THE KONNAVAR (HONNAVAR) TALUKA PRIMARY AGRICULTURE AND RURAL DEVELOPMENT BANK LIMITED,HONNAVAR vs. INCOME TAX OFFICER, KARWAR
Facts
The assessee, a cooperative credit society, filed a nil return for AY 2017-18 claiming deduction under section 80P. The Assessing Officer denied the deduction and assessed income at Rs. 69,66,510/-, passing an order under section 143(3). The CIT(A) dismissed the assessee's appeal ex-parte due to non-compliance with notices of hearing, leading the assessee to appeal to the ITAT.
Held
The Tribunal observed that the CIT(A) passed the order ex-parte. Applying principles of natural justice and noting the assessee's challenge to the additions on merits, the Tribunal set aside the CIT(A)'s order and remitted the issue back to the CIT(A) for fresh adjudication, granting the assessee another opportunity to present its case.
Key Issues
Whether the CIT(A) erred in dismissing the appeal ex-parte and if the assessee should be granted another opportunity to contest the disallowance of deduction under section 80P.
Sections Cited
143(3), 250, 80P, 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
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.13/PAN/2025 (A.Y. 2017-18 ) The Honnavar Taluka Primary Vs I.T.O Ward-1 Agricultural and Rural Karwar-581301, . Development Bank Limited, Karnataka. N.H.17, Honnavar-581334 Uttarakannada, . Karnataka. PAN .No.AAAAT8448C (अपीलाथ�/Appellant) (��यथ�/Respondent)
Assessee by Shri.Parmeshwar Bhat. AR Revenue by Smt.Rijula Uniyal.Sr.DR
सुनवाई क� तार�ख/Date of Hearing 03.04.2025 घोषणा क� तार�ख/Date of Pronouncement 04.04.2025 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of NFAC/CIT(A) passed u/sec 143(3) 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 2017-18 on 30.10.2017 disclosing a total income of Rs.Nil/- after claiming deduction u/sec 80P
2 ITA. No. 13/PAN/2025 The Konnavar Taluka Primary Agricultural and Rural Development bank. of the Act. Subsequently the case was selected for scrutiny under CASS and 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 on 21-11-2019 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 denied the claim of deduction u/sec80P of the act and assessed the total income of Rs.69,66,510/- and passed the order u/sec 143(3) of the Act dated 21.11.2019.
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.
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
3 ITA. No. 13/PAN/2025 The Konnavar Taluka Primary Agricultural and Rural Development bank. and prayed for an opportunity to explain before the lower authorities. Per Contra, the Ld.DR supported the order of the CIT(A).
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 on various dates referred at Page 4 Para 5.3 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 additions 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 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
4 ITA. No. 13/PAN/2025 The Konnavar Taluka Primary Agricultural and Rural Development bank. Appeal. And, we allow the grounds of appeal of the assesse for statistical purpose.
In the result, the appeal filed by the assessee is allowed for statistical purpose.
Order pronounced in the open court on 04.04.2025.
Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 04/04/2025
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. 13/PAN/2025 The Konnavar Taluka Primary Agricultural and Rural Development bank. Initial Date 1. Draft dictated on PS 2. Draft placed before author PS
Draft proposed & placed before PS the second member Draft discussed/approved by 4. 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
