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Facts
The assessee, a co-operative society, filed its return declaring a total income of Rs. 77,63,28,710/-. The case was selected for scrutiny, and the AO made additions including disallowance of expenses and addition of income related to a Technical Support Scheme, and disallowance under section 80P.
Held
The ITAT found that the CIT(A) had passed an ex parte order without adjudicating the merits of the additions, despite the assessee's submissions being available. In the interest of natural justice, the matter was remanded back to the CIT(A).
Key Issues
Whether the CIT(A) erred in passing an ex parte order without adjudicating the merits of the case, and whether the appeal should be remanded for fresh consideration.
Sections Cited
37, 80P, 250, 143(2), 142(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “D” BENCH KOLKATA
Before: Shri Rajesh Kumar & Shri Pradip Kumar Choubey
order
: January 08, 2026 ORDER
Per Pradip Kumar Choubey, Judicial Member:
This appeal filed by the assessee is directed against the order dated 23.10.2024 of the NFAC, Delhi (hereinafter referred to as the “CIT(A)”) passed u/s 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for the assessment year 2018–19.
The appeal has been filed by the assessee with a delay of 286 days. The assessee has filed an affidavit for condonation of the delay, which is self-explanatory. After going over the said affidavit, we find that the delay was occurred due to unusual circumstances which was beyond the control of the assessee and consequently, the delay in filing the appeal is hereby condoned and we proceed to dispose of the appeal on merits.
Brief facts of the case are that the assessee is a co-operative society, has e-filed its return of Income for the A.Y. 2018-19 declaring total income of Rs. 77,63,28,710/-. The case was selected for scrutiny West Bengal Co-Operative Milk Producers Federation Ltd under CASS. Accordingly, notices u/s. 143(2) & u/s. 142(1) were issued and the assessee submitted responses on various dates. After considering the response of the assessee, the assessing officer had made the following additions:- i. Disallowance of claimed expenses u/s. 37 from TSS (Technical Support Scheme) at Rs.1,07,64,052/- ii. Addition Income from TSS at Rs.67,95,764/- iii. Disallowance u/s 80P at Rs.67,98,625/-
Aggrieved by the said order, the assessee filed an appeal before the CIT(A) wherein the ld. CIT(A) dismissed the appeal of the assessee by passing an ex parte order on the ground of non-compliance on different dates by the assessee.
Aggrieved and dissatisfied, the assessee is in appeal before us. At the time of hearing, the Ld. AR without going into the merits of the case submitted that the ld. CIT(A) has passed an ex parte order without going into the merits of the case. The Ld. AR therefore prayed for one fresh opportunity to be given to prove the case of the assessee before the lower authorities.
The Ld. DR did not make any objection to the above proposal of the ld. AR.
We have considered the submissions of the counsels of the respective parties and perused the material available on record. We find that the ld. CIT(A) passed an order ex parte without adjudicating the merits of the additions despite the fact that the submission of the assessee was available before the ld. CIT(A). Under the circumstances and on the request of the assessee, in the interest of natural justice and fair play, we remand the matter back to the file of ld. CIT(A) with a 2 West Bengal Co-Operative Milk Producers Federation Ltd direction to adjudicate the matter afresh after considering the documentary evidences/details and to pass a speaking order in accordance with law. The assessee is directed to fully cooperate in the remand proceedings by producing supporting documents/details to substantiate the claim of the assessee.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Kolkata, the 8th January, 2026.