KUDACHI STATION VIVIDODDHESHA PRATHAMIK GRAMEEN KSSN KUDACHI,BELAGAVI vs. INCOME TAX OFFICER WARD 4 BELGAUM, BELGAUM
Facts
The assessee, a cooperative credit society, filed a nil return claiming deduction under Section 80P for AY 2017-18. The AO denied the deduction and assessed total income at Rs. 7,68,966/-. The CIT(A) dismissed the assessee's appeal ex-parte due to non-compliance with hearing notices.
Held
The Tribunal set aside the CIT(A)'s ex-parte order, remitting the disputed issue back to the CIT(A) for fresh adjudication. The assessee is to be provided with an adequate opportunity of hearing to substantiate its case with evidence, upholding the principles of natural justice.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal ex-parte without providing sufficient opportunity, and whether the assessee is entitled to 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.43/PAN/2025 (A.Y. 2017-18 ) Kudachi StationVividoddhesha Vs I.T.O Ward-4, Prathamik Grameen Kssn Civil Hospital Road, . Kudachi, Belgaum-590001. At Post Kudachi, Karnataka. Talraibag, Belgaum-591311, . Karnataka. PAN .No.AAAAK4453E (अपीलाथ�/Appellant) (��यथ�/Respondent)
Assessee by Sri.Chetan Choughle. AR Revenue by Smt.Rijula Uniyal.Sr.DR
सुनवाई क� तार�ख/Date of Hearing 02.04.2025 घोषणा क� तार�ख/Date of Pronouncement 03.04.2025 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of Addl/JCIT(A)-Panchkula 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
2 ITA. No. 43/PAN/2025 Kudachi Station Vividoddhesha Prathamik Grameen Kssn Kudachi. income for the A.Y 2017-18 on 21.02.2018 disclosing a total income of Rs.Nil/- after claiming deduction u/sec 80P 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 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.7,68,966/- and passed the order u/sec 143(3) of the Act dated 06.12.2019.
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.
3 ITA. No. 43/PAN/2025 Kudachi Station Vividoddhesha Prathamik Grameen Kssn Kudachi. 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).
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 4 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
4 ITA. No. 43/PAN/2025 Kudachi Station Vividoddhesha Prathamik Grameen Kssn Kudachi. 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 the assessee is allowed for statistical purpose.
Order pronounced in the open court on 03.04.2025.
Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 03/04/2025
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. 43/PAN/2025 Kudachi Station Vividoddhesha Prathamik Grameen Kssn Kudachi.
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. Approved Draft comes to the 5. 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
