AA 291 THALAVADY PRIMARY AGRICULTURAL COOP CREDIT SOCIETY LIMITED,ERODE V. THE INCOME TAX OFFICER, WARD 2(1), ERODE, ERODE

ITA 2731/CHNY/2025

AI Insights

The case involves the Thalavady Primary Agricultural Co-op. Credit Society Ltd., which appealed against the orders of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi. The appeals were initially dismissed by the CIT(A) due to delays in filing. The Tribunal found sufficient cause for the delay in filing the appeal before it and admitted the appeal for adjudication. The main issues pertained to the unexplained increase in unsecured loans and the disallowance of deduction under section 80P of the Income Tax Act, 1961. The Tribunal directed the CIT(A) to reconsider the case on merits after condoning the delay.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 827483 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2026
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2020-2021
• Appeal Filed On: 05-10-2025
• Other Referred Cases: Collector, Land Acquisition Vs. MST.Katiji & Ors.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: LATCHANA
• Assessee Lawyers: A. VIJAYALAKSHMI; C.A VIRTUAL
• Keywords: Set aside; Business income
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ ा यपीठ, चे\u0012ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0015ी यस यस िव\u0018ने\u001a रिव, ा ियक सद एवं सु\u0015ी प ा वित यस, लेखा सद क े सम$ BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND MS. PADMAVATHY.S, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.2729, 2731 & 2732/Chny/2025 िनधा %रण वष% /Assessment Years: 2020-21 AA 291 Thalavady Primary Agricultural Co-op. Credit Society Ltd., 115/75, Sathy Road Thalavady, Sathyamangalam Taluk, Erode – 638 461. PAN: AACAA 1571B Vs. The Income Tax Officer, Ward-2(1), Erode. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थ( की ओर से/ Assessee by : Ms. A.Vijayalakshmi, C.A (virtual) *+थ( की ओर से /Respondent by : Ms. Latchana, JCIT सुनवा ई की ता रीख/Date of Hearing : 16.12.2025 घोषणा की ता रीख /Date of Pronouncement : 07.01.2026 आदेश / O R D E R PER PADMAVATHY.S, A.M: These appeals by the assessee are against the separate orders of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAXC), Delhi (in short \"CIT(A)\") passed u/s. 250 of the Income Tax Act, 1961 ( in short \"the Act\") all dated 25.07.2025 for Assessment Years (AYs) 2020-21. The order of CIT(A) is emanating from the order of the A.O passed u/s. 143(3) of the Act and penalty orders u/s. 270A & 271AAC(1) of the Act. Printed from counselvise.com ITA Nos.2729, 2731 & 2732/Chny/2025 AA 291 Thalavady Primary Agricultural Co.op Credit Society Ltd. :- 2 -: 2. The assessee is a cooperative credit society and filed the return of income for A.Y 2020-21 on 29.12.2020 declaring total income at Nil. The case was selected for scrutiny and statutory notices were duly served on the assessee. The A.O noticed that the unsecured loans have increased by an amount of Rs. 3,38,63,002/- as compared to A.Y 2019-20. The A.O held that considering the low income of the assessee the substantial increase in unsecured loan is not properly supported. The A.O accordingly added the said amount as business income of the assessee on the ground that the loans have remained unexplained by the assessee. The A.O also disallowed the deduction claimed by the assessee u/s. 80P of the Act stating that the assessee neither offered any explanation nor has filed any details with regard to the said claim. The A.O also initiated penalty proceedings u/s. 270A and 271AAC(1) of the Act. Aggrieved by the orders of the A.O, the assessee preferred further appeal before the CIT(A). 3. There was a delay of 2 years and 4 months in the filing the appeal before the CIT(A) against the order of the A.O u/s. 143(3) of the Act and there was a delay of 2 years and 1 month in filing the appeal before the CIT(A) against the orders of the A.O passed u/s. 270A & 271AAC(1) of the Act. The CIT(A) did not condone the delay and dismissed all the appeals in limine. The assessee is in appeal before the Tribunal against the order of the CIT(A). 4. There is a delay of 5 days in filing the appeal before the Tribunal and the assessee filed a petition for condonation. It is stated in the affidavit that the delay is due to the pre-occupation of tax consultant and that delay is unintentional. Printed from counselvise.com ITA Nos.2729, 2731 & 2732/Chny/2025 AA 291 Thalavady Primary Agricultural Co.op Credit Society Ltd. :- 3 -: 5. Having heard both the parties and perused the material on record, we are of the view that there is a reasonable and sufficient cause for the delay in filing the appeal before the Tribunal. Therefore following the Hon’ble Supreme Court decision in the case of Collector, Land Acquisition Vs. MST.Katiji & Ors., (167 ITR 471) (SC), we condone the delay of 5 days in filing the appeal and admit the appeal for adjudication. 6. We have heard the both the parities, perused the material available on record. The Ld. AR submitted that the delay in filing the appeal before the CIT(A) was due to the fact that the assessee was not having proper professional support who can guide the tax matters. The Ld. AR further submitted that the assessee subsequently appointed a tax consultant and once the tax consultant was on board, the assessee was correctly advised to file the appeal before the CIT(A) against the order of the A.O. The Ld. AR also submitted that the officers in charge are not well versed with tax related matters and prayed that the delay in fling the appeal before the CIT(A) be condoned. We notice from the records that the reason for making the additions is that the details have not been submitted by the assessee. The ld AR submitted before us that the assessee has a genuine case on merits and accordingly prayed for one final opportunity. Considering the facts and circumstances of the case, we are inclined to give one more opportunity to the assessee to represent the case properly before the CIT(A). Accordingly, we remit the appeals back to the CIT(A) with a direction to condone the delay and to consider the additions/disallowances made by the A.O on merits by calling for relevant details in order to decide the case in accordance with law. The assessee is directed to submit the relevant details and cooperate with the appellate proceedings. It is ordered accordingly. Printed from counselvise.com ITA Nos.2729, 2731 & 2732/Chny/2025 AA 291 Thalavady Primary Agricultural Co.op Credit Society Ltd. :- 4 -: 7. Since, we are set aside the impugned issue arising from the quantum appeal back to the CIT(A), the penalty u/s. 270A and 271AAC(1) of the Act which are consequential have become infructuous and dismissed accordingly. 8. In the result, the appeal in ITA No.2729/Chny/2025 is allowed for statistical purposes and the appeal in ITA Nos.2731 & 2732/Chny/2025 are dismissed as infructuous. Order pronounced on 07th day of January, 2026 at Chennai. Sd/- Sd/- (यस यस िव\u0018ने\u001a रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (प ा वित यस) (Padmavathy.S) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 07th January, 2026. EDN, Sr. P.S आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com "