Appeal details
Counselvise Citation
[2024] 138 COUNSELVISE.COM (IT) 8354 (ITAT-CHENNAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 month(s) 20 day(s)
Appellant
Respondent
Appeal Type
Others
Pronouncement Date
13-12-2024
Appeal Filed By
Assessee
Order Result
Dismissed
Bench Allotted
C
Assessment Year
2018-2019
Appeal Filed On
23-10-2024
Judgement Text
"आयकर अपीलीय अिधकरण, ’सी’ \u0001यायपीठ, चे\tई। \nIN THE INCOME TAX APPELLATE TRIBUNAL \n‘C’ BENCH: CHENNAI \n \n\u0001ी एबी टी. वक\n, \u000bाियक सद\u0011 \n \n \n एवं\nएवं\nएवं\nएवं \n\u0001ी एस. आर. रघुनाथा, लेखा सद\t क\nे सम\u001b \n \nBEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND \nSHRI S.R.RAGHUNATHA, ACCOUNTANT MEMBER \n \n \nआयकर अपील सं./ITA No.2575/Chny/2024 \n& \nStay Application No.62/chny/2024 \nिनधा\rरण वष\r/Assessment Year: 2018-19 \n \nM/s. C-2504 Nattarampalli- \n Primary Agricultural Co-op. \n Credit Society Ltd., \nNehru Street, Natrampalli, \nTirupattur-635 852. \nv. \nThe ITO, \nCHE-W-(146)(2), \nWard-2, \nVellore. \n[PAN: AAHFC 5944 N] \n \n \n(अपीलाथ\u000e/Appellant) \n \n (\u000f\u0010यथ\u000e/Respondent) \n \nअपीलाथ\u000e क\u0012 ओर से/ Appellant by \n: \nMr. P. Jainendar, CA \n\u000f\u0010यथ\u000e क\u0012 ओर से /Respondent by \n: \nMs. R. Anita, Addl.CIT \nसुनवाईक\u0012तारीख/Date of Hearing \n: \n05.11.2024 \nघोषणाक\u0012तारीख /Date of Pronouncement \n: \n13.12.2024 \n \nआदेश / O R D E R \nPER ABY T. VARKEY, JM: \n \nThis is an appeal preferred by the assessee Primary Agricultural Co-\noperative Credit Society Ltd., against the order of the Learned \nCommissioner of Income Tax (Appeals)/NFAC, (hereinafter in short \"the \nLd.CIT(A)”), \nDelhi, \ndated \n09.08.2024 \nfor \nthe \nAssessment \nYear \n(hereinafter in short \"AY”) 2018-19. \n\n \nITA No.2575/Chny/2024 (AY 2018-19) \n& \nSP No.62/Chny/2024 (AY 2018-19) \nM/s. C-2504 Nattarampalli Primary – \nAgricultural Co-op. Credit Society Ltd. \n:: 2 :: \n \n2. \nThe main grievance of the assessee is against the action of the \nLd.CIT(A) passing ex parte order as well as the AO passing the ex parte \norder and assessing the income of the assessee at R.1,08,53,488/- \nu/s.69A of the Income Tax Act, 1961 (hereinafter in short \"the Act”) \nwhich has been confirmed by the Ld.CIT(A). According to the Ld.AR, the \nassessee was under the bona fide belief that being a Co-operative \nSociety, it was eligible for exemption u/s.80P(2)(a)(i) of the Act and it \nwas not mandatory to file return of income (RoI). According to the \nassessee, its income was derived from its primary activity of providing \ncredit facilities to its members and its entire income would qualify for \nexemption, and no tax liability would arise. However, the AO re-opened \nthe assessment by issuing notice u/s.148 of the Act. Pursuant to which, \nthe assessee handed over its relevant papers to the Tax Consultant who \nwas not techno-savvy, because of which, the assessee or the Tax \nConsultant was unaware of the notices issued by the AO/Ld.CIT(A) and \nwhich led to the ex parte orders being passed by the AO as well as the \nLd.CIT(A). Therefore, he prays one more opportunity be granted to the \nassessee before the AO and cited decision of the Hon’ble Supreme Court \nin the case of TIN Box Co. v. CIT reported in [2001] 249 ITR 216 (SC). \n3. \nPer