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Facts
The assessee, a cooperative society, claimed a deduction for an amount deposited during the demonetization period. The Assessing Officer disallowed this deduction due to a lack of compliance and documentation, issuing an ex-parte order. The CIT(A) upheld this disallowance.
Held
The Tribunal noted the assessee's lack of compliance but also recognized that the issue under section 80P appeared to be in favor of the assessee. Considering the Covid-19 period and the facts, the case was remanded for a fresh decision.
Key Issues
Whether the deduction claimed by the assessee was correctly disallowed, and whether a fresh opportunity for hearing should be granted.
Sections Cited
250, 147, 144, 144B, 80P
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Income Tax Appellate Tribunal, NAGPUR “SMC” BENCH : NAGPUR
Before: SHRI NARENDER KUMAR CHOUDHRY
This appeal has been preferred by the assessee against the order dated 24/10/2024 impugned herein passed by the Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi [in short, “Ld.Commissioner”] u/sec. 250 of the Income Tax Act, 1961 (for short, “the Act”) for the Assessment Year (for short, “AY”) 2017-18.
In the instant case, the assessee being a cooperative society has claimed deduction of ` 10,00,000/– deposited in Aditay Angha
2 ITA.No.86/NAG/2025 Multi State Credit Co–op Society Amravati during the demonetization period, which was disallowed by the Assessing Officer specifically in absence of any compliance or documents, which the assessee has failed to file, vide assessment order dated 26/03/2022 u/sec. 147 r.w.s. 144 r.w.s. 144B of the Act. Though, the assessee has preferred first appeal before the Ld. Commissioner, however, in spite of sending various notices, the assessee made no compliance and, therefore, in the constrained circumstances, the Ld. Commissioner decided the appeal filed by the assessee as ex–parte and vide impugned order, affirmed the aforesaid addition.
Considering the conduct of the assessee, he does not deserve any leniency, however, the issue u/sec. 80P appears to be covered in favour of the assessee and, therefore, this Court is inclined to afford one more last and final opportunity to the assessee to substantiate its claim. Consequently, considering the peculiar facts and circumstances of the case as the assessment proceedings were carried out during Covid–19 period and, therefore, the instant case is remanded to the file of the A.O. for decision afresh, by affording a reasonable opportunity of being heard to the assessee, however, subject to despot of ` 2,200/– (Rupees two thousand and two hundered only) in the High Court Legal Services Authority at Nagpur within 15 days from today. The assessee is also directed to comply with the notice(s) to be issued by the Ld. Commissioner and file the relevant documents and/or submissions which would be essentially required.
3 ITA.No.86/NAG/2025 4. In the result, appeal of the Assessee is allowed for statistical purposes. Order pronounced in the open Court on 18.06.2025.