Loading judgment…
Facts
The appeal was filed against an ex-parte order passed by the CIT(A) due to non-compliance by the assessee. There was a delay of 25 days in filing the appeal, which the assessee attributed to preoccupation with the finalization of their statutory audit.
Held
The Tribunal condoned the delay, finding sufficient force in the assessee's arguments and upholding the right to a hearing. The core issue revolved around the denial of deduction under Section 80P and the treatment of interest income from a cooperative bank.
Key Issues
Whether the delay in filing the appeal should be condoned, and whether the assessee is eligible for deduction under Section 80P and for the interest income from the cooperative bank to be treated as exempt.
Sections Cited
80P
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI SS VISWANETHRA RAVI & SHRI AMITABH SHUKLA
आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed against the order bearing DIN & Order No.ITBA/NFAC/S/250/2023-24/1063022801(1) dated 20.03.2024 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment year 2013-14. Through the aforesaid appeal the assesse has challenged order u/s 250 dated 20.03.2024 passed by NFAC, Delhi.
2.0 It is seen from records that there is delay of 25 days in the filing of this appeal. An affidavit has been filed conveying that the secretary of the appellant Co-operative Society was preoccupied with finalization of statutory audit contributing to delay in filing of the appeal. The Ld. Counsel for the assesse accordingly prayed for condonation of the delay and adjudication of the appeal. We find sufficient force in the assessee’s arguments. No appellant gains by non-prosecution of its case and reasonable opportunity of being heard is a natural right of every litigant. The delay in filing the appeal is therefore condoned and the appeal is being adjudicated as under. 3.0 Perusal of the grounds of appeal indicates that the principle issue at the base of the controversy is denial of reduction u/s 80P of the Act as well as treatment of interest income received from Central Co- operative Bank. The Ld. Counsel for the assesse placed reliance upon a catena of judicial pronouncements indicating its suitability for grant of deduction u/s 80P as well as treatment of interest income received from Central Co-operative Bank as exempt. In support of its contentions the Ld. Counsel for the assesse placed several documents in the form of a paper book. The Ld. DR informed that the order of Ld. First Appellate Authority dated 20.03.2024 is an ex-parte order on account of non- compliance by the assesse and that the purported documents, now filed, through paper book were never put up for consideration of the Ld. First Appellate Authority. 4.0 We have heard rival submissions in the light of material available on records. In the contemporaneous scheme of things prescribed under the Income Tax Act a Commissioner of Income Tax (Appeals) or a joint / additional Commissioner of Income Tax (Appeals) is designated appellate authority to ordinarily attend to grievances of a Taxpayer as Ld. First Appellate Authority. The impugned authorities have been vested with power of examining facts of the case in the light of statutory provisions, judicial pronouncements etc., once an assesse challenges an order of assessment. Para-5 on Page-4 of the order of Ld. First Appellate Authority dated 20.03.2024 Supra, vividly demonstrates that the appellant assesse was accorded several opportunities from Jan-2021 to March- 2024 which remained uncomplied compelling the Ld. Commissioner of Income Tax (Appeals) to pass ex-parte order. Thus seen the documents placed now in the form of a paper book were never considered by the Ld. First Appellate Authority. However, in the interest of natural justice, we are of the view that to do substantial justice one more opportunity be provided to the assesse to represent the true and clear facts before the Ld.CIT(A) and hence, we set aside his orders and remand the back matter for re adjudication after considering all the documents filed by the 4 -: assesse and giving him an opportunity of being heard. The said remission is however subject to the assesse paying a cost of Rs.2500/-(two thousand five hundred only) to be paid to the Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras on or before 31.10.2024. The assesse will pay this cost and produce the receipt before the Ld. CIT(A). 5.0 The grounds of appeal raised by the assesse are therefore allowed for statistical purposes. 6.0 In the result the appeal is allowed. Order pronounced on 11th, September-2024 at Chennai.