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Facts
The assessee, a cooperative credit society, filed its AY 2020-21 return claiming nil income after deduction under Section 80P. The case was selected for limited scrutiny, and due to non-compliance with notices, the AO invoked Section 144, denied the deduction under Section 80P(2)(d) of Rs.34,74,257/-, and assessed total income at Rs.28,26,199/-. Subsequently, the CIT(A) confirmed the AO's action and dismissed the assessee's appeal ex-parte due to continued non-compliance.
Held
The Tribunal observed that the CIT(A) had passed an ex-parte order despite providing opportunities for hearing. Considering the principles of natural justice and the possibility of valid reasons for non-appearance, the Tribunal decided to set aside the order of the CIT(A) and remit all disputed issues back to the CIT(A). The assessee is to be given adequate opportunity for hearing and must cooperate in submitting information for fresh adjudication on merits.
Key Issues
Denial of deduction under Section 80P(2)(d) of the Income Tax Act and validity of ex-parte assessment/appellate orders passed due to non-compliance by the assessee.
Sections Cited
144, 250, 80P, 80P(2)(d), 143(2), 142(1), 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PANAJI BENCH
Before: SHRI PAVAN KUMAR GADALE & SHRI G D PADMAHSHALIShri Renuka Co-operative
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 assessee has filed the appeal against the order of the National Faceless Appeal Centre (NFAC) Delhi / (CIT(A) passed u/sec144 and u/sec 250 of the Act. The assessee has raised the grounds of appeal challenging the ex-parte order of the CIT(A) on the denial of claim under section 80P(2)(d) of the Act.
Shri Renuka Co-operative Credit Society Limited.
The brief facts of the case are that, the assesse is a cooperative credit society and has filed the return of income for the A.Y 2020-21 on 05.01.2021 disclosing a total income of Rs. Nil after claiming deduction u/sec 80P of the Act. Subsequently the case was selected for limited scrutiny under the CASS and notice u/sec143(2) and u/sec 142(1) of the Act was issued calling for details in respect of claims and the information supporting the return of income filed and there was no proper response. Whereas the A.O find that the assessee society is not eligible for claim of deduction under section 80P of the Act, hence the AO considering the information available on record has invoked the provisions of Sec.144 of the Act and denied the claim of deduction u/sec80P(2)(d) of the Act of Rs.34,74,257/- and after setting off of current year business loss has assessed the total income of Rs.28,26,199/- and passed the order u/sec 144 r.w.s 144B of the Act dated 16.09.2022.
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 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
We heard the Ld.DR submissions and perused the material on record and none appeared on behalf of the assesse. 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 referred at Pag 2 Para 4of 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 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
In the result, the appeal filed by assesse is allowed for statistical purposes.
Order pronounced in the open court on 04.04.2025.