POOVACHAL RURAL HOUSING SOCIETY LTD,THIRUVANANTHAPURAM vs. ITO, WARD-2(1), THIRUVANANTHAPURAM

Since identical issues are involved in these appeals, they are heard together and disposed of vide this common order. For the sake of convenience and clarity the facts relevant to the appeal bearing for AY 2014-15 are stated herein.

Brief facts of the case are that the appellant is a co-operative society registered under the Kerala State Co-operative Societies Act, 1969. The return of income under the provisions of section 139(1) of the Income Tax Act, 1961 (the Act) was not filed for AY 2014-15. However, based on the information that the appellant made a cash deposit to the tune of Rs. 6,62,15,000/- with Syndicate Bank, Kattakkada Branch, the AO formed an opinion that income escaped assessment to tax. Accordingly a notice u/s. 148 of the Act was issued on 26.03.2021. In response to the notice u/s. 148, the appellant filed return of income disclosing Nil income after claiming deduction u/s. 80P of Rs. 35,27,567/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-2(1), Thiruvananthapuram (hereinafter called "the AO") by making a best judgement assessment u/s. 144 r.w.s. 147 of the Act on 21.03.2022 at a total income of Rs. 6,62,15,000/-.

Being aggrieved, an appeal was filed before the CIT(A), who vide impugned order dated 12.11.2024 set aside the assessment order to the file of the AO for fresh assessment. During the pendency of the appeal before the CIT(A), the AO issued show cause notice u/s. 154 of the Act proposing to amend the assessment order to levy tax under the provisions of section 115BBE of the Act as against normal rate of tax as the assessee had failed to respond to the notice u/s. 154 of the Act. In the circumstances the AO proceeded with passing order u/s. 154 dated 20.09.2022 levying tax

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 us in the present appeal.

It is submitted that since the original assessment was set aside by the CIT(A) to the file of the AO for fresh adjudication, the present appeal may also be set aside to the file of AO for de novo adjudication.

On the other hand, the CIT-DR has no serious objection for remanding the matter to the file of the AO. The appeals filed by the assessee are remand back to the AO for de novo adjudication in accordance with law after affording reasonable opportunity of hearing to the assessee.

In the result, appeals filed by the assessee are allowed for statistical purposes.