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

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2578/PUN/2025 िनधा�रण वष� / Assessment Year : 2021-22 The Mahatma Sahakari Vs. ITO, Ward-3(3), Pune. Griha Rachana Sanstha Mdt., S. No.62 & 65, Sahakar Bhavan, Gandhi Dham, Kothrud, Pune- 411038. PAN : AABTT5342F Appellant Respondent Assessee by : Shri Sharad A. Vaze & Shri Kiran Kulkarani Revenue by : Shri Manoj Tripathi (Virtual) Date of hearing : 10.12.2025 Date of pronouncement : 30.01.2026 आदेश / 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. 2. There is delay in filing of the present appeal. We are satisfied with the reasons mentioned in the application for condonation of

2 ITA No.2578/PUN/2025 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. 3. 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

3 ITA No.2578/PUN/2025 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. 5. 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. 6. It is the above order against which the assessee is in appeal before the Tribunal. 7. 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

4 ITA No.2578/PUN/2025 dismissed the appeal filed by the assessee. We further find that earlier also in the case of the assessee for assessment year 2018-19 the proceedings u/s 263 of the IT Act were quashed by a coordinate bench of this Tribunal by order dated 03.07.2023 passed in ITA No.650/PUN/2023. Accordingly, 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 ex-parte 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 in the light of various decisions relied on by the assessee 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 adjournment under any pretext, otherwise Ld. CIT(A)/NFAC shall be at liberty to pass appropriate orders as per law. Thus, the ground No.1 raised by the assessee is allowed for statistical purposes.

5 ITA No.2578/PUN/2025 Since the matter has been remanded back to the file of Ld. CIT(A)/NFAC for deciding the appeal afresh as per fact and law, the ground related with merits of the case becomes infructuous hence not adjudicated. 9. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 30th day of January, 2026. Sd/- Sd/- (MANISH BORAD) (VINAY BHAMORE) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; �दनांक / Dated : 30th January, 2026. Sujeet आदेश क� �ितिलिप अ�ेिषत / Copy of the Order forwarded to : अपीलाथ� / The Appellant. 1. ��यथ� / The Respondent. 2. 3. The Pr.CIT concerned. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, “B” ब�च, 4. पुणे / DR, ITAT, “B” Bench, Pune. गाड� फ़ाइल / Guard File. 5. आदेशानुसार / BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.