KAMDHENU MAHILA MULTIPURPOSE CO-OP SOCIETY LTD,BELGAUM vs. ASSESSMENT UNIT, INCOME TAX DEPARTMENT, DELHI
Facts
The assessee, a cooperative society, was denied deduction under Section 80P of the Income Tax Act by the Assessing Officer during reassessment proceedings (AY 2015-16), which also involved an addition of interest income. The CIT(A) dismissed the assessee's appeal ex-parte due to non-compliance with notices, confirming the AO's action.
Held
The Tribunal acknowledged the ex-parte dismissal by the CIT(A) but emphasized the principles of natural justice. It decided to set aside the CIT(A)'s order and remitted the matter back to the CIT(A) to provide the assessee with an adequate opportunity of hearing to substantiate its case regarding the Section 80P deduction.
Key Issues
Whether the CIT(A) erred in dismissing the appeal ex-parte and confirming the denial of Section 80P deduction without allowing the assessee a proper opportunity to be heard.
Sections Cited
147, 144B, 250, 80P, 148, 143(2), 142(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH PANAJI
Before: SHRI PAVAN KUMAR GADALE
IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER I T A. Nos.253/PAN/2025 (A.Y. 2015-16) Kamdhenu Mahila Vs I T O, Multipurpose Co Op Society, National e Assessment . Vengurla Road, Centre, Sulaga, Delhi. Belgaum-591108, Karnataka. PAN/GIR No. AABAK8652N (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent)
Assessee by Shri.Pramod Y Vaidya.AR Revenue by Smt.Rijula Uniyal.Sr.DR सुनवाई की तारीख/Date of Hearing 13.11.2025 घोषणा की तारीख/Date of Pronouncement 13.11.2025 ORDER PER PAVAN KUMAR GADALE ,JM: The assesse has filed the appeal against the order of the NFAC/CIT (A) passed U/sec147 r.w.s144B 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. The brief facts of the case are that, the assesse is a cooperative society and is engaged in activities of providing credit facilities to its members. The income tax department based on the NMS portal found large transactions are done
2 ITA. No.253/PAN/2025 Kamdhenu Mahila Multipurpose Co Op society.. by the assesse in the F.Y.2014-15 and the assesse has not filed the return of income for the A.Y.2015-16. The Assessing officer (A.O) has reason to believe that the income has escaped the assessment and issued notice u/sec148 of the Act and further notice u/sec143 (2) and u/sec 142(1) of the Act are issued calling for the details and there was partial compliance. The Assessing Officer (A.O) has dealt on the submissions filed on 22.06.2023 & 12.08.2023 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 and made addition of interest income from banks and assessed the total income of Rs.54,161/- and passed the order u/sec 147 r.w.s144B of the Act dated 02.03.2024. 3. 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 no compliance by the assessee to notices. 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. 4. At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming the action of the Assessing
3 ITA. No.253/PAN/2025 Kamdhenu Mahila Multipurpose Co Op society.. 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). 5. 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 3 Para 4.1 of the order but there was no response and thus the Ld.CIT(A) came to a conclusion that the assesse is not interested and decided the appeal based on the information available on record. Whereas the assesse has raised grounds of appeal challenging the denial of claim of deduction u/sec 80P of the Act by the A.O and there could be various reasons for non appearance 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
4 ITA. No.253/PAN/2025 Kamdhenu Mahila Multipurpose Co Op society.. 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. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 13/11/2025 as per rule 34(5) of the ITAT Rules 1963. Sd/- (PAVAN KUMAR GADALE) JUDICIAL MEMBER Panaji Dated: 13/11/2025 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//
BY ORDER, (Asstt. Registrar)ITAT, Panaji
5 ITA. No.253/PAN/2025 Kamdhenu Mahila Multipurpose Co Op society..
Initial Date 1. Draft dictated on PS 2. Draft placed before author PS
Draft proposed & placed before PS the second member 4. Draft discussed/approved by PS Second Member. 5. Approved Draft comes to the PS Sr.PS/PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk Date on which file goes to the 8. AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed
