THE PAYAKARAOPETA WOMENS MUTUALLY AIDED CO OP THRIFT CREDIT SOCIETY LIMITED,PAYAKARAOPETA vs. ACIT, CIRCLE-5(1), VISAKHAPATNAM

Facts

The assessee, a co-operative society, claimed a deduction U/s. 80P of the Income Tax Act for AY 2010-11, declaring NIL income. The Assessing Officer disallowed interest income from Fixed Deposits, bank balance, and staff loans, passing an order U/s. 143(3). The Ld. CIT(A) subsequently dismissed the assessee's appeal ex-parte on two occasions due to non-compliance, despite a previous remand order from the Tribunal.

Held

The Tribunal condoned a 2-day delay in filing the appeal and, noting the assessee's plea for a final opportunity, remitted the matter back to the Ld. CIT(A) for fresh adjudication. The CIT(A) is directed to pass an order within 90 days, with a caution to the assessee to cooperate, failing which the CIT(A) may pass an order on merits.

Key Issues

Whether the CIT(A) was justified in dismissing the appeal ex-parte due to non-compliance, and the eligibility of interest income for deduction U/s. 80P(2)(d) of the Act.