contra, the Ld.DR doesn’t want us to give one more innings to \nthe assessee and pointed out from AY 2018-19 that [i.e. relevant \n\n \nITA No.2575/Chny/2024 (AY 2018-19) \n& \nSP No.62/Chny/2024 (AY 2018-19) \nM/s. C-2504 Nattarampalli Primary – \nAgricultural Co-op. Credit Society Ltd. \n:: 3 :: \n \nassessment year] as per sec.80AC of the Act, assessee was mandatorily \nrequired to file the RoI and omission to do so, resuled in the disallowance; \nand also pointed out that the assessee didn’t file any condonation \napplication for belated filing of RoI and therefore, even if the assessment \nis restored back to the file of the AO, it would be a futile exercise. \n4. \nWe have heard both the parties and perused the material available \non record. It is noted that impugned order as well as the assessment \norder has been passed ex parte qua assessee without hearing the \nassessee. The assessee is a Primary Agricultural Co-op. Credit Society \nand was under the bona fide belief that its income was exempt from tax \nu/s.80P(2)(a)(i) of the Act and therefore, didn’t file the RoI. It is noted \nthat amendment was brought in section 80AC for the first time mandating \nfiling of RoI from the relevant year under consideration. Be that as it \nmay, since it has been brought to our notice that due to fault of Tax \nConsultant, AO as well as the Ld CIT(A) has passed the exparte orders \nqua assessee, for which omission the assessee can’t be blamed; and \nconsidering that assessee is a Primary Agricultural Co-op. Credit Society \nand the assessment was framed without hearing the assessee, the \nimpugned action needs to be interdicted. Therefore, relying on the \ndecision of the Hon’ble Supreme Court in the case of TIN Box Co. v. CIT \n(supra), we set aside the impugned order of the Ld.CIT(A) and restore \n\n \nITA No.2575/Chny/2024 (AY 2018-19) \n& \nSP No.62/Chny/2024 (AY 2018-19) \nM/s. C-2504 Nattarampalli Primary – \nAgricultural Co-op. Credit Society Ltd. \n:: 4 :: \n \nthe assessment back to the file of the AO with a direction to frame de \nnovo assessment after hearing the assessee. The assessee is directed to \nfile written submissions/relevant documents before the AO as well as file \ncondonation application before competent authority if advised to do so. \nThe AO is at liberty to take notice of the objection raised by the Revenue \nregarding non-filing of RoI/condonation to be obtained from the \ncompetent authority for belated filing of RoI etc. and the AO to pass fresh \nassessment orders after hearing assessee in accordance to law. \n5. \nIn the result, appeal filed by the assessee is allowed for statistical \npurposes and the Stay Petition No.62/chny/2024 being infructuous is \ndismissed. \n \nOrder pronounced on the 13th day of December, 2024, in Chennai. \n \nSd/- \n(एस. आर. रघुनाथा) \n (S.R.RAGHUNATHA) \nलेखा सद\u0003य/ACCOUNTANT MEMBER \n \n \nSd/- \n(एबी टी. वक\n) \n(ABY T. VARKEY) \n\u0005याियक सद\u0003य/JUDICIAL MEMBER \n \nचे\tई/Chennai, \n\u001eदनांक/Dated: 13th December, 2024. \nTLN, Sr.PS \n \nआदेश क\u0012 \u000fितिलिप अ\"ेिषत/Copy to: \n1. अपीलाथ\u0015/Appellant \n2. \u0016\u0017थ\u0015/Respondent \n3. आयकरआयु\u001c/CIT, Chennai / Madurai / Salem / Coimbatore. \n \n4. िवभागीय\u0016ितिनिध/DR \n5. गाड\rफाईल/GF \n \n"
Mehul