The Sanjari Co. Op. Credit… vs ITO | s.80P(2)(a)(i), 80P(2)(d) | ITAT Ahmedabad 2025

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

For Appellant: Shri S.N Divetia, with Shri Samir Vora, ARs

For Respondent: Shri B.P Makwana, Sr. DR

Hearing: 17.07.2025Pronounced: 18.07.2025

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

This appeal is filed by the Assessee against the appellate order dated 27.06.2024 passed by the Commissioner of Income Tax (Appeals) /National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2018-19.

The assessee has raised the following grounds of appeals:

1.1 The order passed by U/s.250 passed on 27-06-2024 by NFAC CIT(A)]. Delhi (for short "CIT(A)" upholding the disallowance of Sanjari Co-op Credit Soc. Ltd. Vs. ITO Asst. Year : 2018-19 - 2– deduction u/s 80P(2)(a)(i) and 80P(2)(d) by invoking sec.80A(5) is wholly illegal, unlawful and against the principles of natural justice. 2.1 The Id. CIT(A), has grievously erred in law and or on facts in holding that the profit derived from the business of providing facility to its members by the appellant society of Rs. 10,26,553/- was not admissible for deduction u/s 80P(2)(a)(i). 2.2 That in the facts and circumstances of the case the Id.CIT(A) ought not to have upheld the disallowance of deduction of Rs.1,40,710/ in respect of interest earned from bank u/s 80P(2)(d). 3.1 The Id.CIT(A) has grievously erred in law and or on facts in upholding that the deduction u/s 80P(2)(a)(i) and 80P(2)(d) were not admissible in view of sec.80A(5). 3.2 That the in the facts and circumstances of the Id. CIT(A), ought not to have upheld the disallowance of deduction u/s 80P(2)(a)(i) and 80P(2)(d) by invoking sec.80A(5). It is, therefore, prayed that the disallowance of deduction u/s 80P(2) of Rs. 11,67,263/- upheld by the CIT(A) may kindly be deleted.

At the outset, the Ld. Counsel for the assessee submitted that assessee could not appear before the revenue authorities owing to the absence of staff and lack of technical expertise. The Ld. Counsel for the assessee prayed that, given an opportunity, due compliance will be made and all the details/clarification/explanation would be provided to the revenue authorities. Hence, in the interest of justice the matter is remanded to the Assessing Officer for conducting assessment de-novo. The assessee shall submit all the relevant submissions/documents before the Assessing Officer and comply with the notices issued by the revenue authorities without seeking any unnecessary adjournments.

THE SANJARI CO. OP. CREDIT SOCIETY LTD.,MEHSANA vs. THE INCOME TAX OFFICER,WARD-1,, MEHSANA