Maharshi Karve Stree Shikshan Sansthas Employees Coop Society Ltd. Vs Income Tax Department (ITAT Pune)
The Pune Bench of the Income Tax Appellate Tribunal allowed the assessee’s appeal for statistical purposes by setting aside the order of the Commissioner of Income Tax (Appeals)/NFAC and remanding the matter to the Assessing Officer for fresh adjudication. The Tribunal first condoned the delay in filing the appeal after being satisfied that sufficient cause had been shown. The assessee, a credit co-operative society registered under the Maharashtra Co-operative Societies Act and engaged in providing credit facilities to its members and accepting deposits from them, had filed its return declaring nil income after claiming deduction under Section 80P(2)(a)(i) of the Income-tax Act. The Assessing Officer completed the assessment under Section 143(3), relying on Totgars Cooperative Sale Society Ltd., and disallowed the deduction under Section 80P(2)(a)(i), resulting in an assessed income of ₹43,35,622.
Before the Tribunal, the assessee challenged the appellate order on grounds including violation of principles of natural justice, failure to call for documents, denial of a personal hearing, non-consideration of legal submissions and judicial precedents, incorrect reliance on Totgars Cooperative Sale Society Ltd., and an error in demand calculation. The CIT(A)/NFAC had dismissed the appeal on the ground that the assessee had not furnished documents such as its bye-laws, financial statements and bank accounts, making it impossible to verify eligibility for deduction under Sections 80P(2)(a)(i) and 80P(4).
