Loading judgment…
Facts
The assessee, a cooperative credit society, filed its return for A.Y. 2014-15 claiming deduction under section 80P of the Income Tax Act. The Assessing Officer later re-opened the assessment, denied the 80P deduction, and assessed a higher income. The CIT(A) subsequently dismissed the assessee's appeal ex-parte due to non-compliance, leading the assessee to appeal to the ITAT.
Held
The ITAT acknowledged the CIT(A)'s ex-parte order due to non-compliance but, applying principles of natural justice, decided to grant the assessee another opportunity to present its case. The tribunal set aside the CIT(A)'s order and remitted the disputed issue back to the CIT(A) for fresh adjudication. The assessee is directed to cooperate in the proceedings.
Key Issues
Whether the CIT(A) was justified in dismissing the assessee's appeal ex-parte for non-compliance, and if the assessee should be granted a fresh opportunity to present its case on merits based on principles of natural justice.
Sections Cited
147, 143(3B), 250, 143(3), 80P, 148, 143(2), 142(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PANAJI BENCH
Before: SHRI PAVAN KUMAR GADALE & SHRI G D PADMAHSHALI
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 sec 147 r.w.s143(3B) of the Act and u/sec 250 of the Act. The assessee has raised the grounds of appeal
challenging the ex-parte order of the CIT(A).
2. 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 2014-15 on 20.11.2014 disclosing a total income of Rs.97,420/- after claiming deduction of Rs.27,55,833/- u/sec 80P of the Act and assessment was Grameena Seva Sahakari Sangha Niyamita. completed u/sec143(3) of the Act on 29-11-2016 allowing the claim of deduction u/sec80P of the Act. Subsequently the Assessing officer has reason to believe that the income has escaped assessment and issued notice u/sec148 of the Act dated 31-03-2021 and the assessee has filed the return of income disclosing a total income of Rs.97,240/- on 17-1-2021. Further notice u/sec 143(2) and u/sec 142(1) of the Act are issued calling for details in respect of claims and the information supporting the return of income filed. 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 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.28,53,250/- and passed the order u/sec 147 r.w.s143(3B) of the Act dated 29.03.2022.
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 dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal.
Grameena Seva Sahakari Sangha Niyamita. 4. 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. 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 passed the ex parte order. The CIT(A) has issued the notices of hearing four times referred at Page 6 Para 8 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 addition 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, we shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, we set aside the Grameena Seva Sahakari Sangha Niyamita. order of the CIT(A) sustaining the addition made by the A.O 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, we allow the grounds of appeal of the assesse for statistical purpose.
In the result, the appeal filed by assessee is allowed for statistical purposes.
Order pronounced in the open court on 08.04.2025.