COOPERATIVE CANE DEVELOPMENT UNION LTD BALRAMPUR,BALRAMPUR vs. AO NFAC DELHI, NFAC NEW DELHI

The facts of the case, in brief, are that the assessee is a Co-operative Society, registered under the Uttar Pradesh Co-operative Societies Act, 1965. The primary activity of the assessee is marketing of sugarcane produced by its members and also extending credit facilities to its members for purchase of seeds and other agricultural needs. The assessee filed its return of income for the year under consideration on 28/12/2020 declaring NIL income. The case of the assessee was selected for complete scrutiny. The Assessing Officer completed the assessment and passed assessment order under section 143(3) read with section 144B of the I. T. Act and determined the total income of the assessee at Rs.53,05,50,056/- and made addition of Rs.53,05,50,056/-. The order passed by the Assessing Officer was an ex-parte order. Being aggrieved, the assessee went in appeal before the learned CIT(A). Vide impugned appellate order dated 18/09/2024, the assessee’s appeal was dismissed by the learned CIT(A). Now the assessee is in appeal before the Income Tax Appellate Tribunal.

Being aggrieved, the assessee has filed the present appeal in Income Tax Appellate Tribunal against the aforesaid impugned appellate order of learned CIT(A). In the course of appellate proceedings in ITAT learned Counsel for the assessee submitted that the Assessing Officer has passed ex-parte assessment order without providing reasonable opportunity to the assessee and also, order has been passed by learned CIT(A) without providing reasonable opportunity to the assessee. In view of the foregoing, learned Counsel for the assessee submitted, the impugned order of learned CIT(A) should be set aside and the issue in dispute should be restored back to the file of Assessing Officer with the direction to pass fresh order in accordance with law after providing reasonable opportunity to the assessee. The learned Sr. D.R. for the Revenue left the matter to the discretion of the Bench.

We have heard the rival parties and have gone through the material placed on record. On perusal of records, it is seen that the assessment order was passed ex-parte qua the appellant assessee and the appellate order of learned CIT(A) also has been passed in a summary manner, without giving reasonable opportunity to the assessee. In view of the foregoing, the order of learned CIT(A) is set aside and the issue in dispute regarding the aforesaid addition is restored back to the file of the Assessing Officer with the direction to pass de novo order on disputed issues regarding additions made in the assessment order; in accordance with law after providing reasonable opportunity of being heard to the assessee.

In the result, the appeal of the assessee is partly allowed for statistical purposes.