SUVERNAKARAR COOPERATIVE SOCIETY LIMITED,HONAVAR vs. INCOME TAX OFFICER WARD 1 KARWAR, KAARWAR

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER I T A. Nos159/PAN/2025 (A.Y. 2017-18) Suvernakarr Cooperative Vs ITO-Ward-1, Society Ltd, SanteriKrupa, . Kintalkeri, KaigaRoad, Honavar, Habbuwada, Uttara Kannada-581334, Karwar-581306, Karnataka. Karnataka. PAN.NO. AAAAS1927M (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent)

Assessee by Shri.Parameshwara Bhat.AR Revenue by Smt.Rijula Uniyal.Sr.DR सुनवाई की तारीख/Date of Hearing 20.11.2025 घोषणा की तारीख/Date of Pronouncement 20.11.2025 ORDER PER PAVAN KUMAR GADALE ,JM: The assesse has filed the appeal against the order of the NFAC/CIT (A) passed U/sec143(3) and u/sec 250 of the Act. The assesse has raised the grounds of appeal challenging the ex-parte order of the CIT(A) sustaining the denial of claim of deduction u/sec80P of the Act made by the Assessing Officer. 2. At the time of hearing, the Ld.AR brought to the knowledge of the bench, that there is a delay of 104 days in filing the appeal before the Hon’ble Tribunal and the assesse has filed the affidavit for condonation of delay.

2 ITA. No.159/PAN/2025 Suvernakarar co operative society limited. Whereas, the facts mentioned in the affidavit are reasonable and the Ld. DR has no specific objections. Accordingly, condone the delay and admit the appeal. 3. The brief facts of the case are that, the assessee is a cooperative credit society engaged in providing credit facilities to its members. The assesse has filed the return of income for the A.Y 2017-18 on 07.11.2017 disclosing a total income of Rs.79,740/- after claiming deduction u/sec 80P of the Act of Rs.28,01,481/-. Subsequently the case was selected for scrutiny under CASS and notice u/sec143 (2) and u/sec 142(1) of the Act are issued calling for details of members list, details of cash deposited and the information/ evidences supporting the return of income filed. The assesse has filed the details and the Assessing Officer (A.O) has dealt on the submissions/details of members and interest income from cooperative banks and find that the assessee is not eligible for claim of deduction under section 80P of the Act and also the A.O. was not satisfied with the explanations and dealt on the provisions and judicial decisions and denied the claim of deduction u/sec80P of the Act and assessed the total income of Rs.28,81,220/- and passed the order u/sec 143(3) of the Act dated 22.11.2019. 4. Aggrieved by the order, the assesse has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the AO and has issued notices of hearing and since there was

3 ITA. No.159/PAN/2025 Suvernakarar co operative society limited. no compliance by the assessee.Therefore the CIT(A) considering the information on record has confirmed the action of the A.O and dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal. 5. At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming the action of the Assessing officer overlooking the information of the assessment proceedings. Further the assesse has a good case on merits and shall substantiate with the material evidences and prayed for an opportunity to explain before the lower authorities. Per Contra, the Ld.DR supported the order of the CIT(A). 6. Heard the rival submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance nor appearance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assesse is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The CIT(A) has issued the notices of hearing on various dates referred at Page 8 Para 4 of the order but there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assesse has raised grounds of appeal challenging the

4 ITA. No.159/PAN/2025 Suvernakarar co operative society limited. denial of claim of deduction u/sec 80P of the Act by the A.O and there could be various reasons for non appearance/ compliance which cannot be overruled. Therefore, considering the facts and principles of natural justice, shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh on the disputed issues and the assesse should be provided adequate opportunity of hearing and shall cooperate in submitting the information. And the grounds of appeal of the assesse are allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 20/11/2025 as per rule 34(5) of the ITAT Rules 1963. Sd/- (PAVAN KUMAR GADALE) JUDICIAL MEMBER Panaji Dated: 20/11/2025 Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT 6. Guard file. //True Copy//

5 ITA. No.159/PAN/2025 Suvernakarar co operative society limited.

BY ORDER, (Asstt. Registrar)ITAT, Panaji Initial Date 1. Draft dictated on PS 2. Draft placed before author PS