SHRI ADINATH MULTIPURPOSE,BELAGAVI vs. INCOME TAX OFFICER, WARD - 1, GOKAK
Facts
The assessee, a cooperative credit society, filed its return for A.Y. 2018-19 claiming nil income after deduction u/s 80P. The Assessing Officer denied deductions u/s 80P(2)(a)(i) and 80P(2)(a)(iv) after limited scrutiny. The CIT(A) dismissed the assessee's appeal ex-parte due to non-compliance with notices, thereby confirming the AO's order.
Held
The Tribunal observed that the CIT(A) dismissed the appeal ex-parte despite the assessee raising grounds challenging disallowances. Applying principles of natural justice, the Tribunal granted the assessee another opportunity to present evidence. Consequently, the CIT(A)'s order was set aside, and the disputed issues were remitted back to the CIT(A) for fresh adjudication on merits. Both appeals were allowed for statistical purposes.
Key Issues
Whether the CIT(A) erred in dismissing the appeal ex-parte without considering natural justice principles when the assessee had challenged the disallowance of deduction under Section 80P.
Sections Cited
Section 143(3), Section 250, Section 80P, Section 80P(2)(a)(i), Section 80P(2)(a)(iv), Section 142(1), Section 143(3A), Section 143(3B)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PANAJI BENCH
IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI G D PADMAHSHALI ACCOUNTANT MEMBER I T A. Nos.111 & 112/PAN/2025 (A.Y.2018-19 & 2020-21) Shri Adinath Multipurpose, National Face Less Vs Mahaveer Chouk Munnoli Assessment Centre, . Building,Bellad, NFAC, Bagewadi Hukeri, Delhi. Belagavi-591305, . Karnataka. PAN/GIR No. AABAS3176R (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) Assessee by Shri.Ramesh Mudhol.AR Revenue by Smt.Rijula Uniyal.Sr.DR सुनवाई की तारीख/Date of Hearing 07.08.2025 घोषणा की तारीख/Date of Pronouncement 13 .08.2025 ORDER PER PAVAN KUMAR GADALE ,JM: These two appeals are filed by the assesse against the separate orders of the National Faceless Appeal Centre (NFAC), Delhi / (CIT(A) passed u/sec 143(3) and u/sec 250 of the Act. 2. Since issues involved in these appeals are common and identical, hence they are clubbed, heard and a consolidated order is passed. For the sake of convenience, we shall take up ITA No.111/PAN/2025, A.Y 2018-19 as a lead case and facts narrated. The assessee has raised the grounds of appeal challenging the ex-parte order of the
2 ITA. No.111&112/PAN/2025 Shri.Adinath Multipurpose CIT(A) on the denial of claim of deduction under section 80P(2)(a)(i) & under section 80P(2)(a)(iv) of the Act. 3. The brief facts of the case are that, the assessee is a cooperative credit society and has filed the return of income for the A.Y 2018-19 on 04.09.2018 disclosing a total income of Rs. Nil after claiming deduction u/sec 80P of the Act.Further the case was selected for limited scrutiny and the A.O has issued notice u/sec142(1) of the Act calling for details in respect of claims and the information supporting the return of income filed and the assesse has filed the details. Whereas the A.O was not satisfied with the explanations and dealt on the provisions and judicial decisions and denied the claim of deduction(i) u/sec80P(2)(a)(i) of the Act of Rs.27,66,409/- and (ii) u/sec80P2(a)(iv) of the act of Rs.19,363/- and assessed the total income of Rs27,66,409/- and passed the order u/sec 143(3) r.w.s143(3A)&143(3B) of the Act dated 09.03.2021. 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 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 assesse has filed an appeal before the Hon'ble Tribunal.
3 ITA. No.111&112/PAN/2025 Shri.Adinath Multipurpose 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 assessee has a good case on merits and shall substantiate with the material evidences and prayed for an opportunity to explain before the lower authorities and relied on the factual paper book. Per Contra, the Ld.DR supported the order of the CIT(A). 6. We 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 in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The Ld. CIT(A) has issued the notices of hearing on various dates referred at page 2 of the CIT(A) 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 assessee has raised grounds of appeal challenging the disallowances by the A.O and there could be various reasons for non appearance which cannot be overruled.Therefore, considering the principles of natural justice, we shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and
4 ITA. No.111&112/PAN/2025 Shri.Adinath Multipurpose 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 merits and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of appeal. And, we allow the grounds of appeal of the assessee for statistical purposes. ITA No.112 /PAN/2025. A.Y. 2020-21. 7. As the facts and circumstances in this appeal is identical to ITA.No.111/PAN/2025 for the A.Y 2018-19 (except variance in figures) and the delay in filling the appeal before the CIT(A) is condoned. Further the decision rendered in above paragraph 6&7 would apply mutatis mutandis for this appeal also. Accordingly, we allow the grounds of appeal of the assesse for statistical purposes. 8. In the result, the two appeals filed by the assessee are allowed for statistical purpose. Order pronounced in the open court on 13.08.2025.
-S/d- -S/d- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated:13/08/2025
5 ITA. No.111&112/PAN/2025 Shri.Adinath Multipurpose Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT, Mumbai 6. Guard file. //True Copy//
BY ORDER, (Asstt. Registrar)ITAT, Panaji Initial Date 1. Draft dictated on PS 2. Draft placed before author PS
Draft proposed & placed before 3. 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
6 ITA. No.111&112/PAN/2025 Shri.Adinath Multipurpose
