THE MAHATMA SAHAKARI GRIHA RACHANA SANSTHA MDT.,PUNE vs. INCOME TAX OFFICER WARD 3(3), PUNE

ORDER

PER VINAY BHAMORE, JM:

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.