AA531 KESARIMANGALAM PRIMARY AGRL CO-OP CREDIT SOCIETY LIMITED,ERODE V. INCOME TAX OFFICER, WARD 2(5), ERODE

ITA 1872/CHNY/2024

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The case involves the Kesarimangalam Primary Agri Co-op Credit Society Limited, which appealed against the order of the Commissioner of Income Tax (Appeals) concerning the assessment year 2017-18. The society, a registered agricultural co-operative, had filed its return claiming a deduction under section 80P of the Income Tax Act, which was partially allowed by the Assessing Officer. The CIT(A) dismissed the society's appeal due to a significant delay in filing, attributed to the society's engagement with a statutory audit and lack of a qualified accountant. The Tribunal found the delay reasonable, considering the circumstances including the COVID-19 pandemic, and remitted the case back to the CIT(A) for a decision on the merits.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 29965 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 28-10-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 08-07-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.ANITA
• Keywords: Set aside; Reasonable cause; Co-operative Credit Society
• Section: 142(1); 143(2); 250; 80P; 72

Judgement Text

" आयकर अपीलीय अिधकरण,‘ सी’ ᭠यायपीठ,चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI ᮰ी एबी. टी. वक᳹, ᭠याियक सद᭭य एवं ᮰ी एस.आर.रघुनाथा, लेखा सद᭭य के समᭃ BEFORE SHRI ABY T. VARKEY, HON’BLE JUDICIAL MEMBER AND SHRI S. R. RAGHUNATHA, HON’BLE ACCOUNTANT MEMBER आयकरअपीलसं./ITA No.: 1872/Chny/2024 िनधाᭅरणवषᭅ / Assessment Year: 2017-18 AA531 Kesarimangalam Primary Agri Co-op Credit Society Limited, Kuppichipalayam, Kesarimangalam (P.O), Bhavani – 638 311. [PAN: AACAA-6388-G] v. Income Tax Officer, Ward -2(5), Erode. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮकᳱओरसे/Appellant by : None ᮧ᭜यथᱮकᳱओरसे/Respondent by : Ms. R. Anita, Addl. CIT सुनवाई कᳱ तारीख/Date of Hearing : 28.10.2024 घोषणा कᳱ तारीख/Date of Pronouncement : 30.10.2024 आदेश /O R D E R PER S. R. RAGHUNATHA, ACCOUNTANT MEMBER: This appeal filed by the assessee is directed against the order passed by the learned Commissioner of Income Tax (Appeals), Addl/JCIT(A)-10, Mumbai, dated 27.02.2024 and pertains to assessment year 2017-18. 2. At the outset, we find that there is a delay of 72 days in appeal filed by the assessee, for which petition for condonation of delay along with reasons for delay has been filed. After :-2-: ITA. No: 1872/Chny/2024 considering the petition filed by the assessee and also hearing both the parties, we find that there is a reasonable cause for the assessee in not filing appeal on or before the due date prescribed under the law and thus, in the interests of justice, we condone delay in filing of appeal and admit appeal filed by the assessee for adjudication. 3. The brief facts of the case are that, the assessee is a primary agricultural co-operative credit society registered under the Tamilnadu Co-operative Societies Act, 1983. The assessee filed its return of income for the assessment year 2017-18 on 08.03.2018 admitting nil income after claiming deduction u/s. 80P of the Act totaling to Rs.14,05,117/-. Subsequently, the case was selected for limited scrutiny under CASS for large deduction under Chapter VIA and low income in comparison to investments/advances/loans and issued notice u/s. 143(2) on 10.08.2018. A notice u/s. 142(1) of the Act was also issued requesting to furnish the details/documents specified therein. In response to the notice, the assessee submitted profit & loss account, balance sheet, schedules etc. However, not satisfied with the details furnished by the assessee, the Assessing Officer held that deduction u/s. :-3-: ITA. No: 1872/Chny/2024 80P(2)(a) of the Act for the income earned from providing credit facility is not allowed, if the deduction is allowed then the activity of the society falls under any other activity described in 80P(2)(c) of the Act and allowed Rs.50,000/- u/s. 80P(2)(c) of the Act and assessed income at Rs.7,06,759/-. Aggrieved by the order of the Assessing Officer, the assessee preferred an appeal before the ld.CIT(A). 4. Before the ld.CIT(A), the assessee filed an appeal with a delay of 507 days (1223 days including covid period) for which the reason given was the assessee was occupied with statutory audit and does not have qualified accountant to look after the proceedings. Further, the assessee stated that Tamilnadu State Accounting and Taxation Services Co-operative Society was formed to look after the taxation matters of the Co- operative societies and that society identified the pending proceedings of the assessee and immediately filed the appeal. The ld.CIT(A) after considering the submissions made by the assessee held that the there is no sufficient cause u/s. 249(3) of the Act for condoning the delay and dismissed the appeal of the assessee without adjudicating on merits by not condoning :-4-: ITA. No: 1872/Chny/2024 the delay. Aggrieved by the order of the ld.CIT(A), the assessee preferred an appeal before us. 5. None appeared at the time of hearing. Per contra, the ld.DR prayed for dismissing the appeal filed by the assessee. 6. We have heard the ld.DR and perused the materials available on record. We note that the ld.CIT(A) has dismissed the appeal without condoning the delay in filing the appeal by the assessee. We note that though the assessment order has been passed on 06.12.2018 and due to covid-19 pandemic, the assessee could not file the appeal. We take judicial notice of the Hon’ble Supreme Court decision for condoning the delay in filing upto June 2021, and finding that assessee filed the appeal before CIT(A) on 22.05.2023, since the assessee being a primary agricultural credit & co-op society which carries on the business not for profit had to undergo statutory audit as envisaged by the Co-operative Societies Act and therefore, it was prevented from filing the appeal in time, which we find to be reasonable, and hence, in the interest of justice and fair play, we condone the delay in filing the appeal before the Ld.CIT(A) and since the ld.CIT(A) has not decided the grounds :-5-: ITA. No: 1872/Chny/2024 of appeal as per sub-section (6) of section 250 of the Act, we deem it fit to set aside the order of the ld.CIT(A) and remit the matter back to the file of the CIT(A) and direct CIT(A) to decide the grounds of appeal in accordance to law, after providing reasonable opportunity to the assessee. Needless to say, assessee to be diligent and file written submissions and relevant documents if advised so. 7. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the court on 30th October, 2024 at Chennai. Sd/- (एबी टी. वकŎ) (ABY T. VARKEY) Ɋाियकसद˟/Judicial Member Sd/- (एस. आर.रघुनाथा) (S. R. RAGHUNATHA) लेखासद˟/Accountant Member चे᳖ई/Chennai, ᳰदनांक/Dated, the 30th October, 2024 JPV आदेशकीŮितिलिपअŤेिषत/Copy to: 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3.आयकर आयुƅ/CIT – Coimbatore 4. िवभागीय Ůितिनिध/DR 5. गाडŊ फाईल/GF "