C-2608 NAS PACCS,TIRUPATTUR V. ITO, WARD-3, VELLORE

ITA 2785/CHNY/2025

AI Insights

The case involves the NAS Primary Agricultural Cooperative Credit Society, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for the assessment year 2018-19. The primary contention was the dismissal of their appeal in limine due to a significant delay in filing. The Assessing Officer had previously treated substantial cash deposits as unexplained money under section 69A of the Income Tax Act, 1961, leading to an addition to the total income of the assessee. The Tribunal considered the reasons for the delay in filing the appeal and the circumstances that led to the non-submission of necessary documents and explanations at the earlier stages.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 824483 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Appeal Filed On: 09-10-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LATCHANA
• Assessee Lawyers: G. GOUDHAMAN
• Keywords: Reasonable cause
• Section: 147; 148; 133(6)

Judgement Text

"आयकर अपीलीय अिधकरण, ’ए’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं सुŵी एस.पȧावती,, लेखा सद˟ क े समƗ Before Shri S.S. Viswanethra Ravi, Judicial Member & Ms. S. Padmavathy, Accountant Member आयकर अपील सं./I.T.A. No.2785/Chny/2025 िनधाŊरण वषŊ/Assessment Year: 2018-19 C-2608, NAS Primary Agricultural Cooperative Credit Society, Nariyambattu, Tirupattur 635 819. [PAN: AABAC2146D] Vs. The Income Tax Officer, Ward 3, Vellore. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri G. Goudhaman, CA ŮȑथŎ की ओर से/Respondent by : Ms. Latchana, JCIT सुनवाई की तारीख/ Date of hearing : 17.12.2025 घोषणा की तारीख /Date of Pronouncement : 31.12.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 12.08.2025 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2018-19. 2. The assessee raised 9 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is justified in dismissing the appeal in limine. Printed from counselvise.com I.T.A. No.2785/Chny/25 2 3. The Assessing Officer noted that the assessee made cash deposits of ₹.59,39,125/-. After following due procedure, the Assessing Officer issued notice under section 148 of the Income Tax Act, 1961 [“Act” in short] on 26.03.2024. In response to the said notice, the assessee filed return of income admitting income at ₹.9,17,604/-. Thereafter, notices under sections 143(2)/142(1) of the Act/show- cause notice were issued to the assessee to submit the details, but, however, there was no response from the assessee. After obtaining details from the Vellore district Central Co-operative Bank ltd. under section 133(6) of the Act, the Assessing Officer proposed variation of ₹.2,80,85,518/- as unexplained money under section 69A of the Act. The contents in the reply filed by the assessee on 28.02.2023 are reproduced at para 4 of the assessment order. Since the assessee has not submitted any evidence/supporting documents, the Assessing Officer completed the assessment under section 147 r.w.s. 144B of the Act dated 20.03.2023 by treating the actual cash deposits of ₹.95,15,058/-, as tabulated at page 7 & 8 of the assessment order, as unexplained money under section 69A of the Act and added to the total income of the assessee. The ld. CIT(A) dismissed the appeal since the Printed from counselvise.com I.T.A. No.2785/Chny/25 3 assessee failed to furnish reasonable cause for the delay of 269 days in filing the appeal. 4. The ld. AR Shri G. Goudhaman, CA submits that the assessee preferred an appeal before the ld. CIT(A) against assessment order. The assessee has acknowledged the delay in filing the appeal in Form 35 and explained the reasons, but, however, the ld. CIT(A) rejected explanation of the assessee and dismissed the appeal. He submits that the delay in filing the appeal is neither wilful nor wanton, but, beyond the control of the assessee. The ld. AR prayed that the delay in filing the appeal before the ld. CIT(A) may be condoned. By filing an Undertaking of the assessee society that the assessee shall provide all necessary documentary evidences and explanations to substantiate its case before the ld. CIT(A) and prayed to remand the matter to the file of the ld. CIT(A). The ld. DR Ms. Latchana, JCIT relied on the order of the ld. CIT(A). 5. Considering the submissions of the ld. AR and the ld. DR as well as undertaking filed by the assessee, we direct the ld. CIT(A) to condone the delay in filing the appeal as well as adjudicate the issue on merits after considering the documentary evidences/explanations as Printed from counselvise.com I.T.A. No.2785/Chny/25 4 may be furnished by the assessee to substantiate its claim. The assessee is also directed to furnish complete details before the ld. CIT(A) without fail. Thus, the grounds raised by the assessee are allowed for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 31st December, 2025 at Chennai. Sd/- Sd/- (S. PADMAVATHY) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 31.12.2025 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. Printed from counselvise.com "