ATHOLI VANITHA CO-OPERATIVE SOCIETY LTD,KOZHIKODE vs. ITO, WARD 2(1), KOZHIKODE

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ITA 206/COCH/2025Status: DisposedITAT Cochin08 April 2025AY 2018-19Bench: SHRI INTURI RAMA RAO (Accountant Member)3 pages

AI SummaryRemanded

Facts

The assessee, claiming to be a primary agricultural credit co-operative society, filed a Nil return for AY 2018-19, claiming deduction under Section 80P. The CPC disallowed the Section 80P claim, assessing income at Rs. 36,04,380/-, which was upheld by the CIT(A). The assessee had failed to prove its status as a primary agricultural credit co-operative society before both authorities.

Held

The Tribunal noted that the assessee failed to discharge the onus of proving its status as a primary agricultural credit co-operative society. To meet the ends of justice and following the Supreme Court's decision in Mavilayi Service Co-operative Bank Ltd. v. CIT, the Tribunal remanded the matter back to the Assessing Officer for de novo adjudication with a reasonable opportunity of hearing to the assessee.

Key Issues

Whether the assessee is entitled to deduction under Section 80P as a primary agricultural credit co-operative society, considering its failure to discharge the onus of proof before lower authorities.

Sections Cited

80P, 143(1)

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Mavilayi Service Co-operative Bank Ltd. v. CIT
431 ITR 1 · 2021 · SC
981 citing

Income Tax Appellate Tribunal, COCHIN BENCH

Before: SHRI INTURI RAMA RAO, AM

For Respondent: Smt. Leena Lal, Sr. D.R

Hearing: 26.03.2025Pronounced: 08.04.2025

Appellant by: ------- None ------- Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 26.03.2025 Date of Pronouncement: 08.04.2025 O R D E R This appeal filed by the assessee is directed against the order of the Addl./JCIT (A) - 2, Gurugram, [CIT(A)] dated 09.01.2025 for Assessment Year (AY) 2018-19.

Brief facts of the case are that the appellant claims to be a primary agricultural credit co-operative society. The return of income for AY 2018-19 was filed on 18.07.2018 declaring Nil income after claiming deduction u/s. 80P of the Income Tax Act, 1961 (the Act). The said return of income was processed by CPC u/s. 143(1) of the Act vide intimation dated 11.03.2020 at assessed income of Rs. 36,04,380/-

Being aggrieved, an appeal was filed before the CIT(A). who vide the impugned order confirmed the action of the AO.

Being aggrieved, the appellant is in appeal before the Tribunal in the present appeal.

When the appeal was called on nobody appeared on behalf of the assessee despite due service of notice of hearing. Therefore, we proceeded to dispose of the appeal after hearing the learned Sr. DR.

I find that the CPC disallowed the claim for deduction u/s. 80P of the Act for failure of the appellant society to prove that it is primary agricultural credit co-operative society. Even before the CIT(A), the assessee could not discharge the onus of proving that it is primary agricultural credit co-operative society. Therefore, in order to meet the ends of justice, I am of the considered opinion that the matter is required to be remanded back to the file of the AO for de novo adjudication in accordance with law after affording reasonable opportunity of hearing to the assessee, in the light of ratio of decision of Hon'ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. v. CIT [2021] 431 ITR 1 (SC).