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Facts
The assessee, a cooperative society, filed returns declaring losses for AY 2015-16, which were later revised. The AO completed the assessment by adding capital reserves and subsidies. The CIT(A) directed the AO to allow deduction u/s. 80P but confirmed other additions.
Held
The Tribunal held that the interest of justice would be met by restoring the matter to the AO for de novo adjudication, affording the appellant a reasonable opportunity of hearing, considering the rival contentions.
Key Issues
Whether the AO correctly brought to tax capital reserves and subsidies, and whether the assessee was entitled to deduction u/s. 80P, requiring de novo adjudication.
Sections Cited
143(3), 80P
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI ANIKESH BANERJEE, JM
O R D E R Per: Inturi Rama Rao, AM These appeals filed by the assessee are directed against the orders of the National Faceless Appeal Centre, Delhi (NFAC) dated 30.07.2025 for Assessment Years (AY) 2015-16, 2016-17 & 2018-19.
Since identical issues and facts are involved in these appeals, they are heard together and disposed of by this common order. to 663/Coch/2025 Kerala Kera Karshaka Sahakarana Federation Ltd.
For the sake of convenience and clarity the facts relevant to the appeal bearing for AY 2015-16 are stated herein.
Brief facts of the case are that that appellant is a co-operative society registered under the Kerala State Co-operative Societies Act, 1969. The return of income for AY 2015-16 was filed on 29.09.2015 declaring loss of Rs.3,87,70,750/- and the same was revised on 31.03.2017 at a loss of Rs. 4,68,85,250/-. Against the said return of income, the assessment was completed by the DCIT, Circle 2(1), Thiruvananthapuram (hereinafter called "the AO") vide order dated 27.12.2019 passed u/s. 143(3) of the Income Tax Act, 1961 (the Act) at a total income of Rs. 6,92,84,553/-. While doing so, the AO brought to tax the addition of capital reserves and subsidies received from state government.
Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order directed the AO to allow deduction u/s. 80P of the Act. However, confirmed the other additions.
Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal.
The learned counsel for the assessee submitted that the findings of the first appellate authority that the appellant had failed to produce documents in support of the contentions raised is
On the other hand, the ld. CIT-DR had no objection to remand the matter back to the file of the AO.
Having considered the rival contentions, we are of the considered opinion that the interest of justice would be met, if the matter is restored to the file of the AO for de novo adjudication in accordance with law after affording reasonable opportunity of hearing to the appellant. We order accordingly.
In the result, the appeals filed by the assessee stand partly allowed for statistical purposes.
Order pronounced in the open court on 31st October, 2025.