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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Feeling aggrieved by appeal-order dated 11.10.2023 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”], which in turn arises out of assessment-order dated 24.09.2019 passed by learned ITO, Betul [“AO”] u/s 144 of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”]
ITANo.475/Ind/2023 Adim Jati Seva Sahakari Samiti ,Bijadeshi 2017-18, the assessee has filed this appeal on the grounds mentioned in Form No. 36 (Appeal Memo).
Ld. AR for assessee has filed a brief synopsis in writing and also made oral submissions. He submitted that the assessee is a primary agricultural credit co-operative society involved in facilitating credit to farmers and sale of fertilizer to farmers. In the regular course of its activities, the society collects the loans and sale proceeds from its member-farmers and deposits moneys in Current A/c opened with District Central Bank. All the transactions have been duly recorded in the books of account of the society. Ld. AR has further submitted that the assessee-society has been founded by Government of Madhya Pradesh with an objective to serve the poor farmers and its affairs are being audited by the Government Co-operative Department. He has also pointed out that the day to day affairs of assessee-society are managed by officials appointed as Administrator of the Co-operative Ministry of Government of Madhya Pradesh. Since there is a change of Government-appointed Administrator from time to time, the assessee could not participate in the assessment proceedings as well as in the proceedings before CIT(A) due to lack of communication. Thus, Ld. AR has submitted that the ex-parte order passed by the CIT(A) may be set aside and the matter may be remanded to the record of AO for a fresh adjudication after considering the relevant record and details as well as duly audited books of account of assessee.
ITANo.475/Ind/2023 Adim Jati Seva Sahakari Samiti ,Bijadeshi 3. Ld. DR for revenue has not seriously objected to the prayer of assessee for setting aside the matter to the record of the AO for fresh adjudication.
However, he prayed that the assessee should be directed to extend co- operation to AO and make representation when called for.
We have considered submissions of both sides as well as relevant material on record. The CIT(A) has dismissed assessee’s first-appeal and upheld AO’s order when there was no response from assessee to the notices issued by it. Since the AO has passed an ex-parte order without considering the relevant record, particularly the books of account of assessee, and AO’s order has been confirmed by CIT(A) due to non-response by assessee during first appellate proceeding, it is clear that the relevant record has not been examined by the lower authorities while making/upholding additions.
Accordingly in the facts and circumstances of the case and in the interest of justice we set aside the orders of lower authorities and remand this matter to AO for a proper verification and examination of the relevant record including books of account of assessee and then pass a fresh order. The assessee is also directed to ensure participation in the hearings fixed by AO and do not seek unnecessary adjournments.
ITANo.475/Ind/2023 Adim Jati Seva Sahakari Samiti ,Bijadeshi
In the result, this appeal is allowed for statistical purposes.
Order pronounced in open court on 09.04.2024.