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Facts
The assessee, a cooperative credit society, filed its return for A.Y. 2017-18, claiming deduction under section 80P. The Assessing Officer denied the claim and assessed a higher income. The CIT(A) dismissed the assessee's appeal ex-parte due to non-compliance, confirming the AO's action.
Held
The Tribunal found that the CIT(A) dismissed the appeal ex-parte without providing an adequate opportunity of hearing, despite the assessee raising valid grounds challenging the denial of section 80P deduction. Upholding the principles of natural justice, the Tribunal set aside the CIT(A)'s order. The matter was remitted back to the CIT(A) for fresh adjudication after granting the assessee a proper opportunity to submit evidence and information.
Key Issues
Denial of deduction u/s 80P of the Income Tax Act for a cooperative credit society and ex-parte dismissal of appeal by CIT(A) without adequate opportunity of hearing.
Sections Cited
143(3), 250, 80P, 143(2), 142(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH PANAJI
Before: SHRI PAVAN KUMAR GADALEHonavar,
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.
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.
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.
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 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).
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 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.