THE JINDVA SEVA SAHAKARI MANDLI LIMITED,GANDHINAGAR vs. THE ITO, WARD-1, GANDHINAGAR

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ITA 515/AHD/2025Status: DisposedITAT Ahmedabad17 November 2025AY 2015-16Bench: DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL (Judicial Member)4 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that a previous order by the ITAT in the assessee's own case had quashed the order passed by the PCIT under Section 263. Consequently, the subsequent proceedings were treated as null and void.

What were the facts?

The assessee filed an appeal against the CIT(A)'s order dismissing their appeal on grounds of limitation. The CIT(A) had dismissed the appeal due to non-compliance by the assessee, following an order passed by the Principal Commissioner of Income Tax under Section 263.

What were the issues?

Whether the appeal against the assessment order is valid when the underlying Section 263 order has been quashed. Whether the disallowance made under Section 80P(2)(d) and other grounds are sustainable.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 80P(2)(d),Section 271(1)(c),Section 210,Section 234A,Section 234B,Section 234C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: DR. B.R.R. KUMAR, VICE-SHRI SIDDHARTHA NAUTIYAL

For Appellant: Shri Jaimin Shah, AR
For Respondent: Shri C Dharani Nath, Sr. DR
Hearing: 17.11.2025

PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-

1.

This appeal is filed by the Assessee against the appellate order dated 26.02.2025 passed by the Commissioner of Income Tax (Appeals)National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2015-16.

2.

The assessee has raised the following grounds of appeal:

01. That the Ld. CIT(A), NFAC has erred both in law and on facts while dismiss the appeal on the grounds of limitation and therefore it is against Asst. Year : 2015-16 - 2– the principal of natural justice. The Hon'ble ITAT may please decide the appeal on merits 02. That the Ld. ITAT has already quashed the order u/s 263 of the Income Tax Act. 1961 on 09/03/2020, Therefore the order passed by the ITO u/s 143(3) rws. 263 of the Income Tax Act, 1961 is not valid ab-initio, however without considering the facts of the case of the appellant CIT(A) has dismissed the appeal on limitation is against the Principal of Natural Justice and therefore the disallowances made u/s 80P(2)(d) of the Act may please be allowed.

3. That the A.O. has disallowed claim of the appellant U/s 80P(2)(d) for Rs. 12,06,965/- on various income received from the co-op society and therefore considering the facts of the case, deduction u/s 80P(2)(d) of Rs. 12,06,965/-may please be allowed and the assessed Income of Rs.22.62,331/- require to be deleted.

4.

That the Ld. A.O has wrongly mentioned the Income as per 143(3) of Rs 10,55,366/- which facts are wrong and therefore it require to be deleted.

5.

That the appellant has not made any fault as mentioned in section 271(1)(c) of the Income Tax Act, 1961 and as such the penalty proceedings initiated may please be quashed.

6. That the appellant has neither committed default of Sec. 210 nor made any default in payment of advance tax and therefore unwanted interest charged u/s.234A 234B and 234C required to be deleted.

7.

Your appellant craves leave to add, amend, deleted or alter any of the grounds till the appeal is finally heard and decided.

3.

In this case, the order under section 263 was passed by the Ld. Principal Commissioner of Income Tax on 09.03.2020. Pursuant to this, the Assessing Officer passed the Assessment Order on 17.02.2022. The appeal filed against the Assessment Order passed under section 143(3) r.w.s. 263 was dismissed by the Ld. CIT(A) due to the non-compliance of the assessee.

4. Aggrieved by the order of the Ld. CIT(A), the assessee preferred an appeal before the Tribunal.

Asst. Year : 2015-16 - 3– 5. The Ld. Counsel for the assessee submitted a copy of the order of the ITAT in the assessee’s own case in dated 17.02.2023, wherein the order passed by the Ld. PCIT under section 263 has been quashed and the subsequent proceedings have been treated as null and void. Accordingly, the appeal of the assessee is allowed.

6.

In the result, the appeal of the assessee is allowed.

The order is pronounced in the open Court on 17.11.2025.

S /- Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 17.11.2025 MV आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��थ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy

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