VIVIDODDHESH PRATHAMIK GRAMEEN KRUSHI SAHAKAR SANGH NI,SANIKOPPA vs. THE INCOME TAX OFFICER, WARD - 1, BELAGAVI
Facts
The assessee, a cooperative society, made cash deposits of Rs. 10,20,000/- during demonetization but failed to file an income tax return or comply with notices. Consequently, the AO made an addition under Section 68 and denied deduction under Section 80P, which the CIT(A) upheld ex-parte due to the assessee's repeated non-compliance with hearing notices.
Held
The Tribunal acknowledged the CIT(A)'s ex-parte order due to non-compliance but, considering principles of natural justice, granted the assessee another opportunity to present its case. The CIT(A)'s order was set aside, and the matter was remitted for fresh adjudication, subject to the assessee paying a cost of Rs. 1000/- and cooperating with proceedings.
Key Issues
Whether the addition of cash deposits under Section 68 and denial of deduction under Section 80P were justified, and if the ex-parte order by the CIT(A) without a further opportunity to the assessee violated principles of natural justice.
Sections Cited
Section 144, Section 250, Section 68, Section 80P, Section 142(1)
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Income Tax Appellate Tribunal, PANAJI BENCH
Before: SHRI PAVAN KUMAR GADALE & SHRI G D PADMAHSHALI
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.79/PAN/2025 (A.Y. 2017-18 ) Vividoddhesh Prathamik Vs ITO-Ward-1, Grameen Krushi Sahakar Civil Hospital Road, . Sangh Ni,Sanikoppa, Belagavi-590001. Bailhongal, Karnataka. Belagavi-591102, . Karnataka. PAN .No. AACAP0110D (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) Assessee by Shri.Veeranna Murgod.AR Revenue by Smt Rijula Uniyal.Sr.DR सुनवाई की तारीख/Date of Hearing 04.08.2025 घोषणा की तारीख/Date of Pronouncement 05.08.2025 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of NFAC/CIT(A) passed u/sec 144 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 addition u/sec68 of the Act and denial of claim u/sec80P of the Act by the Assessing Officer. 2. The brief facts of the case are that, the assessee is a cooperative society engaged in providing the credit facilities to members. The Assessing Officer (AO) based on the information and data analytics/ cash deposits data found that the assesse has made cash deposits in The
2 ITA. No. 79/PAN/2025 Vividoddhesh Prathamika Grameen Krushi Sahakar Sangh Ni. Belgaum District Central Co-Op Bank Ltd during the demonetization period and the assesse has not filed the return of income and the notice U/sec 142(1) of the Act along with questionnaire was issued and there was no compliance. Whereas the A.O found that the assessee has made the cash deposit of Rs.10,20,000/- in the bank account in the F.Y.2016-17 and explanations were called to substantiate the deposits.Since, no explanations/details were filed, the AO considering the information available on record has invoked the provisions of Sec.144 of the Act and made addition of (i) cash deposits of Rs.10,20,000/- u/sec68 of the Act and (ii) denied the claim of deduction u/sec 80P of the Act of Rs.1,11,567/- and finally assessed the total income of Rs.11,31,570/- and passed the order u/sec 144 of the Act dated 09.12.2019. 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. 79/PAN/2025 Vividoddhesh Prathamika Grameen Krushi Sahakar Sangh Ni. 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. 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 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 4 of the 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 additions 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, we shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information subject to payment of cost of Rs.1000/- to the income tax department within one month from the date of
4 ITA. No. 79/PAN/2025 Vividoddhesh Prathamika Grameen Krushi Sahakar Sangh Ni. receipt of the order and produce the proof of payment. Accordingly, we 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 issue and the assesse should be provided adequate opportunity of hearing and shall cooperate in submitting the information. And we allow the grounds of appeal of the assessee for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 05.08.2025.
Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 05/08/2025 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. 79/PAN/2025 Vividoddhesh Prathamika Grameen Krushi Sahakar Sangh Ni. 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 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed
