THE MARADY SERVICE CO-OP BANK LIMITED ,KOCHI vs. ITO WARD 1, THODUPUZHA
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Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN
Before: SHRI SANJAY ARORA, AM & MS. KAVITHA RAJAGOPAL, JM
IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN
BEFORE SHRI SANJAY ARORA, AM AND MS. KAVITHA RAJAGOPAL, JM ITA No.931/Coch/2022 (Assessment Year: 2011-12) And Stay Application No. 68/Coch/2022 (Arising out of ITA No.931/Coch/2022) (Assessment Year: 2011-12) The Marady Service Co-op. Bank ITO Ward 1, Limited Temple Bypass Road, Thodupuzha, No. E-57, South Marady PO, Kerala-676 10 Vs. Muattupuzha, Ernakulam, Kerala-686 673 PAN/GIR No. AACAT 5248 C (Assessee) (Respondent) : Assessee by : None Respondent by : Smt. J M. Jamuna Devi Date of Hearing : 14.03.2024 Date of Pronouncement : 30.04.2024 O R D E R Per Kavitha Rajagopal, J M:
This appeal has been filed by the assessee, challenging the order of the learned
Commissioner of Income Tax (Appeals) (‘ld.CIT(A) for short) passed u/s.250 of the
Income Tax Act, 1961 (‘the Act'), relevant to the Assessment Year (‘A.Y.’ for short)
2011-12.
The assessee has also filed the Stay Application in this matter seeking for stay of
recovery of demand raised by the Revenue.
The assessee has challenged this appeal on the ground of violation of principles of
natural justice and on the disallowances of deduction u/s. 80P of the Act. The assessee
has also challenged the reopening of the assessment notice u/s. 148 of the Act.
2 ITA No. 931/Coch/2022 & SA No. 68/Coch/2022 The Marady Service Co-op. Bank Limited 4. The brief facts are that the assessee is a Co-operative Bank registered under the
Kerala Co-operative Societies Act, 1969. The assessee had not filed its return of income
for the year under consideration and the assessee’s case was reopened by the ld.
Assessing Officer ('A.O.' for short) on the reason to believe that the income chargeable to
tax has escaped assessment. The ld. A.O. issued notice u/s. 148 of the Act which was
duly served upon the assessee. The assessee filed its return of income in response to the
said notice, declaring total income at Rs.Nil after claiming deduction u/s. 80P of the Act
amounting to Rs.40,77,175/-. The ld. AO issued notice u/s. 142(1) and 143(2) of the Act
which were duly served upon the assessee. The ld. A.O. then passed the assessment
order, determining total income at Rs.40,77,175/- by making addition/disallowance u/s.
80P of the Act. The ld. A.O. made the impugned addition on the ground that the assessee
is a cooperative bank and not a primary agricultural credit cooperative society.
Aggrieved the assessee was in appeal before the first appellate authority who vide
order dated 14.09.2022 dismissed the appeal filed by the assessee on the ground that the
assessee has not been compliant before the ld. CIT(A), inspite of several opportunities
granted.
The assessee is an appeal before us, challenging the impugned order of the ld.
CIT(A).
We have heard the learned Departmental Representative ('ld.DR' for short) and
perused the materials available on record. It is observed that the assessee has not been
compliant before the first appellate authority on several occasions where the ld. CIT(A)
has also granted a final opportunity of hearing for the purpose of furnishing the
3 ITA No. 931/Coch/2022 & SA No. 68/Coch/2022 The Marady Service Co-op. Bank Limited submission on or before 25.08.2022. In spite of this, the assessee has failed to respond to
the final show cause notice, wherein the ld. CIT(A) proceeded to dismiss the appeal filed
by the assessee. The assessee prayed that it may be given one more opportunity to present
its case before the ld. CIT(A). The ld. DR, on the other hand, vehemently opposed to
remanding this issue back to the file of the ld. CIT(A).
In the above factual matrix, we are of the considered opinion that owing to the
principles of natural justice as well as the fact that the first appellate authority has not
decided the issue on the merits of the case, the assessee may be given one more
opportunity to present its case before the first appellate authority with the direction to co-
operate without any undue delay. The ld. CIT(A) is directed to decide this issue on the
merits of the case upon consideration of the submission of both sides. We, therefore,
remand all these issues back to the file of the ld. CIT(A).
The assessee has also filed a Stay Application in this matter which stands
dismissed as infructuous.
In the result, the appeal file by the assessee is allowed for statistical purpose and
the stay application is dismissed as infructuous.
Order pronounced on 30.04.2024 under rule 24 of the Income Tax (Appellate Tribunal) Rules, 1963.
Sd/- Sd/-
(Sanjay Arora) (Kavitha Rajagopal) Accountant Member Judicial Member Mumbai; Dated : 30.04.2024 Roshani, Sr. PS
4 ITA No. 931/Coch/2022 & SA No. 68/Coch/2022 The Marady Service Co-op. Bank Limited Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT - concerned 4. DR, ITAT, Cochin 5. Guard File BY ORDER,
(Dy./Asstt. Registrar) ITAT, Cochin
