P.E.64 KODUMUDI BLOCK T AND P SERVANTS CO-OP T AND C SOCIETY LIMITED,ERODE vs. THE INCOME TAX OFFICER, WARD 2(1) ERODE, ERODE
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Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI MAHAVIR SINGH & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeals filed by the assessee for Assessment Years 2018-19 are against the orders of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 14.03.2024 & 31.05.2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s.144 r.w.s 144B of the Income Tax Act, 1961 (hereinafter “the Act”) on 29.04.2021.
ITA Nos.1896 & 1897/Chny/2024 :- 2 -:
There is a delay of 60 days in filing the appeal by the assessee
in ITA No.1896/Chny/2024. The assessee has filed condonation
petition stating the reasons for delay in filing the appeal. We have
considered the petition of delay in filing the appeal and satisfied that
there was sufficient cause for not filing the appeal within the prescribed
time limit. Hence, the delay is condoned accordingly.
ITA No.1896/Chny/2024
The only effective ground of appeal in this appeal of assessee is
against confirming the cash deposit of Rs. 96,91,399/- by the Ld.
CIT(A).
The assessee is a co-operative society and filed return of income
electronically on 28.09.2018 declaring total income at Nil after claiming
exemption u/s. 80P of the Act. The case was selected for scrutiny and
notices were issued u/s. 142(1) of the Act but the assessee has not
complied with the notices. The A.O therefore, passed order u/s. 144 of
the Act adding the cash deposit in the total income. The Ld. CIT(A)
has issued notice on 28.09.2022 and 22.02.2024, but the assessee
has not availed the opportunity and therefore, the Ld. CIT(A) has
passed ex-parte order confirming the addition made by A.O.
ITA Nos.1896 & 1897/Chny/2024 :- 3 -:
The Ld. Authorized Representative (A.R) of the assessee before
us has submitted that cash deposit is from members and submitted
copy of day book, bank statement and audit report in support of its
contention. The Ld AR requested that one more opportunity may be
provided to explain before the Ld AO in the interest of justice as the
assessment order and order of Ld. CIT(A) have been passed ex-parte.
The Ld. Departmental Representative (DR), on the other hand,
has argued that the assessee has been non-complied before A.O as
well as Ld. CIT(A) therefore, the assessee’s prayer should be rejected
or cost may be imposed.
We have heard the rival submissions, and perused the materials
available on record. The assessment order in this case has been
passed u/s. 144 of the Act and the Ld. CIT(A) has also passed order
ex-parte confirming the addition of unexplained cash credits of
Rs.96,91,399/-. We find that the assessee has been negligent and non
cooperative before the A.O as well as Ld. CIT(A). We, therefore of the
opinion that keeping in view the principles of natural justice, the
assessee be provided with another opportunity of hearing to
substantiate his case before the A.O subject to payment of costs of
ITA Nos.1896 & 1897/Chny/2024 :- 4 -:
Rs. 25,000/-. The same shall be paid by the assessee to Tamil Nadu
State Legal Services Authority at Hon’ble High Court of Madras within
a period of one month from the date of receipt of this order and
produce the receipt before the A.O. Accordingly, we set aside the
order passed by the A.O and remit the matter back to the file of the
A.O to adjudicate this appeal afresh in accordance with law, after
giving reasonable opportunity to the assessee. We also direct the
assessee to appear before the A.O on the date of hearing without fail.
In view of the above, the appeal filed by the assessee is allowed for
statistical purposes.
ITA No.1897/Chny/2024:
The A.O has levied penalty u/s 271AAC in respect of addition of
cash deposit made u/s. 58 of the Act in the assessment order. As we
have already set aside the assessment order, the penalty levied u/s.
271AAC(1) of the Act also set aside as it does not have leg to stand.
However, we clarify that the A.O will be free to initiate fresh penalty
during set aside proceeding. In view of this, the appeal filed by the
assessee is allowed for statistical purposes.
ITA Nos.1896 & 1897/Chny/2024 :- 5 -:
In the result, both the appeals filed by the assessee are allowed for statistical purposes.
Order pronounced in the Open Court on 24th October, 2024.
Sd/- Sd/- (महावीर िसंह) (जगदीश) (Jagadish) (Mahavir Singh) उपा� / Vice President लेखा सद�य लेखा सद�य /Accountant Member लेखा लेखा सद�य सद�य चे�नई/Chennai, �दनांक/Dated: 24th October, 2024. EDN/- आदेश क� �ितिल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकर आयु�/CIT, Coimbatore 4. िवभागीय �ितिनिध/DR 5. गाड� फाईल/GF
