond to the notices and the addition made by the Ld. Assessing Officer was confirmed. Considering the facts and circumstances of the case and the claim of the assessee that it is entitled to deduction u/s. 80P(2)(a)(i)/80P(2)(d) of the Act for the interest income earned on fixed deposits kept with the Co-operative Banks. In view thereof, without dwelling into merits of the issues considering the grounds of appeal raised by the assessee and in the larger interest of justice and being fair of both the parties, we remit the issue raised on merits in the instant case to the file of the Ld. CIT(A)/NFAC for necessary adjudication, in accordance with law. Needless to mention that proper opportunity of hearing shall be granted to the assessee. The assessee is directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on this 28th day of March, 2025.