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Facts
The assessee, Pedne Taluka Farmers Service Co-operative Society Limited, engaged in various retail and credit facilities for members, filed its return for A.Y. 2014-15 claiming a deduction of Rs. 38,61,056/- under Section 80P. The AO disallowed the deduction and assessed total income at Rs. 12,64,240/-, which was largely sustained by the CIT(A), leading to the current appeal before the Tribunal. The appeal also involved a delay of 154 days in filing, which was condoned by the Tribunal.
Held
The Tribunal found that the CIT(A) erred by sustaining the disallowance under Section 80P without providing adequate opportunity to the assessee or considering all material evidence. Therefore, the Tribunal restored the disputed issue back to the file of the CIT(A) for fresh adjudication on merits, with a direction to provide proper opportunity of hearing to the assessee.
Key Issues
Whether the CIT(A) erred in sustaining the disallowance of deduction under Section 80P of the Income Tax Act without providing proper opportunity and considering the material evidence presented by the assessee.
Sections Cited
143(3), 250, 80P, 143(2), 142(1), 80P(2)(a)(i), 80P(2)(d)
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Income Tax Appellate Tribunal, “SMC” BENCH PANAJI
ORDER
PER PAVAN KUMAR GADALE, JM:
The appeal is filed by the assesse against the order of the ADDL/JCIT (A)-12 Mumbai passed u/sec 143(3) and u/sec 250 of the Act.
At the time of hearing, the Ld.AR submitted that there is a delay of 154 days in filing the appeal before the Hon’ble Tribunal and the assesse has filed the application and affidavit for condonation of delay. Whereas, the facts mentioned in the affidavit are reasonable and sufficient cause is explained and the Ld. DR has no specific objections. Accordingly, condone the delay and admit the appeal. The assessee has raised the grounds of appeal 2025. Pedne Taluka Farmers Service Cooperative Society Limited. challenging the order of the CIT(A) sustaining disallowance of claim of deduction u/sec80P of the Act by the Assessing Officer.
3. The brief facts of the case are that, the assessee is a cooperative society registered under the Goa Cooperative Society Act 2001 and is engaged in the business of retailers of grocery, consumer goods, agricultural goods and providing credit facilities to its members. The assesse has filed the return of income for the A.Y 2014-15 disclosing a total income of Rs. Nil after claiming deduction of Rs.38,61,056/- u/sec 80P of the Act. Subsequently the case was selected for complete scrutiny under CASS. 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. In compliance, the Ld.AR of the assessee appeared from time to time and has filed the financial statements and details and also produced the books of accounts. The A.O dealt on the material information and provisions of section 80P(2)(a)(i) and section 80P(2)(d) of the Act and the judicial decisions Whereas the Assessing Officer (A.O.) was not satisfied with the explanations of the assessee and recomputed the total income and partly denied the claim of deduction u/sec80P of the act and similarly made disallowance of depreciation and assessed the total income of Rs.12,64,240/- and passed the order u/sec 143(3) of the Act dated 02-12-2016.
2025. Pedne Taluka Farmers Service Cooperative Society Limited. 4. Aggrieved by the order, the assessee has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal
, statement of facts, submissions and findings of the AO but has sustained the disallowance u/sec80P of the Act and granted marginal relief in other grounds of appeal and partly allowed the assessee appeal. Aggrieved by the order of the CIT(A), the assesse has filed the 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 submissions and not accepting the details filed by the assessee in the appellate proceedings and 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. The sole crux of the disputed issue that the CIT(A) has erred in sustaining disallowance of deduction u/sec80P of the Act without providing proper opportunity and overlooking the facts and material evidences. The assesse has filed all the details before the lower authorities and the CIT(A) has not considered the documents and information supporting the claim of the assesse. Prima-facie, the CIT(A) has dealt on the findings of the AO and has not considered the 2025. Pedne Taluka Farmers Service Cooperative Society Limited. submissions/evidences of the assesse filed in the proceedings and has not allowed the grounds of appeal
. Therefore, considering the overall facts, circumstances and principles of natural justice shall provide with one more opportunity of hearing and accordingly restore the disputed issue to the file of the CIT(A) to adjudicate a fresh on merits and the CIT(A) shall provide adequate opportunity of hearing to the assessee and the assessee should also cooperate in submitting the information for early disposal of the appeal and the grounds of appeal of the assessee are allowed for statistical purpose.
7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 23.09.2025.