UNNAT KRISHI SAHKARI SANSTHA MARYADIT,DEWAS vs. ACIT, DELHI
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Income Tax Appellate Tribunal, INDORE SMC BENCH, INDORE
This appeal by the Assessee is directed against the order dated 30.10.2023 of Commissioner of Income Tax(Appeal), National Faceless Appeal Centre, Delhi for Assessment Year 2018-19. The assessee has raised following grounds of appeal:
“1The Ld. CIT(A) erred in law and on facts of the case passed an order on ex parte basis without giving the assessee the opportunity of being heard.
2 The Ld. CIT(A) erred in law and facts of the case by assessing income on ITR of the invalid return which is construe as not filed return as such assessment made is bad in law. Page 1 of 4
ITA No.519/Ind/2023 SMC-Unnat Krishi Sahkari Sanstha Maryadit Page 2 of 4 3 The Ld. CIT(A) has erred in law and facts of the case and assessed the total income at Rs. 45,01,576/- as against the returned income of Nil.
4 The Ld. CIT(A) erred in law and facts of the case and made an addition of Rs. 45,01,576/- on account of section 80P under chapter VI-A of the Income Tax Act, 1961 as is admissible deduction to a co- operative society. The addition therefore made is totally wrong and without considering the facts of the case.
5.That the appellant craves to leave add alter or amend any of the ground at or before hearing.”
The Ld. AR of the assessee has submitted that the AO while passing
assessment order u/s 144 has disallowed the claim of deduction u/s
80P(2)(d) on account of interest income received from deposit in
Cooperative Bank. He has further submitted that this issue is covered by
the decisions of this tribunal in favour of the assessee. The CIT(A) has also
passed the impugned order ex-parte when there was no participation on
behalf of the assessee. Thus, Ld. AR has submitted that the impugned
order of the CIT(A) be set aside and the matter may be remanded to the
record of the AO for fresh adjudication after considering details of interest
income earned on the deposits in the Cooperative Bank and in view of the
various decisions of this Tribunal.
On the other hand, ld. DR has not raised any serious objection if
matter is remanded to the record of the AO for fresh adjudication after
considering relevant details and evidence to be produced by the assessee.
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ITA No.519/Ind/2023 SMC-Unnat Krishi Sahkari Sanstha Maryadit Page 3 of 4 4. I have considered the rival submissions as well as relevant material
on record. The AO while passing ex-parte assessment order u/s 144 of the
Act has denied the claim of deduction u/s 80P(2)(d) of the Act in respect of
the interest income of the assessee including interest received from
Cooperative Bank and also denied the claim of deduction u/ s 80P in
respect of the business income declared by the assessee for want of
necessary details and evidence. The CIT(A) has confirmed the additions
made by the AO by denying the deduction u/s 80P of the Act in para 5.1
as under:
“5.1. I find that one of the reasons for selection of the case for scrutiny was to verify the claim of deduction under chapter VIA. The appellant did not co-operate with assessment proceedings and the AO disallowed the claim of deduction u/s 80P. During appellate proceedings also the appellant was afforded several opportunities to substantiate its claim of deduction. However, in the absence of any response, I compelled to dismiss the appeal of the appellant. "Vigilantibus non dormientibus iura subveniunt" Laws aid those who are vigilant and not those who sleep.”
Thus, the appeal of the assessee was dismissed due to non-
prosecution as there was no response by the assessee to the various
notices issued by the CIT(A). Since the entire income of the assessee
including business income as well as interest income has been assessed to
tax by the AO after disallowing deduction u/s 80P of the Act for want of
necessary details and the CIT(A) has dismissed the appeal of the assessee
for non-prosecution therefore, in the facts and circumstances of the case
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ITA No.519/Ind/2023 SMC-Unnat Krishi Sahkari Sanstha Maryadit Page 4 of 4 and in the interest of justice the impugned order of the CIT(A) is set aside and matter is remanded to the record of the AO for fresh adjudication. The assessee is directed to produce the relevant details and evidences for verification and consideration of the AO. Needless to say the assessee be given an appropriate opportunity of hearing before passing fresh order.
In the result, the appeal of assesse is allowed for statistical purposes.
Order pronounced in the open court on conclusion of hearing on 19.02.2024.
Sd/- (VIJAY PAL RAO) JUDICIAL MEMBER Indore; �दनांक Dated : 19/02/2024
Patel/Sr. P.S. Copy to: Assessee/AO/Pr. CIT/ CIT (A)/ITAT (DR)/Guard file.
By order Sr. Private Secretary
ITAT, Indore
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