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Facts
The assessee, a co-operative society, claimed a deduction of Rs. 2,77,113/- under Section 80P(2)(d) for interest income from nationalized banks, which was disallowed by the AO and affirmed by the Ld. CIT(A) due to non-compliance and lack of documentary evidence. The tribunal condoned a 17-day delay in filing the appeal by the assessee.
Held
The Tribunal, in the interest of justice, remanded the case back to the Ld. Commissioner for a fresh decision, granting the assessee one more opportunity to furnish relevant documents and substantiate its claim under Section 80P. The appeal was allowed for statistical purposes.
Key Issues
Whether the assessee is eligible for deduction under Section 80P(2)(d) for interest income from banks, and whether sufficient opportunity was provided to present evidence.
Sections Cited
Section 250, Section 143(3), Section 80P, Section 80P(2)(d)
AI-generated summary — verify with the full judgment below
BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER
ITA No.252/NAG/2025 (Assessment Year: 2017-18)
B P Ergo Employee Credit Co-op. Society Maryadit, K52, MIDC Hingna Road, Nagpur-440016. PAN: AAAAB 8445 P | Vs. | ITO, Ward-3(4), Nagpur. (Appellant) | (Respondent)
Present for:
Assessee by : Shri Kapil Bahri, Ld. CA.
Revenue by : Shri Surjit Kumar Saha, Ld. Sr.D.R.
Date of Hearing : 26.06.2025
Date of Pronouncement : 18.09.2025
O R D E R
This appeal has been preferred by the Assessee against the order dated 22/01/2025 impugned herein passed by the ADDL/JCIT (Appeals)-1, Siliguri (in short, 'Ld. Commissioner') u/sec. 250 of the Income Tax Act, 1961 (in short, 'Act') for the A.Y. 2017-18.
ITA No.252/NAG/2025 (B P Ergo Employee Credit Co-op. Society Maryadit)
filing of the instant appeal. As the reasons stated by the Assessee
At the outset, it is observed that there is a delay of 17 days in
in the application for condonation of delay which is duly supported
by duly sworn affidavit dated 23/04/2025 are plausible, bonafide
and unintentional, therefore, the delay of 17 days in filing of the
instant appeal is condoned.
Coming to the merits of the case, it is observed that in this
case, vide assessment order dated 18/10/2019 u/sec. 143(3) of the
Act, the Assessing Officer (AO) has made the addition of
Rs.2,77,113/- being 'disallowance of deduction' claimed u/sec.
80P(2)(d) of the Act by the Assessee during the assessment year
under consideration on account of interest income received from
nationalized banks i.e. Central Bank, ICICI Bank and Sahara India
fixed deposits.
The Assessee, being aggrieved, though challenged the said
addition by filing the first appeal before the Ld. Commissioner,
however, despite of affording three opportunities, eventually made
no compliance and, therefore, in the constrained circumstances, the
Ld. Commissioner dismissed the appeal of the Assessee affirming
the addition made by the AO. The Ld. Commissioner in the order
specifically observed that Assessee in support of its claim, could not
furnish any documentary evidences of its registration or its
ITA No.252/NAG/2025 (B P Ergo Employee Credit Co-op. Society Maryadit)
contention i.e. cent percent eligible for claiming deduction u/sec.
80P of the Act.
Thus, considering the peculiar facts and circumstances in
totality, for just and proper decision of the case and substantial
justice, this Court is inclined to afford one more opportunity to the
Assessee to substantiate its claim before the Ld. Commissioner by
producing the relevant submissions/documents, so that Ld.
Commissioner would be in a position to determine the issue under
consideration in its right perspective and proper manner. Thus, the
case is remanded to the file of the Ld. Commissioner for decision
afresh, suffice to say by affording a reasonable opportunity of being
heard to the Assessee. The Assessee is also directed to file relevant
submissions/documents before the Ld. Commissioner. It is hereby
clarified that in case of subsequent default, the Assessee shall not
be entitled for any leniency. Thus, the case is accordingly
remanded to the file of Ld. Commissioner for decision afresh.
In the result, Assessee's appeal is allowed for statistical
purposes.
Order pronounced in the open court on 18.09.2025.
Sd/- (NARENDER KUMAR CHOUDHRY) JUDICIAL MEMBER
vr/-
Copy to: The Appellant
The Respondent
The CIT, Concerned, Nagpur The DR Concerned Bench
//True Copy//
By Order
Senior Private Secretary ITAT, Nagpur.