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Facts
The assessee, a co-operative society, had its claim for deduction under section 80P denied in assessment. Its subsequent appeal to the CIT(A) was dismissed due to non-compliance, leading to the present appeal before the ITAT. The ITAT also condoned a 45-day delay in filing this appeal.
Held
The ITAT, noting the CIT(A)'s dismissal *in limine* and the consistent legal view supporting section 80P(2)(d) deduction for interest from co-operative banks, restored the matter to the CIT(A). The CIT(A) was directed to afford proper hearing, consider judicial precedents, and pass a speaking order on merits.
Key Issues
Whether the CIT(A) was justified in dismissing the assessee's appeal due to non-compliance without deciding on merits, and the eligibility of deduction under section 80P(2)(d) for interest income from co-operative banks.
Sections Cited
250, 143(3), 144B, 80P, 80P(2)(d), 250(6)
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Income Tax Appellate Tribunal, A BENCH,
Before: Dr. MANISH BORAD & SHRI VINAY BHAMORE
Year: 2021-22 Junnar Taluka Prathamik PNE-W-59(1), Pune Shikshak Sahakari Patsanstha, Junner, Vs. Junnar-410502 Pune Maharashtra PAN-AAAAJ3324K अपीलार्थी / Appellant प्रत्यर्थी/Respondent Assessee by: None Department by: Shri R.Y. Balawade, Addl. CIT Date of hearing: 28-01-2026 Date of Pronouncement: 02-02-2026 आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER :- This appeal at the instance of assessee is directed against the order of Ld. CIT(A) NFAC, Delhi framed u/s 250 of the Act, dated 10.03.2025 for A.Y. 2021-22 which is arising out of Assessment Order u/s 143(3) r.w.s. 144B of the Act dated 05.12.2022.
Registry has informed that there is delay of 45 days in filing of the present appeal. Application for condonation of delay alongwith affidavit is placed on record and on going through the same, we find that the delay is not intentional. Therefore in the larger interest of justice and placing reliance 2 on judgement of Hon'ble Apex Court in the case of Collector, Land Acquisition vs. Master Katiji and Others(1987) 167 ITR 471(SC) (Supreme Court) and in the case of Inder Singh Vs State of Madhya Pradesh judgement dated 21.03.2025 (2025) INSC 382), delay of 45 days is condoned and appeal is admitted for adjudication.
At the outset Ld. Counsel for the assessee submitted that due to non compliance before Ld. CIT(A) appeal of the assessee has been dismissed and Ld. CIT(A) has not decided on merits of the case. Prayer made to afford one more opportunity to appear before Ld. CIT(A) for necessary adjudication of the issue raised in the instant appeal.
On the other hand Ld. Departmental Representative (DR) supported the order of Ld. CIT(A).
We have heard rival contentions and perused the record placed before us. The assessee is a Co-operative Society and in the assessment framed u/s 143(3) of the Act, assessee’s claim of deduction u/s 80P of the Act has been denied in the appeal before Ld. CIT(A). Assessee failed to respond resulting into dismissal of the assessee’s appeal. Before this Tribunal Ld. Counsel for the assessee has stated that the assessee made a valid claim of deduction u/s 80P of the Act and that the assessee is eligible for deduction u/s 80P(2)(d) of the Act for the interest income earned investment held with co- operative Banks. We find that due to non compliance Ld. CIT(A) has dismissed the assessee’s appeal in limine. Admittedly this Tribunal has been taking a consistent view in plethora of decisions that since the co-operative Banks are basically co-operative societies therefore interest earned on investments held with co-operative Banks is also eligible for deduction u/s 80P(2)(d) of the Act. However, since assessee 3 failed to appear before Ld. CIT(A) inspite of being afforded sufficient opportunity, we considering the facts and circumstances of the case and also in the larger interest of justice deem it appropriate to afford one more opportunity to the assessee and restore the effective issues raised in the instant appeal to the file of Ld. CIT(A) for afresh adjudication to be carried out after considering the judicial precedents dealing with the issue of deduction u/s 80P(2)(d) of the Act to be placed by the assessee before Ld. CIT(A). We also direct the Ld. CIT(A) to pass a speaking order as contemplated u/s 250(6) of the Act. Needless to mention that proper opportunity of hearing shall be granted to the assessee. Further assessee is required to update its latest e-mail id and mobile No. on the website and also remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.