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Facts
The assessee, a cooperative credit society, filed a NIL return for AY 2020-21 claiming an 80P deduction, which the Assessing Officer denied, assessing total income at Rs. 36.76 lakhs. The CIT(A) subsequently dismissed the assessee's appeal ex-parte due to non-compliance with hearing notices issued by the CIT(A).
Held
The Tribunal, considering the principles of natural justice, set aside the ex-parte order passed by the CIT(A). It remitted the disputed issues back to the CIT(A) for fresh adjudication, providing the assessee with another opportunity to present its case and cooperate in submitting information.
Key Issues
Denial of deduction under Section 80P of the Income Tax Act for a cooperative credit society and the validity of an ex-parte order passed by the CIT(A) due to alleged non-compliance.
Sections Cited
Section 143(3), Section 250, Section 80P, Chapter VIA, Section 143(2), Section 142(1), Section 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH PANAJI
Before: SHRI PAVAN KUMAR GADALEHonavar,
Assessee by Ms.Shree Raksha.AR Revenue by Smt.Rijula Uniyal.Sr.DR सुनवाई की तारीख/Date of Hearing 11.11.2025 घोषणा की तारीख/Date of Pronouncement 11.11.2025 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. The brief facts of the case are that, the assesse is a cooperative credit society and is engaged in activities of providing credit facilities to its members. The assesse has filed the return of income for the A.Y.2020-21 on 06.02.2021disclosing a total income of Rs.Nil after VSSSN Nagarbastikeri. claiming deduction of Rs.31,87,654/- u/sec 80P of the Act. Subsequently the case was selected for scrutiny under CASS to examine (i) Low income in comparison to high loans/advances/investment in shares appearing in balance sheet and (ii) Large deduction Under Chapter VIA of the Act. Further notice u/sec143 (2) and u/sec 142(1) of the Act are issued calling for details in support of return of income filed. The assesse has filed the details from time to time and the Assessing Officer (A.O) has dealt on the submissions/details of interest on deposits from the cooperative banks and others 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.36,76,169/- and passed the order u/sec 143(3) r.w.s144B of the Act dated 24.09.2022.
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.
VSSSN Nagarbastikeri.
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 5 Para 5 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 VSSSN Nagarbastikeri. 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.