CUD DT PUBLIC HEALTH DEPT EMP CO OP SOCIETY BY FC,CUDDALORE V. AO, CUDDALORE

ITA 471/CHNY/2025

AI Insights

The case involves M/s. CUD DT Public Health Dept. Emp. Co-Op Society, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was initially delayed by 260 days due to the society's unawareness of the appellate order and lack of technical familiarity with the e-filing portal. The Tribunal found sufficient reason for the delay and condoned it, proceeding to address the appeal on its merits. The primary issue was the denial of deduction under section 80P of the Income Tax Act, 1961, due to the late filing of the return. The Tribunal decided to restore the case to the AO, pending the decision on the condonation of delay application under section 119(2)(b).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 652692 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SITA KRISHNAMOORTHY
• Assessee Lawyers: G.REDDI PRAKASH
• Keywords: Condonation of delay; Competent authority
• Section: 119(2)(b)

Judgement Text

"आयकर अपीलȣय अͬधकरण, ‘ए’ Ûयायपीठ, चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI Įी जॉज[ जॉज[ क े, उपाÚय¢ एवं Įी एस.आर.रघुनाथा, लेखा सदèय क े सम¢ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENTAND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.:471/CHNY/2025 िनधाᭅरण वषᭅ/Assessment Year:2019-20 M/s. CUD DT Public Health Dept. Emp. Co-Op Society by FC, No.4, Appavu Street, Pudupallayam, Cuddalore H.O., Cuddalore – 607 001. PAN: AACAC 9724A Vs. The Income Tax Officer, Ward 2, Cuddalore. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri G. Reddi Prakash, CA ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Ms. Sita Krishnamoorthy, JCIT सुनवाई कᳱ तारीख/Date of Hearing : 12.06.2025 घोषणा कᳱ तारीख/Date of Pronouncement : 16.06.2025 आदेश /O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal at the instance of the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 20.03.2024, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2019-20. - 2 - ITA No.471/CHNY/2025 2. There is a delay of 260 days in filing the appeal. The Secretary of the assessee’s society has filed affidavit for condonation of delay stating therein the reasons for belated filing of this appeal. The reasons stated in the affidavit for belated filing reads as follows:- 3. The delay in filing the appeal occurred due to the following genuine and bona fide reasons:  The appellant society was not aware of the disposal of the faceless appellate proceedings and did not receive the physical copy of the order passed by the CIT(A).  The order was not accessed or downloaded from the e-filing portal due to lack of technical familiarity.  The matter came to light only when the undersigned, during a visit to the Chartered Accountant's office for filing the return of income for the subsequent assessment year, discussed the past proceedings, upon which the order was retrieved and advised for appeal.  Immediately upon knowledge of the appellate order, the appellant society acted promptly and filed the appeal before the Hon'ble Tribunal without any further delay. 4. I state and submit that the delay was not intentional or deliberate but was caused due to lack of awareness and technical knowledge about the faceless appellate mechanism. The appellant has a strong case on merits and prays that it may be given an opportunity to present its case before this Hon’ble Tribunal. 5. It is therefore respectfully prayed that the Hon'ble Tribunal may be pleased to condone the delay of 260 days in filing the appeal and admit the same for hearing and disposal on merits, in the interest of substantial justice. 3. On perusal of the same, we find there is sufficient reason for delay in filing this appeal before the Tribunal. Hence, we condone - 3 - ITA No.471/CHNY/2025 the delay in filing the appeal and proceed to dispose off the appeal on merits. 4. Brief facts of the case are as follows: The assessee is an Employees Co-op Thrift and Credit Society extending credit to its members. It has filed its return of income for assessment year 2019-20 on 28.11.2020 admitting ‘Nil’ income after claiming deduction u/s.80P of the Act. Since the return was filed beyond the period prescribed u/s.139(1) of the Act, the CPC issued an intimation u/s.143(1) of the Act on 03.02.2021 denying the claim of deduction u/s.80P of the Act. 5. Aggrieved by the intimation issued u/s.143(1) of the Act, the assessee filed appeal before the First Appellate Authority (‘FAA’). After considering the submissions of the assessee, the FAA confirmed the order of the AO. 6. Aggrieved by the order of the FAA, the assessee has filed the present appeal before the Tribunal. The Ld.AR submitted that since the co-operative audit was not completed till the due date for filing the return of income, the assessee filed the return belatedly on 28.11.2020. The Ld.AR further submitted that the assessee’s - 4 - ITA No.471/CHNY/2025 representation to CCIT praying for condonation of delay in filing return of income u/s.139(1) of the Act is pending u/s.119(2)(b) of the Act. It was submitted that since the condonation petition u/s. 119(2)(b) of the Act before the competent authority has direct bearing, the matter may be restored to the files of the AO to await the decision of the Competent Authority on the condonation application filed in terms of section 119(2)(b) of the Act. 7. The Ld.DR supported the order of the FAA. 8. We have heard rival submissions and perused the material on record. The assessee had approached the Competent Authority u/s.119(2)(b) of the Act for condonation of delay in filing return of income u/s.139(1) of the Act. The assessee’s application for condonation of delay u/s.119(2)(b) of the Act has a direct bearing as regards the claim of deduction u/s.80P of the Act. In event the competent authority condones the delay in filing the return of income filed by the assessee necessarily the claim of deduction u/s.80P of the Act has to be considered on merits by the concerned AO. Since the assessee’s application of condonation of delay in filing the return of income is pending consideration before the Competent Authority, we deem it appropriate to restore the case to the files of the AO. The - 5 - ITA No.471/CHNY/2025 AO is directed to pass afresh order after the Competent Authority has passed the order regarding the assessee’s petition for condonation of delay in filing the return of income. It is ordered accordingly. 9. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 16th June, 2025 at Chennai. Sd/- Sd/- (एस.आर. रघुनाथा) (S.R. RAGHUNATHA) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चेÛनई/Chennai, Ǒदनांक/Dated, the 16th June, 2025 RSR आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Chennai 4. ͪवभागीय ĤǓतǓनͬध/DR 5. गाड[ फाईल/GF. "