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Facts
The assessee, a cooperative society, filed its return claiming a deduction under Section 80P, resulting in nil income. The Assessing Officer denied this deduction, leading to an assessment order under Section 143(3), which was subsequently confirmed ex-parte by the CIT(A) due to the assessee's non-compliance during the appeal proceedings.
Held
The Tribunal observed that the CIT(A) dismissed the appeal ex-parte for non-appearance. Recognizing the principles of natural justice and the possibility of valid reasons for non-compliance, the Tribunal set aside the CIT(A)'s order. The case was remitted back to the CIT(A) to adjudicate the issues afresh, providing the assessee another opportunity to present its case.
Key Issues
The key issues were the justification of the CIT(A) dismissing the appeal ex-parte and the denial of the deduction claimed by the cooperative society under Section 80P of the Income Tax Act.
Sections Cited
143(3), 250, 80P, 142(1), 80P(2)(a)(i)
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Income Tax Appellate Tribunal, PANAJI BENCH
Before: SHRI PAVAN KUMAR GADALE & SHRI G D PADMAHSHALIShri Ramachandra Pattina
ORDER PER BENCH: The three appeals are filed by the assesse against the separate orders of the National Faceless Appeal Centre (NFAC)/ CIT(A) passed u/sec143(3) and u/ 250 of the Act. 2. Since issues involved in these appeals are common and identical, hence they are clubbed, heard and a consolidated order is passed. For the sake of convenience, we shall take up A.Y 2018-19 as lead case and facts narrated. The assesse has raised the
The brief facts of the case are that, the assessee is a cooperative society and has filed the return of income for the A.Y 2018-19 on 09.10.2018 disclosing a total income of Rs.Nil/- after claiming deduction u/sec 80Pof the Act of Rs.31,86,727/-.Subsequently the case was selected for limited scrutiny under CASS and notice u/sec142(1) of the Act was 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 denied the claim of deduction u/sec80P2(a)(i) of the act and assessed the total income of Rs 31,86,730/- and passed the order u/sec 143(3) of the Act dated 20.04.2021.
Aggrieved by the order, the assessee 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
1. 5. 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 dismissed the appeal ex-parte confirming the action of the assessing officer. The CIT(A) has issued the notices of hearing referred at Page 8 Para 5 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 addition made by the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the facts Shri Ramachandra Pattina Sahakari Sangha NiyamitKumta. 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) and remit the entire disputed issues 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 assessee for statistical purposes.
In the result, the appeal filed by assessee is allowed for statistical purposes.
&264/PAN/2024 A.Ys. 2017-18 & 2020-21.
As the facts and circumstances in these two appeals are identical to A.Y 2018-19 (except variance in figures) and the decision rendered in above paragraph 6&7 would apply mutatis mutandis for these appeals also. Accordingly, we allow the grounds of appeal of the assesse for statistical purposes.
In the result, the three appeals filed by the assessee are allowed for statistical purpose.