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Facts
The assessee, a credit co-operative society, filed a return declaring Nil income after claiming deduction u/s 80P, but its assessment was completed u/s 143(3) by disallowing the 80P deduction. The assessee's subsequent appeal to the CIT(A)/NFAC was dismissed due to non-appearance.
Held
The Tribunal condoned the delay in filing the appeal. Without delving into the merits, it set aside the CIT(A)'s order and restored the matter back to the CIT(A)/NFAC for fresh adjudication, directing to provide the assessee a reasonable opportunity of hearing and requiring the assessee to respond to notices and submit evidence.
Key Issues
Condonation of delay in filing appeal; and setting aside the dismissal of appeal by CIT(A) for non-appearance, restoring the matter for fresh adjudication on merits.
Sections Cited
Section 80P of the IT Act, Section 143(1) of the IT Act, Section 143(3) of the IT Act
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 21.11.2024 passed by Ld. CIT(A)/NFAC for the assessment year 2018-19.
There is delay in filing of the present appeal. We are satisfied with the reasons mentioned in the application for condonation of delay duly supported by an affidavit that the applicant was prevented by sufficient cause for not filing the appeal within the prescribed time limit. After hearing Ld. DR, we condone the delay and proceed to adjudicate the appeal.
Facts of the case, in brief, are that the assessee is a credit co- operative society duly registered under Maharashtra State Co- operative Societies Act and has furnished return of income on 12.10.2018 declaring total income of Rs.Nil after claiming deduction of Rs.67,74,456/- u/s 80P of the IT Act. The return was processed u/s 143(1) of the IT Act. Subsequently, the case was selected for scrutiny through CASS. After considering the reply of the assessee, assessment was completed u/s 143(3) of the IT Act by determining total income at Rs.67,74,456/-. The above assessed income includes addition on account of disallowance of deduction u/s 80P of the IT Act.
Being aggrieved with the above assessment order, the assessee preferred an appeal before Ld. CIT(A)/NFAC. Since the assessee remained absent, Ld. CIT(A)/NFAC dismissed the appeal of the assessee.
It is the above order against which the assessee is in appeal before the Tribunal.
When the appeal was called for hearing, neither anybody appeared from the side of the assessee nor any application for adjournment was filed by the assessee. Accordingly, we proceed to decide the appeal on the basis of material available on record and after hearing Ld. DR.
We have heard Ld. DR and perused the material available on record. In this regard, we find that Ld. CIT(A)/NFAC has issued various notice of hearing, however nobody appeared from the side of the assessee and therefore Ld. CIT(A)/NFAC dismissed the appeal filed by the assessee. We further find that the assessee is a small primary credit co-operative society and formed for the mutual benefit of the members of the society and if an opportunity to substantiate the grounds of appeal
is provided to the assessee it will meet the ends of natural justice.
8. Considering the totality of the facts of the case and in the interest of justice, without going into merits of the case, we deem it fit to set-aside the order passed by Ld. CIT(A)/NFAC and restore the matter back to his file with a direction to decide the appeal afresh and as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the notices issued by Ld. CIT(A)/NFAC in this regard and to produce relevant submissions, documents and evidences in support of grounds of appeal without taking any