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Facts
The assessee appealed against the order of NFAC for AY 2016-17, which had dismissed the appeal ex-parte due to non-response to notices. The assessee filed the appeal before the ITAT with a delay of 192 days.
Held
The Tribunal condoned the delay, finding sufficient reason for the belated filing due to a fraud committed by earlier employees and subsequent scattering of records. The issue regarding the disallowance of deduction under section 80P(2)(a)(i) was remitted back to the NFAC for fresh consideration.
Key Issues
Whether the delay in filing the appeal should be condoned and whether the disallowance of deduction claimed by the assessee was justified.
Sections Cited
80P(2)(a)(i)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C’’ BENCH: BANGALORE
Before: SHRI GEORGE GEORGE K. & SHRI CHANDRA POOJARI
Date of Hearing : 14.02.2024 Date of Pronouncement : 14.02.2024 O R D E R
PER CHANDRA POOJARI, ACCOUNTANT MEMBER:
This appeal by assessee is directed against order of NFAC for the assessment year 2016-17 dated 12.5.2023 passed u/s 250 of the Income Tax Act, 1961 (in short “The Act”). The assessee has raised following grounds of appeal:
1. The CIT(A) erred in upholding the order of the AO disallowing the claim of deduction u/s 80P(2)(a)(i)
2. The CIT(A) failed to note that the Karnataka Co operative societies Act 1959, under which -the appellant is registered, defines the term member as to include nominal and associate members and as such the ratio of the decision of Hon'ble Supreme Court in the case of Citizen Co-op Credit Society Ltd Vs ACIT C-9{1) Hyderabad in Civil Appeal No 10245 of 2017{Arising out of Civil Appeal No 20044 of 2015} dated 8.8.2017, relied upon by the AO, was not applicable to the case of the appellant.
Kanakadas Pattina Sahakari Sangh Niyamit Badami Page 2 of 4
3. Each of the above grounds is without prejudice to one another and the appellant craves leave to add, delete, amend or otherwise modify or withdraw one or more of the above grounds either before or at the time of hearing of this appeal.
There was a delay of 192 days in filing the appeal before this Tribunal. The assessee has explained the delay before us by a condonation petition as follows:
Kanakadas Pattina Sahakari Sangh Niyamit Badami Page 3 of 4
We have carefully gone through the condonation petition filed by assessee. We find that there is a good and sufficient reason in filing the appeal belatedly before this Tribunal. Accordingly, in the interest of justice, we condone the delay and admit the appeal for adjudication.
It is noted that the grievance of assessee in this appeal is with regard to passing ex-parte order confirming the addition made by ld. AO denying the exemption claimed by assessee u/s 80P(2)(a)(i) of the Kanakadas Pattina Sahakari Sangh Niyamit Badami Page 4 of 4 Act. The ld. CIT(A) has dismissed the appeal ex-parte on the reason that assessee has not responded to the various notices issued to the assessee and filed no written submission before NFAC. We strongly deprecate non-cooperation attitude of assessee in non-filing the written submission before NFAC. However, in the interest of justice and equity, we are of the view that assessee ought to be provided with one more opportunity to present its case and accordingly, issue in dispute is remitted to the file of NFAC for fresh consideration and to decide the same, after giving an opportunity of hearing to the assessee. 5. In the result, appeal of the assessee is partly allowed for statistical purposes.