AA547 KALICHETTIPALAYAM PACCS,KALICHETTIPALAYAM V. DEPUTY DIRECTOR OF INCOME TAX, BENGALURU

ITA 2543/CHNY/2024

AI Insights

The case involves M/s. AA547 Kalichettipalayam PACCS, a Primary Agricultural Co-operative Credit Society, which appealed against the order of the Commissioner of Income Tax (Appeals) for not condoning a 54-day delay in filing an appeal concerning the disallowance of deductions claimed under section 80P(2)(a)(i) and 80P(2)(d) of the Income Tax Act, 1961. The Society had filed its return for the assessment year 2022-23, claiming deductions and a refund, which were initially processed but later disallowed, leading to an addition of income. The Tribunal considered the Society's explanation for the delay, citing the hospitalization of the official handling tax matters, and the fact that the Society was not run by computer-savvy individuals, which contributed to the delay in e-verifying the return and filing the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107153 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KEERTHI NARAYANAN
• Assessee Lawyers: R.RESHMA
• Keywords: Competent authority; Co-operative Credit Society

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u000eा यपीठ, चे\u0013ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0016ी एबी टी. वक\u001a, \u000eा ियक सद\u001d एवं \u0016ी अिमता भ शु$ा , लेखा सद\u001d क े सम& BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2543/Chny/2024 िनधा (रण वष(/Assessment Year: 2022-23 M/s. AA547 Kalichettipalayam PACCS, Kalichettipalayam, K Mettupalayam Post, Gobichettipalayam Taluk, Erode District - 638 455. [PAN: AACAA 0938N] Vs. The Income Tax Officer, Ward 2(1), Erode (अपीला थ\u001a/Appellant) (+,थ\u001a/Respondent) अपीला थ\u001a की ओर से/ Appellant by : Ms. R. Reshma, Advocate +,थ\u001a की ओर से /Respondent by : Shri Keerthi Narayanan, JCIT सुनवा ईकीता रीख/Date of Hearing : 23.12.2024 घोषणा कीता रीख /Date of Pronouncement : 05.02.2025 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee, Primary Agricultural Co- operative Credit Society Limited against the order of the Ld. Commissioner of Income Tax (Appeals) / Addl./JCIT(A)-2, Chandigarh (hereinafter in short “CIT(A)\") dated 01.08.2024 for assessment year 2022-23 (hereinafter in short “AY\"). ITA No.2543/Chny/2024 (AY 2022-23) AA547 Kalichettipalayam PACCS :: 2 :: 2. The main grievance of the assessee is against the action of the Ld.CIT(A) in not condoning the delay of 54 days in filing the appeal before him. 3. Brief facts are that the assessee is a Primary Agricultural Co- operative Credit Society Limited, [which is registered under the Tamil Nadu Cooperative Societies Act, 1983] has filed its return of income for AY 2022- 23 on 30.10.2022 which was e-verified on 22.12.2022 admitting ‘nil’ income after claiming deduction u/s.80P(2)(a)(i) of the Income Tax Act, 1961 [herein after “Act”] of Rs.7,37,297/- and u/s.80P(2)(d) of the Act of Rs.1,50,638/- and claiming refund of Rs.15,067/-. The return was processed by the CPC u/s.143(1A) and intimation was issued dated 24.05.2023 disallowing the claim of deduction u/s.80P(2) of the Act which resulted in addition of Rs.8,87,940/-. 4. Aggrieved by the intimation order passed by the CPC, the assessee preferred an appeal before the CIT(A), who noted that the assessee has preferred to file the appeal before him only on 16.08.2023 with a delay of 54 days. In this regard, the assessee explained that delay occurred due to hospitalization of the official handling the tax matters of the assessee. However, the Ld.CIT(A) was not convinced with the aforesaid reason for ITA No.2543/Chny/2024 (AY 2022-23) AA547 Kalichettipalayam PACCS :: 3 :: cause of delay and was of the view that assessee failed to demonstrate that there was sufficient cause for not filing the appeal within the timeline prescribed by the Act; and therefore, he did not condone the delay of 54 days in filing the appeal before him. Aggrieved, the assessee is before us against the impugned action of AO. 5. Having heard both parties, we note that the assessee is a Primary Agricultural Co-operative Credit Society and is situated at Erode. The Ld.AR brought to our notice that the assessee being a Primary Agricultural Co-operative Credit Society, which is run by persons who are not computer savvy, belatedly e-verified the return of income on 22.12.2022, though filed the same within time on 30.10.2022. According to the Ld.AR, having filed the return of income on time, the assessee does not get any benefit by delaying the e-verification of the same return of income which led to the CPC denying the deduction claimed u/s.80P of the Act. Similarly, the assessee by delaying filing of appeal before the First Appellate Authority doesn’t reap any benefit. In the aforesaid circumstances, the Ld.AR pleaded that the delay may be condoned considering the assessee being a Primary Agricultural Co-operative Credit Society which is providing credit facility to poor farmers, may be viewed leniently and sympathetically. And the Ld.AR also brought to our notice that assessee has taken steps and ITA No.2543/Chny/2024 (AY 2022-23) AA547 Kalichettipalayam PACCS :: 4 :: filing an application before the competent authority for condoning the delay in e-verifying the return of income. Considering the aforesaid submissions and taking note of the fact that assessee is a Primary Agricultural Co- operative Credit Society, which is engaged in providing credit facilities to the farmers, we are taking a lenient view since the assessee was run by persons who were not computer savvy, which caused the delay in e- verifying the return as well as the delay caused in filing appeal before the Ld.CIT(A); and moreover, the assessee’s claim made u/s.80P(2) of the Act should not be denied merely on technical ground. Therefore, we condone the 54 days delay in filing of appeal before the Ld. CIT(A) and restore the appeal back to his file. 6. Having said so, as noted supra that the assessee is filing application before the Ld.CCIT for condoning the delay in filing of return of income / e-verifying the return of income. Therefore, for the ends of justice and fair play, we direct the Ld.First Appellate Authority to await the decision of the Ld.CCIT in respect of application filed for condoning the delay in filing of return of income /e-verify the return of income; and thereafter pass order on merit on the claim made by the assessee u/s.80P(2) of the Act. The Ld.AR is directed to inform the First Appellate Authority regarding the outcome of the decision of the Ld.CCIT in condoning the delay in filing of return of ITA No.2543/Chny/2024 (AY 2022-23) AA547 Kalichettipalayam PACCS :: 5 :: income / e-verify the return of income and also direct the assessee to file evidences regarding the claim made u/s.80P(2) of the Act and thereafter, the Ld.CIT(A) to decide the claim in accordance to law after hearing the assessee. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 05th February, 2025 at Chennai. Sd/- (अिमताभ शु ा) (AMITABH SHUKLA) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (एबी टी. वक\u0012) (ABY T. VARKEY) \u0005याियक सद\u0003य/JUDICIAL MEMBER चे\u0003ई/Chennai, \u0005दनांक/Dated: 05th February, 2025. RSR आदेश की +ितिलिप अ0ेिषत/Copy to: 1. अपीला थ\u001a/Appellant, 2.+,थ\u001a/ Respondent, 3. आयकर आयु1/CIT, Coimbatore 4. िवभा गीय +ितिनिध/DR & 5. गा ड( फा ईल/GF. "