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Facts
The assessee, a cooperative society, filed appeals against assessment and penalty orders for Assessment Years 2018-19 and 2020-21. The appeals faced delays, which were condoned by the Tribunal. The primary contention was that the assessee was not granted adequate opportunity of being heard by the lower authorities.
Held
The Tribunal found merit in the assessee's contention that the matter required fresh examination due to lack of proper opportunity. Consequently, the assessment orders for AY 2018-19 and AY 2020-21 were set aside and restored to the Assessing Officer for fresh adjudication. The penalty orders, being consequential to the assessment orders, were rendered infructuous.
Key Issues
Whether the assessee was denied adequate opportunity of hearing by the lower authorities, and consequently, whether the assessment and penalty orders should be set aside.
Sections Cited
143(3), 270A, 271AAC(1), 272A(1)(d)
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Income Tax Appellate Tribunal, “PATNA BENCH, PATNA
Before: Shri Sonjoy Sarma & Shri Rakesh Mishra
order
: January 09, 2026 आदेश / ORDER
Per Sonjoy Sarma, Judicial Member:
The captioned appeals filed by the assessee is directed against the orders dated 07.04.2025 passed by the CIT(A)-Patna u/s 250 of the Income Tax Act, 1961 (the ‘Act’). Since all the above appeals have been filed by the same assessee, involve common facts, and arise out of related assessment and penalty proceedings, they were heard together and are being disposed of by this consolidated order for the sake of convenience.
There are delays in filing of the appeals, as under:
434/Pat/2025 Vaishal Patliputra Dugdh Utpadak Sahkari Sangh Ltd 429/Patna/2025 84 delay 430/Patna/2025 84 delay 431/Patna/2025 296 days 432/Patna/2025 175 days 433/Patna/2025 175 days 434/Patna/2025 175 days
Separate condonation of delay petitions has been filed explaining the reasons for delay. After considering the reasons stated therein, we are satisfied that sufficient cause exists. Accordingly, the delays are condoned, and the appeals are admitted for adjudication.
First we take ITA No. 429/Patna/2025. Brief Facts of the case are that the assessee is a co-operative society engaged in processing and manufacturing of milk and milk products. For Assessment Year 2018– 19, the assessee filed its return of income declaring total income of ₹9,31,77,540. The assessment was completed under section 143(3) read with sections 143(3A) and 143(3B) of the Income-tax Act, 1961, determining total income at ₹14,14,46,876, by treating interest income of ₹4,82,69,336 as taxable, and denying deduction claimed under section 80P of the Act.
Aggrieved, the assessee preferred an appeal before the Ld. CIT(A). It was contended that adequate opportunity of being heard was not granted, and the appeal was disposed of without proper appreciation of facts. The Ld. CIT(A) confirmed the assessment.
434/Pat/2025 Vaishal Patliputra Dugdh Utpadak Sahkari Sangh Ltd 6. Aggrieved, the assessee is in appeal before the Tribunal. At the time of the hearing the Ld. AR submitted that the assessee did not get a proper opportunity to present its case before the Ld. CIT(A), and therefore, in the interest of justice, the matter deserves to be restored to the file of the Assessing Officer for fresh adjudication.
On the other hand, the Ld. DR supported the orders of the lower authorities.
We after considering the rival submissions and material on record, we find merit in the contention of the assessee that the matter requires fresh examination. Considering the nature of issues involved, we deem it appropriate to set aside the impugned order and restore the matter to the file of the Assessing Officer, with a direction to decide the issue afresh after providing adequate opportunity of being heard to the assessee. Accordingly, is allowed for statistical purposes. relates to penalty under Section 270A for the A.Y 2018–19. This appeal arises out of the penalty imposed under section 270A, which is consequential to the assessment order challenged in ITA No. 429/Patna/2025. Since the quantum assessment itself has been set aside, the penalty order does not survive. Accordingly, the penalty order is rendered infructuous. However, it is clarified that after completion of fresh assessment, the Assessing Officer shall be at liberty to initiate penalty proceedings in accordance with law, if so advised. Thus, is rendered infructuous. this appeal, the grievance of the assessee is that the assessment order was passed without condoning 434/Pat/2025 Vaishal Patliputra Dugdh Utpadak Sahkari Sangh Ltd delay and without proper adjudication of the assessee’s submissions. Considering that the matter requires factual verification and proper adjudication, and in the interest of justice, we set aside the impugned order and restore the issue to the file of the Assessing Officer, with a direction to decide the matter afresh after granting reasonable opportunity of being heard. Accordingly, is allowed for statistical purposes. relates to penalty under section 271AAC(1), relates to penalty under section 270A and relates to penalty under section 272A(1)(d) of the Act. All these penalties arise from the assessment order for AY 2020–21, which has already been set aside in ITA No. 431/Patna/2025.Therefore, the penalty orders have no legs to stand and are accordingly rendered infructuous. It is clarified that the Assessing Officer may initiate fresh penalty proceedings, if warranted, after passing the fresh assessment order in accordance with law. Accordingly, ITA Nos.432, 433 & 434/Patna/2025 are rendered infructuous.
& 431/Patna/2025 are allowed for statistical purposes whereas 432, 433 & 434/Patna/2025 are rendered dismissed as infructuous. Kolkata, the 9th January, 2026. Sd/- Sd/- [Rakesh Mishra] [Sonjoy Sarma] लेखा सद�य/Accountant Member �या�यक सद�य/Judicial Member Dated: 09.01.2026. RS 434/Pat/2025 Vaishal Patliputra Dugdh Utpadak Sahkari Sangh Ltd Copy of the order forwarded to: 1. Appellant - 2. Respondent - 3.CIT (A)- 4. CIT- , 5. CIT(DR),