EG544K RAMANATHAPURAM PACCS LTD.,ERODE V. ITO, WARD-2(1), ERODE

ITA 3035/CHNY/2024

AI Insights

The case involves the Ramanathapuram Primary Agricultural Co-Operative Credit Society Ltd., which appealed against the order of the Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A)-1, Surat, concerning the assessment year 2017-18. The primary issue was the denial of deduction under section 80P(2)(a) of the Income-tax Act, 1961, by the Assessing Officer, which was upheld by the Addl. CIT(A) despite the assessee's appeal being dismissed due to a significant delay attributed partly to the Covid-19 pandemic. The Tribunal found that the Addl. CIT(A) was not justified in dismissing the appeal solely on the grounds of delay without considering the reasons for it and without providing a hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396395 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A. SASIKUMAR
• Assessee Lawyers: S. SRIDHAR; ERODE
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice; Co-operative Credit Society
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘डी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0019ी यस यस िव ने रिव, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम( BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3035/Chny/2024 िनधा 9रण वष9 /Assessment Year: 2017-18 EG54K Ramanathapuram Primary Agricultural Co-Operative Credit Society Ltd., 132/1, Kanjikovil Road, Salangapalaym, Kavindapadi, Erode – 638 455. Vs. The Income Tax Officer, Ward-2(1), Erode. [PAN: AAAAE 4064H] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थH की ओर से/ Appellant by : Shri S. Sridhar, Advocate (Erode) (By virtual) JKथH की ओर से /Respondent by : Shri A. Sasikumar, CIT सुनवा ई की ता रीख/Date of Hearing : 16.04.2025 घोषणा की ता रीख /Date of Pronouncement : 26.05.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A)-1, Surat [hereinafter “Addl. CIT(A)”] dated 30.09.2024 in the matter of assessment framed by Assessing Officer [AO] u/s. 143(3) of the Income-tax Act, 1961 (hereinafter “the Act”) dated 27.08.2019. ITA No.3035/Chny/2024 :- 2 -: 2. The assessee is a primary agricultural co-operative credit society and filed its return of income on 03.03.2018 declaring total income at Nil after claiming deduction u/s. 80P of the Act. The A.O in the assessment order passed u/s. 143(3) of the Act has not allowed the claim of deduction u/s. 80P(2)(a) of the Act and assessed income at Rs.6,77,098/-. Aggrieved, the assessee preferred an appeal before Ld. Addl. CIT(A). The Ld. Addl. CIT(A) held that the appeal was filed after delay of 457 days including the delay of 281 days attributed to the Covid-19 pandemic. The Ld Addl. CIT(A) therefore did not condone the delay and dismissed the assessee’s appeal. The Ld. Addl. CIT(A) after dismissing the appeal for not condoning the delay in filling the appeal has gone ahead and held that assessee is not eligible for 80P(2)(a) of the Act deduction without hearing the assessee. 3. The Ld. Authorized Representative (A.R) of the assessee before us has submitted that there was a genuine reason for delay in filing the appeal and the Ld. Addl. CIT(A) without providing opportunity had dismissed the appeal and therefore, he may be directed to condone the delay in filing the appeal of 457 days and adjudicated the appeal after providing proper opportunity . ITA No.3035/Chny/2024 :- 3 -: 4. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities. 5. We have heard the rival submissions, and perused the materials available on record. We find that the Ld. Addl. CIT(A) refused to condone the delay in filing the appeal of 457 days, which includes the delay of 281 days attributable to the Covid-19 pandemic. In our considered view, the Ld. CIT(A) was not justified in dismissing the purely on the ground of limitation without taking into account the reasons for the delay and without affording a proper opportunity of being heard to the assessee. In the interest of justice and considering the principles of natural justice, we are of the opinion that the delay ought to have condoned, and the appeal adjudicated on merits. Accordingly, we set aside the order passed by the Ld. Addl. CIT(A) and remit the matter to his file with a direction to condone the delay and decide the appeal afresh, after providing due opportunity of being heard to the assessee in accordance with law. The assessee is also directed to cooperate with the proceedings and appear before the Ld. Addl. CIT(A) on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes. ITA No.3035/Chny/2024 :- 4 -: 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 26th May, 2025. Sd/- Sd/- (यस यस िव ने रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 26th May, 2025. EDN/- आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Coimbatore 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "