FACT EMPLOYEES CO-OPERATIVE CREDIT SOCIETY LIMITED NO E663,ERNAKULAM vs. ITO, WARD-1, ALUVA

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ITA 394/COCH/2024Status: DisposedITAT Cochin28 October 2024AY 2020-2021Bench: SHRI WASEEM AHMED (Accountant Member), SHRI SOUNDARARAJAN K. (Judicial Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(A)'s order and remitted the issue back to the CIT(A) for a decision on merits. This was based on the assessee's explanation for non-appearance and the fact that the CIT(A) had not adjudicated the issue on merits.

What were the facts?

The assessee, a co-operative credit society, claimed deduction under Section 80P. The assessment was completed ex-parte under Section 144, disallowing the deduction. The appeal before the CIT(A) was dismissed for non-prosecution due to the assessee's failure to respond to notices.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal for non-prosecution without considering the merits, and whether the assessee's reasons for non-appearance were valid.

Which sections of the Income-tax Act were involved?

Section 80P,Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH : COCHIN

Before: SHRI WASEEM AHMED & SHRI SOUNDARARAJAN K.

For Appellant: Shri Arun Raj S, Advocate
For Respondent: Smt. Girly Albert, Snr.DR

ORDER PER BENCH This is an appeal filed by the assessee challenging the order of the NFAC, Delhi dated 26/02/2024 in respect of the A.Y. 2020-21.

2.

The brief facts of the case are that the assessee filed their return of income in the status of Co-operative Credit Society and claimed the entire income as deduction u/s. 80P of the Act. Since the assessee had not appeared before the authorities, the assessment was completed u/s. 144 of the Act disallowing the deduction u/s. 80P(2)(a)(i) of the Act. As against the said order, the assessee filed an appeal before the Ld.CIT(A). The Ld.CIT(A) at the time of appeal proceedings, had issued several notices for which the assessee had not responded and therefore the Ld.CIT(A) had dismissed the appeal for non-prosecuting the same.

3.

As against the said ex-parte order, the assessee is in appeal before this Tribunal.

4.

At the time of hearing, the Ld.AR submitted that the assessee being a society was not well versed in the e-assessment proceedings and also notices were sent to the different email ID and therefore they are not able to view the portal and appeared before the Ld.CIT(A). The Ld.AR therefore prayed for one more opportunity to appear before the Ld.CIT(A). The Ld.DR relied on the orders of the lower authorities.

5.

We have heard the arguments of both sides and perused the materials available on record.

6.

Even though, the assessee had raised various grounds in support of their case, we are not inclined to adjudicate the same for the simple reason that the Ld.CIT(A) had no occasion to consider the issue on merits. Further the reasons stated by the assessee for the non appearance is also not disputed by the authorities. In view of the same, we are inclined to set aside the order of the Ld.CIT(A) and remit the issue to the file of Ld.CIT(A) to decide the same on merits in accordance with law.

7.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 28th October, 2024.

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