SHRI LOKESHWAR CO-OPERATIVE CREDIT SOCIETY NIYAMIT,LOKAPUR vs. INCOME TAX OFFICER, WARD - 1 & TPS, BAGALKOT

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ITA 76/PAN/2023Status: DisposedITAT Panaji21 August 2023AY 2013-14Bench: SHRI PARTHA SARATHI CHAUDHURY (Judicial Member), SHRI G.D. PADMAHSHALI (Accountant Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the NFAC's order and remanded the matter back, directing the NFAC to adjudicate the appeal on merits after granting one final opportunity to the assessee.

What were the facts?

The assessee, a co-operative society, claimed deduction under Section 80P(2)(a)(i) but the AO disallowed interest income under Section 80P(4). The appeal before the NFAC was dismissed due to an 83-day delay.

What were the issues?

Whether the NFAC was justified in dismissing the appeal solely on grounds of limitation without considering the merits, and whether principles of natural justice were violated.

Which sections of the Income-tax Act were involved?

Section 80P(2)(a)(i),Section 80P(4),Section 143(3),Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PANAJI BENCH :: PANAJI

For Appellant: Shri Saidappa Gadadi, CA
For Respondent: Shri N. Shrikanth, DR
Hearing: 14/08/2023Pronounced: 21/08/2023

O R D E R

Per PARTHA SARATHI CHAUDHURY, JM:

1.

The stay application and the appeal preferred by the assessee emanates from the order of National Faceless Appeal Centre [NFAC], Delhi, dated 23.02.2023 for A.Y.2013-14 as per the grounds of appeal on record.

2.

At the time of hearing, ld.AR submits that he wants to withdraw the stay application. Ld.DR has not raised any objection. Therefore, this stay application filed by the assessee is dismissed as withdrawn.

3.

Now we shall adjudicate the appeal filed by the assessee.

SA No. 05/PAN/2023 & Shri Lokeshwar Co-op. Credit Society Niyamit 4. Brief facts of the case are that assessee is a co-operative society, filed its return of income declaring NIL income after claiming deduction u/sec. 80P(2)(a)(i). The Assessing Officer held that assessee cannot claim exemption of interest income u/sec. 80P(4) and disallowing the same, order was passed u/sec. 143(3). Aggrieved by the action of the AO, the assessee filed an application u/sec. 154 which was also rejected. Aggrieved, assessee filed the appeal before the NFAC with a delay of 83 days. The NFAC had dismissed the appeal of the assessee on the ground of limitation i.e. 83 days delay in filing the appeal. Further, aggrieved, the assessee is in appeal before this Tribunal.

5.

The NFAC while adjudicating the appeal has observed that assessee had not been able to prove its reasons for 83 days delay with documentary evidence. It was not just and proper to raise the issue after a gap of more than 83 days and by placing reliance on various judicial precedents, on the ground of limitation, the NFAC dismissed the appeal in limine. The process of judicial adjudication requires Quasi-Judicial authority to adjudicate the case on merits and come out with a speaking order. Moreover, keeping in mind the principles of natural justice and the very fact, the Income Tax Act is welfare legislation; we are of the considered view that one final opportunity should be given to the assessee to represent its case on merits. Therefore, the assessee is directed to present itself through its authorised representative before the NFAC immediately on receipt of SA No. 05/PAN/2023 & Shri Lokeshwar Co-op. Credit Society Niyamit this order along with relevant/necessary documents to present its case on merits before the NFAC and it shall adjudicate the same by passing a speaking order while complying with the principles of natural justice. Issuance of any further notice to assessee is dispensed with. In view of the aforesaid directions, we set aside the order of the NFAC and remand the matter back to its file.

6.

In the result, stay application of the assessee is dismissed as withdrawn and that the appeal stands allowed for statistical purposes.

Order pronounced in open Court on 21st August, 2023.

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