G770 METTUPALAYAM PACCS LTD.,TIRUVALLUR V. ITO, NCW-8(2), CHENNAI

ITA 767/CHNY/2025

AI Insights

The case involves G770 Mettupalayam Primary Agricultural Cooperative Credit Society Ltd., which appealed against the order of the Ld. Commissioner of Income Tax (Appeals) for the Assessment Year 2021-22. The society had filed its return of income declaring nil income, which was later assessed by the CPC, Bengaluru, determining the income at Rs.17,33,530. The society, being a Primary Agricultural Credit Co-operative Society, filed a condonation petition for the delay in filing the return due to the audit report being completed beyond the due date. The Chief Commissioner of Income Tax condoned the delay, but the CPC had already passed the order under Section 143(1) of the Act. The Tribunal found that the CIT(A) should have awaited the outcome of the condonation application before proceeding and thus remanded the case back to the CIT(A) to re-evaluate the claim under Section 80P.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633587 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: B.SURESH; C.A
• Keywords: Set aside
• Section: 119(2)(b)

Judgement Text

"आयकर अपीलीय अिधकरण ‘बी’ \u0010ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI मा ननीय \u001bी मनु क ुमा र िग र, \u0010ा ियक सद! एवं मा ननीय एस. आर. रघुना था , लेखा सद! क े सम) BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI HON’BLE S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No.767/Chny/2025 िनधा 9रण वष9 /Assessment Year: 2021-22 G770 Mettupalayam Primary Agricultural Cooperative Credit Society Ltd., No.3/125, Gangaiyamman Koil Street, Mettupalayam Village, Thiruverkadu Post, Tiruvallur – 600 077. [PAN: AABAG 3267D] Vs. The Income Tax Officer, Non Corporate Ward-8(2), Chennai. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथE की ओर से/ Appellant by : Shri B. Suresh, C.A GHथE की ओर से /Respondent by : Ms. Gouthami Manivasagam, JCIT सुनवाई की तारीख/Date of Hearing : 04.06.2025 घोषणा की तारीख /Date of Pronouncement : 10.06.2025 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member): This appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals) ADDL/JCIT(A)-1, Lucknow [CIT(A)] dated 27.02.2025 for Assessment Year 2021-22. 2. Brief facts of the case are that the assessee filed its return of income on 13.10.2023 declaring total income at Rs.Nil. The return was ITA No.767/Chny/2025 G770 Mettupalayam PACCS Ltd. :- 2 -: processed u/s 143(1) of the Act on 13.12.2024, determining the total income at Rs.17,33,530/-. The ld.CIT(A) upheld the order of the CPC, Bengaluru. Now assessee is in further appeal before us. 3. Before us, the Ld. counsel submitted that the assessee is a Primary Agricultural Credit Co-operative Society (PACCS). For AY 2021-22 the audit report was completed beyond the due date u/s 139(1) of the Act, hence assessee filed a condonation petition u/s 119(2)(b) of the Act before the Chief Commissioner of Income Tax [‘CCIT’ in short], Chennai-1 who passed order dated 05.03.2025 who condoned the delay in filing return of income for the purpose of claim of deduction u/s 80P of the Act (para 3.4 of CCIT order]. However, in the meanwhile the CPC has passed the order u/s 143(1) of the Act on 13.12.2024 despite pending condonation petition u/s 119(2)(b). The ld. counsel prayed that in the light of the order of the Ld. CCIT dated 05.03.2025, the appeal may be set aside to the Ld. CIT(A) to re-look the issue of claim u/s 80P of the Act. 4. The Ld. DR has not objected to the contentions of the ld. counsel. ITA No.767/Chny/2025 G770 Mettupalayam PACCS Ltd. :- 3 -: 5. We have heard the both parties. We are of the considered view that the Ld. CIT(A) should have waited for the outcome of the condonation application filed before the appropriate authority for the delayed return of income. However, we find that condonation petition filed u/s 119(2)(b) of the Act before the Chief Commissioner of Income Tax [‘CCIT’ in short], Chennai-1 has been allowed by the Ld. CCIT vide order dated 05.03.2025. The Ld. CCIT condoned the delay in filing return of income for the purpose of claim of deduction u/s 80P of the Act. Hence, we set aside and remand back the appeal to the file of the Ld. CIT(A) to deal with the claim of the assessee u/s 80P of the Act as per law. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 10th day of June, 2025 at Chennai. Sd/- Sd/- (एस. आर. रघुनाथा) (S.R. Raghunatha) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member (मनु क ुमार िग र) (Manu Kumar Giri) \u0010ाियक सद! / Judicial Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 10th June, 2025. EDN/- ITA No.767/Chny/2025 G770 Mettupalayam PACCS Ltd. :- 4 -: आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "