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Income Tax Appellate Tribunal, “SMC”BENCH PANAJI
Before: SHRI PAVAN KUMAR GADALE
Assessee by None(letter dt 12-09-25) Revenue by Shri.Ish Gupta.Sr.DR सुनवाई की तारीख/Date of Hearing 16.09.2025 घोषणा की तारीख/ 17.09.2025 Date of Pronouncement ORDER
PER PAVAN KUMAR GADALE, JM:
The appeal is filed by the assesse against the order of National Faceless Appeal Centre (NFAC) Delhi / CIT(A) passed u/sec 147 r.w.s144 and u/sec 250 of the Act. The assessee has raised the grounds of appeal
challenging the ex-parte order of the CIT(A) sustaining the denial of claim of deduction u/sec80P(2)(a)(i) of the Act by the assessing officer.
2. At the time of hearing, it was brought to the knowledge of the bench, that there is a delay in filing the appeal The Daivadnya cooperative credit society limited. before the Hon’ble Tribunal and the assesse has filed an application and the affidavit for condonation of delay. 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 registered under Karnataka cooperative societies Act 1959 and is primarily engaged in providing credit facilities to its members. The assesee has filed the return of income for the A.Y 2014-15 on 07.10.2015 disclosing a total income of Rs.NIL after claiming deduction of Rs.27,71,020/- u/sec 80P of the Act. And the assessment was completed u/sec143(3) of the Act vide order dated 28-07-2016 accepting the returned income filed by the assesse. Subsequently the Assessing officer (A.0) found that the assesse has advanced loans and accepted the deposits from non members and the A.O has reason to believe that the income has escaped assessment and issued notice u/sec148 of the Act and also notice u/sec 142(1) of the Act is issued calling for details in respect of claims and the investments and deposits made in the cooperative banks and scheduled banks and interest /dividend income earned. The assesse has filed the details through ITBA and the Assessing Officer (A.O) has dealt on the submissions/details and find that the assessee society is not eligible for claim of deduction under section 80P of the Act and the A.O. was The Daivadnya cooperative credit society limited. not satisfied with the partial 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.27,71,020/- and passed the order u/sec 147 r.w.s144 of the Act dated 26.03.2022.
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 assesse to notices. Therefore the CIT(A) considering the information on record has confirm the action of the assessing officer and dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal.
5. Heard the Ld.DR 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 passed the ex parte order. The CIT(A) has issued three notices of hearing in F.Y.2023- 2024 referred at Para 2 of the order and 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 The Daivadnya cooperative credit society limited. denial of claim of deduction u/sec80P of the Act made 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 disputed issue to the file of the CIT(A) to adjudicate afresh and the assesse should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of the Appeal. And, the grounds of appeal of the assesse are allowed for statistical purpose.
6. In the result, the appeal filed by assessee is allowed for statistical purposes. Order pronounced in the open court on 17.09.2025.