K 2082 NERUPERUCHAL PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY,TIRUPUR V. INCOME TAX OFFICER, WARD 1 (4) TIRUPUR, TIRUPUR

ITA 2610/CHNY/2024

AI Insights

The case involves the Neruperuchal Primary Agricultural Co-op. Credit Society, which appealed against the order of the Learned Commissioner of Income Tax (Appeals), Tiruvananthapuram, for the Assessment Year 2018-19. The primary issue was the refusal to condone a delay of 1023 days in filing an appeal, which led to the dismissal of their earlier appeal and the confirmation of an intimation order denying a deduction under Section 80P of the Income Tax Act. The Tribunal noted that a substantial part of the delay was due to the COVID-19 pandemic and considered the condonation of delay by the CBDT, thus allowing the deduction.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107497 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2018-2019
• Other Referred Cases: Badarinath v. Tamil Nadu AIR 2000 SC 3243
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.ANITA
• Assessee Lawyers: A. VIJAYALAKSHMI
• Keywords: Condonation of delay

Judgement Text

"आयकर अपीलीय अिधकरण, ’सी’ \u0001यायपीठ, चे\tई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0001ी एबी टी. वक , \u000bाियक सद\u0011 एवं एवं एवं एवं \u0001ी जगदीश, लेखा सद\f क े सम\u0015 BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2610/Chny/2024 िनधा\u000eरणवष\u000e/Assessment Year: 2018-19 K 2082 Neruperuchal Primary- Agricultural Co-op. Credit Society, Vavipalayam Post, Perumanallur via Tirupur, Tirupur-641 666. v. The ITO, Ward-1(4), Tirupur. [PAN: AAEAK 3702 G] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Ms.A. Vijayalakshmi, CA \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Ms. R. Anita, Addl.CIT सुनवाईक\u001aतारीख/Date of Hearing : 26.12.2024 घोषणाक\u001aतारीख /Date of Pronouncement : 31.01.2025 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee Primary Agricultural Co- operative Credit Society against the order of the Learned Commissioner of Income Tax (Appeals)/Addl./JCIT(A), Tiruvananthapuram, (hereinafter in short \"the Ld.CIT(A)”), dated 12.08.2024 for the Assessment Year (hereinafter in short \"AY”) 2018-19. 2. The main grievance of the assessee is against the action of the First Appellate Authority refusing to condone the delay of ‘1023’ days in filing ITA No.2610/Chny/2024 (AY 2018-19) K 2082 Neruperuchal Primary – Agricultural Co-op. Credit Society :: 2 :: of the appeal before him, which resulted in dismissing the appeal of assessee and thereby confirming the intimation order passed by the CPC u/s.143(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act‘) dated 31.05.2019 denying deduction u/s.80P of the Act. 3. The brief facts are that the assessee Society had filed its return of income (RoI) for AY 2018-19 on 01.03.2019 belatedly admitting Rs.NIL taxable income after claiming deduction of Rs.22,54,820/- u/s.80P of the Act. Since the RoI wasn’t filed on or before 31.10.2018, the deduction was denied by the CPC by invoking the provisions of Sec.80AC of the Act. In order to condone the delay, assessee had initially filed application before the Ld.PCIT on 25.04.2019 u/s.119(2)(b) of the Act which was rejected by order dated 07.05.2021; and pursuant to it, the assessee preferred an appeal before the CBDT/CCIT which was allowed vide order dated 13.05.2024 [copy of which has been placed before us]. 4. Taking note of the relevant fact that the assessee’s application u/s.119(2)(b) of the Act seeking condonation of delay in filing of the RoI to claim deduction u/s.80P r.w.s.80AC(ii) of the Act has been allowed and also taking note of the crucial fact the main cause of the delay being the Covid-19 pandemic, i.e, the delay of more than ‘800’ days (out of 1023 days) falls during the period covered by Covid-19 pandemic and considering the fact that assessee society is a Primary Credit Society, we ITA No.2610/Chny/2024 (AY 2018-19) K 2082 Neruperuchal Primary – Agricultural Co-op. Credit Society :: 3 :: are inclined to condone the delay in filing of the appeal before the Ld.CIT(A); and since the only reason given by the CPC to deny the deduction was belated filing of RoI, which has been condoned by the CBDT vide order dated 13.05.2024, we find no valid reason to deny the deduction u/s.80P of Rs.22,54,820/-. In such a scenario, the legal maxim “sublato Fundmento Credit opus” is squarely applicable, meaning in case a foundation is removed, the super-structure falls. In Badarinath v. Tamil Nadu AIR 2000 SC 3243, the Hon’ble Supreme Court held that once the basis of proceedings is gone, all consequential orders & acts would fall on the ground automatically which is applicable to judicial and quasi judicial proceedings. In the light of the above discussion, we direct the AO to allow deduction u/s.80P of the Act to the tune of Rs.22,54,820/-. 5. In the result, appeal filed by the assessee is allowed. Order pronounced on the 31st day of January, 2025, in Chennai. Sd/- Sd/- (जगदीश) (JAGADISH) लेखा सद\f/ACCOUNTANT MEMBER (एबी टी. वक ) (ABY T. VARKEY) \u0001याियक सद\bय/JUDICIAL MEMBER चे\tई/Chennai, !दनांक/Dated: 31st January, 2025. TLN, Sr.PS ITA No.2610/Chny/2024 (AY 2018-19) K 2082 Neruperuchal Primary – Agricultural Co-op. Credit Society :: 4 :: आदेश क\u001a \u0017ितिलिप अ$ेिषत/Copy to: 1. अपीलाथ\u0010/Appellant 2. \u0011\u0012थ\u0010/Respondent 3. आयकरआयु\u0018/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u0011ितिनिध/DR 5. गाड फाईल/GF "