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Facts
The assessee, a cooperative society, claimed deduction under section 80P in its return of income. The Assessing Officer (AO) disallowed the claim and passed an assessment order under section 143(3). The assessee's appeal before the CIT(A) was dismissed for non-prosecution.
Held
The Tribunal noted procedural deficiencies, including the AO's incorrect treatment of the assessee as a bank and disregard for statutory provisions. The CIT(A)'s dismissal for non-prosecution without a proper order was also found problematic. Consequently, the matter was remanded to the CIT(A) for fresh adjudication.
Key Issues
Whether the assessee is eligible for deduction under section 80P, and the validity of the appellate order passed for non-prosecution without proper adherence to legal requirements.
Sections Cited
143(3), 80P, 250(6)
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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI
आदेश/ O R D E R
Per B.M. Biyani, A.M.:
Feeling aggrieved by order of first-appeal bearing DIN: ITBA/APL/S/250/2024-25/1073849333(1) dated 28.02.2025 passed by learned Commissioner of Income-Tax (Appeals)-Addl./JCIT(A)-4, Mumbai [“CIT(A)”] which in turn arises out of assessment-order dated 31.10.2019 passed by learned ITO-1, Ratlam [“AO”] u/s 143(3) of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2017-18, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36).
The background facts leading to present appeal are such that the assessee, a co-operative society, filed its return of income of AY 2017-18 u/s 139 declaring a total income of Rs. Nil after claiming deduction u/s 80P. The case of assessee was selected for scrutiny-assessment and the AO issued statutory notices u/s 143(2)/142(1) which were complied by assessee.
Ultimately, the AO passed assessment-order dated 31.10.2019 u/s 143(3) denying deduction u/s 80P and thereby assessing total income at Rs. 20,95,570/-. Aggrieved, the assessee carried matter in first-appeal but the CIT(A) dismissed assessee’s appeal for non-prosecution. Now, the assessee has approached this Tribunal.
Ld. AR assessee at first submits that the section 250(6) of the Income- tax Act, 1961 provides “The order of the Commissioner (Appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision.”. He further submits that in present case, the Ld. CIT(A) has dismissed assessee’s first appeal although due to non-prosecution by assessee on the dates of hearing but still without complying with the mandate of section 250(6).
Ld. AR has also filed a “Written-Submission” as well as an “Application for additional evidences”; these are scanned and re-produced below:
Written-Submission: Page 2 of 10 Vrahatakar Sahakari Sanstha Maryadit AY 2017-18 Page 3 of 10 Vrahatakar Sahakari Sanstha Maryadit - AY 2017-18 Page 4 of 10 Vrahatakar Sahakari Sanstha Maryadit AY 2017-18 Page 5 of 10 Vrahatakar Sahakari Sanstha Maryadit - AY 2017-18 Page 6 of 10
Finally, Ld. AR prays that the impugned first appeal-order passed by Ld. CIT(A) may be set aside and this matter may be restored to CIT(A) for a proper adjudication. Ld. AR acknowledges that the assessee is ready and willing to make a proper representation before CIT(A).
Ld. DR for revenue agrees with the submissions and prayer of Ld. AR but makes a request to direct the assessee to represent his case before CIT(A) and do not seek unnecessary adjournments.
In view of above submissions of parties; having regard to the principle of natural justice and also bearing in mind that no prejudice would be caused to revenue if the present matter is restored at the level of CIT(A), we remand this matter back to the file of CIT(A) for adjudication afresh. The CIT(A) shall give necessary opportunity of hearing to assessee and pass an appropriate order uninfluenced by his earlier order. The assessee is also directed to remain vigilant and ensure participation in the hearings as may be fixed by CIT(A) and do not seek unnecessary adjournments failing which the CIT(A) shall be at liberty to pass appropriate order in accordance with law. Ordered accordingly.
Resultantly, this appeal is allowed for statistical purpose.
Order pronounced in open court on 22/01/2026