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Facts
The assessee, a housing co-operative society, claimed a deduction under Section 80P(2)(d) for Rs.1,66,45,142/-. The assessment completed under Section 143(3) disallowed this deduction, leading to an increased taxable income. The assessee's subsequent appeal before the CIT(A)/NFAC was dismissed ex-parte due to non-prosecution, despite the assessee's claim of medical reasons for absence.
Held
The Tribunal condoned the delay in filing the present appeal. It set aside the ex-parte order of the CIT(A)/NFAC and restored the matter to the CIT(A) for fresh adjudication on merits. The CIT(A) was directed to provide a reasonable opportunity of hearing, and the assessee was instructed to cooperate without seeking adjournments.
Key Issues
Condonation of delay in appeal filing and the validity of the CIT(A)'s ex-parte dismissal for non-prosecution, preventing a decision on the assessee's claim for deduction under Section 80P(2)(d).
Sections Cited
80P(2)(d), 143(3), 263, 80P
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “B”, 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 10.03.2025 passed by Ld. CIT(A)/NFAC for the assessment year 2021-22.
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.
The appellant has raised the following grounds of appeal :-
1. The assessee prays to condone the delay of 167 days in filing the appeal for the reasons beyond its control. A suitable affidavit is being enclosed herewith.
2. In the facts and circumstances of the case and as well as in law, the Ld CIT(A) erred in dismissing the appeal for non-prosecution by the assessee disregarding the decision of Hon'ble Jurisdictional High Court in Premkumar Luthra (HUF), which mandates CIT(A) to decide the issue on merit. The Hon'ble Tribunal shall set aside the order of Ld CIT(A) dt 10/03/2025 and restore the appeal with a direction to give reasonable opportunity of being heard.
3. Without prejudice to Ground No 2 above on the basis of facts and circumstances of the case and as per law, the assessee being a co-operative housing society is entitled to deduction u/s 80P of the Income Tax Act 1961 in respect of interest received Rs.1,66,45,142/- from other co-operative societies i.e co- operative banks
4. The appellant craves leave to add, alter, omit or substitute any of the grounds at the time of hearing of the appeal.”
4. Facts of the case, in brief, are that the assessee is a housing co-operative society duly registered under Maharashtra State Co- operative Societies Act and has furnished return of income on 29.12.2021 declaring total income of Rs.12,80,630/- after claiming deduction of Rs.1,66,45,142/- u/s 80P(2)(d) 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.1,79,25,772/- as against the income returned by the assessee at Rs.12,80,630/-. The above assessed income includes addition of Rs.1,66,45,142/- on account of disallowance of deduction u/s 80P(2)(d) 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 filed by the assessee.
It is the above order against which the assessee is in appeal before the Tribunal.
We have heard Ld. Learned counsels from both the sides and perused the material available on record including the copy of case laws furnished by the assessee. In this regard, we find that Ld. CIT(A)/NFAC has issued 3 notices of hearing in a shorter span of 16 days, however due to medical reasons the authorized person could not look into the matter and therefore Ld. CIT(A)/NFAC