RADHAKRISHNA NAGAR SAHAKARI PAT SANSTHA LTD.,MALKAPUR vs. ITO WARD-2, KHAMGAON

Date of Hearing – 21/01/2025 Date of Order – 23/01/2025

O R D E R PER V. DURGA RAO, J.M.

The aforesaid appeal by the assessee is against the impugned order dated 20/08/2024, passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [“learned CIT(A)”], for the assessment year 2022–23.

2. On the basis of the facts, in the circumstances of the case and as per law, the CIT (A) is not justified in confirming the disallowance of deduction u/s. 80P of the Act of Rs. 94,96,805/- made by AO in respect of interest received on 2 Radhakrishna Nagar Sahakari Pat Sanstha Ltd. investment made with co-operative banks when the said investments were made with commercial expediency.

3. On the basis of facts, in the circumstances of the case and as per law the CIT(A) is not justified in confirming the addition in respect of unsecured loans of Rs. 1,03,90,813/-.

4. The appellant craves for the addition to, deletion, alteration, modification of the above grounds of appeal.”

3. While going through the orders of the authorities below, we find that the assessee did not appear before the Assessing Officer during the assessment proceedings and the Assessing Officer was forced to passed ex– parte order by making various additions. While making additions, it is the observations of the Assessing Officer that the assessee failed to furnish details or documentary evidences in response to the statutory notices issued by him. We also find that the assessee also failed to appear before the learned CIT(A) during the first appellate proceedings. The learned CIT(A) observed that the assessee failed to comply with the statutory notices which remained non–complied by the assessee and hence the learned CIT(A) also passed the impugned order by dismissing the appeal filed by the assessee without going onto the merits of the issues raised by the assessee. Be that as it may. We are of the opinion that in the interest of justice and following the principles of natural justice, one opportunity is hereby granted to the assessee to substantiate the case before the Assessing Officer. Consequently, we set aside the impugned order passed by the learned CIT(A) and restore the entire matter to the file of the Assessing Officer for denovo adjudication after providing reasonable opportunity of being heard to the assessee. The assessee is also directed to be prompt in adhering to the statutory notices to 3 Radhakrishna Nagar Sahakari Pat Sanstha Ltd. be issued by the Assessing Officer without seeking any adjournment, except in exceptional case.