Payakaraopeta Women’s Mutually Aided Coop Thrift & Credit Society Limited Vs ACIT (ITAT Visakhapatnam)
Repeated Defaults But One Last Chance – ITAT Grants Final Opportunity in 80P Dispute
Assessee, a society registered under the Andhra Pradesh Mutually Aided Cooperative Societies Act, had filed its return declaring NIL income after claiming deduction of Rs. 47.94 lakh u/s 80P. AO disallowed deduction in respect of interest on FDs, bank balances & staff loans amounting to about Rs. 33.71 lakh & completed assessment u/s 143(3).
Assessee’s first appeal before CIT(A) was dismissed ex parte due to non-appearance. On further appeal, the Tribunal had earlier remitted the matter to CIT(A) for fresh adjudication. However, even in the second round of proceedings, Assessee failed to comply with notices, leading once again to dismissal of appeal ex parte by CIT(A). When the matter came back before the Tribunal, Assessee pleaded for one more opportunity to present its case. Department opposed the plea, highlighting repeated non-compliance.
Tribunal observed that though multiple opportunities had been given, Assessee had not availed them. However, considering principles of natural justice, Tribunal granted one final opportunity & remitted the matter back to CIT(A) with a direction to decide on merits within 90 days. At the same time, the Tribunal cautioned the Assessee to fully co-operate, failing which CIT(A) would be at liberty to pass order on merits. Thus, the appeal was allowed for statistical purposes.
