G K 276 MUTHIYALPET PRIMARY AGRICULTURE CO OP CREDIT SOCIETY LIMITED,KANCHIPURAM vs. ITO, WARD 1, KANCHIPURAM, KANCHIPURAM
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Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI
Before: SHRI V. DURGA RAO, HON’BLE & SHRI MANJUNATHA. G, HON’BLE
आदेश / O R D E R PER MANJUNATHA.G, AM:
This appeal filed by the assessee is directed against the order of the
Commissioner of Income Tax (Appeals), Income Tax Department, National
Faceless Appeal Centre (NFAC), Delhi, dated 27.09.2023, and pertains to
assessment year 2020-21.
The assessee has raised the following grounds of appeal:
ITA No.1361/Chny/2023 :: 2 ::
The order passed by the Learned CIT (A), is opposed to law and contrary to the facts and circumstances of the case and is therefore unsustainable. 2. Both the learned assessing officer and the learned CIT(A) erred in passing the order without appreciating the status of the appellant and its nature of business. 3. Both the Ld. Assessing officer and the Learned CIT(A) failed to appreciate that appellant being a primary agricultural cooperative credit society, is eligible for deduction u/s.80P of the Act. 4. The Ld. Assessing officer also failed to appreciate that the purpose and object of Section 80P is to encourage and incentivize the Cooperative movement by providing special deductions under the Income Tax Act. 5. The appellant, being entitled for deduction u/s.80P of the Act, pleads for an opportunity to explain its case before your good self. 6. The Appellant seeks your leave to add, alter, amend or delete any grounds urged, at the time of hearing.
Brief facts of the case are that the assessee is a Primary Agriculture
Co-Op. Credit Society, filed its return of income for the assessment year
2020-21 on 15.02.2021 declaring NIL total income after claiming deduction
u/s.80P(2)(a)(i) of the Income Tax Act, 1961, (in short “the Act"). The
case was selected for scrutiny to verify the large deduction claimed under
Chapter-VIA of the Act. During the course of assessment proceedings,
various notices were served on the assessee calling for necessary details.
The assessee nether appeared nor furnished details to justify deduction
claimed u/s.80P(2)(a)(i) of the Act. Therefore, the AO passed best
judgment assessment u/s.144 r.w.s.144B of the Act, and denied deduction
claimed u/s.80P(2)(a)(i) of the Act. The assessee carried the matter in
appeal before the First Appellate Authority, but neither appeared nor
furnished any details which is evident from Para No.4 of the order of the
Ld.CIT(A), where the First Appellate Authority has provided ‘six’
opportunities to the assessee, but there is no response. Therefore, the
ITA No.1361/Chny/2023 :: 3 ::
Ld.CIT(A) dismissed the appeal filed by the assessee and upheld the
additions made towards rejection of deduction claimed u/s.80P(2)(a)(i) of
the Act.
None appeared for the assessee. We have heard the Ld.DR and
perused the materials available on record and gone through the orders of
the authorities below. Admittedly, the assessment proceedings are ex
parte for non-appearance of the assessee. The proceedings before the
First Appellate Authority is also ex parte, because, assessee neither
appeared nor furnished any details. The assessee is a non-cooperative at
all stages of proceedings. Therefore, we cannot find fault with the lower
authorities in denying deduction claimed u/s.80P(2)(a)(i) of the Act. It is
also an admitted fact that the assessee should be vigilant and prosecute
their case with utmost care. In case, the assessee is not serious in
prosecuting their appeal, then the appellate authorities left with no choice
to dispose off the appeal. In the present case, the Ld.CIT(A) has dismissed
the appeal filed by the assessee and decided the issue on the basis of
materials available on record. Therefore, in our considered view, there is
no error in disposal of appeal by the Ld.CIT(A). But, fact remains that the
assessee did not get proper opportunities either before the AO or before
the First Appellate Authority. Therefore, considering the facts and
circumstances of the case and also fact that the assessee is a Primary
Agriculture Co-operative Credit Society and operates mostly in rural areas,
we are of the considered view that one more opportunity of hearing needs
ITA No.1361/Chny/2023 :: 4 :: to be given to the assessee to explain its case. Thus, we set aside the order of the Ld.CIT(A) and restore the issue to the file of the AO and direct the AO to decide the issue afresh in accordance with law after providing reasonable opportunities of hearing to the assessee. Needless to say, the assessee shall appear before the AO and furnish necessary details without seeking any adjournment.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on the 29th day of January, 2024, in Chennai.
Sd/- Sd/- (वी. दुगा� राव) (मंजूनाथा.जी) (MANJUNATHA.G) (V. DURGA RAO) लेखा सद /ACCOUNTANT MEMBER �ाियक सद /JUDICIAL MEMBER चे�ई/Chennai, िदनांक/Dated: 29th January, 2024. TLN आदेश की %ितिलिप अ/ेिषत/Copy to: 1. अपीलाथ$/Appellant 3. आयकर आयु0/CIT 5. गाड� फाईल/GF 2. %&थ$/Respondent 4. िवभागीय %ितिनिध/DR
