K121 KARAPADI PRIMARY AGRICULTURAL COOPERATIVE SOCIETY LIMITED,KARAPADI V. INCOME TAX OFFICER, ERODE

ITA 2796/CHNY/2024

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The case involves the K 121 Karapadi Primary Agricultural- Co-op. Society Ltd., which appealed against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, Delhi, for the Assessment Year 2018-19. The society, registered under the Tamil Nadu Cooperative Societies Act, 1983, faced a delay in filing their appeal due to the elected office bearers' unfamiliarity with digital communication. The tribunal noted the society's lack of awareness of the impugned order and the subsequent delay in filing the appeal. The tribunal, considering the circumstances and citing precedents, decided to condone the delay and remand the case back to the CIT(A) for a decision on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 106991 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Other Referred Cases: B. Madhuri Goud v. B. Damodar Reddy [2012] 12 SCC 693, Alarcity Housing Ltd. [2010] 327 ITR 139 (Madras HC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHWIN D. GOWDA
• Assessee Lawyers: RESHMA
• Keywords: Set aside

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ \u0001यायपीठ, चे\tई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0001ी एबी टी. वक , \u000bाियक सद\u0011 एवं एवं एवं एवं \u0001ी मनोज क ुमार अ\u0019वाल, लेखा सद\u0007 क े सम\u001d BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2796/Chny/2024 िनधा\u000eरण वष\u000e/Assessment Year: 2018-19 K 121 Karapadi Primary Agricultural- Co-op. Society Ltd., 151-2, Near Nayampalayam Pirivu Bus Stop, Near Karapadi, Gobichettipalayam-638 459. v. The ITO, Ward-2(1), Erode. [PAN: AABAK 4297 M] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Ms. Reshma, Advocate \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Mr. Ashwin D. Gowda, Addl.CIT सुनवाईक\u001aतारीख/Date of Hearing : 27.01.2025 घोषणाक\u001aतारीख /Date of Pronouncement : 26.02.2025 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter referred to as ‘Ld.CIT(A)‘), Delhi, dated 22.03.2023 for the Assessment Year (hereinafter referred to as ‘AY‘) 2018-19. ITA No.2796/Chny/2024 (AY 2018-19) K 121 Karpadi Primary Agricultural- Co-op. Society Ltd. :: 2 :: 2. At the outset, it is noted that there is a delay of ‘521’ days in filing of the appeal. In this regard, it is noted that the assessee is a Primary Agricultural Co-operative Society registered under the Tamil Nadu Cooperative Societies Act, 1983 and the assessee society is run by elected office bearers who are mainly from the rural/farming sector; and are not used to communication through e-mail, etc. According to assessee, the reason for the cause of the delay was because it was not aware of the passing of the impugned order by the Ld.CIT(A)/NFAC on 22.03.2023 for AY 2018-19; and when the assessee came to know about the dismissal of its appeal on 20.10.2024, then, immediately it filed the appeal before this Tribunal on 02.11.2024. The assessee pleaded for condoning the delay and cited the decision of the Hon’ble Supreme Court in the case of B. Madhuri Goud v. B. Damodar Reddy reported in [2012] 12 SCC 693, wherein it was observed that liberal view should be taken while considering the delay, so that substantial justice is achieved; and for technical consideration, substantial justice should not be sacrificed. In this regard, the assessee also cited the decision of the Hon’ble Madras High Court in the case of Alarcity Housing Ltd., reported in [2010] 327 ITR 139 (Madras HC) and several other decisions and prayed for condoning the delay. ITA No.2796/Chny/2024 (AY 2018-19) K 121 Karpadi Primary Agricultural- Co-op. Society Ltd. :: 3 :: 3. Per contra, the Ld.DR doesn’t want us to condone the delay and want us to dismiss the appeal. 4. We have heard both the parties and perused the material available on record. We note that the assessee is a Agricultural Co-operative Society and it filed its return for AY 2018-19 on 12.07.2019 declaring NIL income. Assessee society is noted to have claimed deduction u/s.80P(2) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act‘) and its return was processed u/s.143(1) of Act vide intimation dated 12.07.2019 by making adjustment of Rs.2,60,570/- denying deduction u/s.80P(2) of the Act. As noted, the assessee is a Primary Agricultural Co-operative Society, which consists of members who are mainly farmers and the office bearers are selected from the members, who were not familiar with the internet/computer and not used to communication through e-mail, which resulted in not responding to the five (5) notices sent to their e-mail IDs, etc., which omission resulted in the passing of the impugned order dated 22.03.2023; and only in the third week of October, 2024, they came to know about the passing of the impugned order and then, they immediately filed the appeal within ‘15’ days i.e. on 02.11.2024. Considering the explanation given (supra) and taking note of the fact that the assessee is a Primary Agricultural Co-operative Society and that they were not familiar with the computers, prevented them from looking in to ITA No.2796/Chny/2024 (AY 2018-19) K 121 Karpadi Primary Agricultural- Co-op. Society Ltd. :: 4 :: the in-box of their email account, resulted in the communications sent by department unanswered from the side of assessee, which resulted in passing of ex-parte order because, they were in the dark about the passing of the impugned order, and ultimately it led to belated filing of Appeal before this Tribunal, which we are inclined to condone, since substantial justice should not be defeated for assessee’s omission to inspect/use of the in-box of the e-mail etc., which led to the passing of the ex parte impugned order. And since no gross negligence or latches could be shown on the part of the assessee, considering the overall facts, and for the interest of justice and fair play, the delay caused are condoned and proceed to examine the appeal. 5. At the outset, the Ld.AR of the assessee pointed out that the impugned order is an ex parte order qua assessee. We note that the Ld.CIT(A) has not decided the grounds of appeal on merits as required u/s.250(6) of the Act. In such circumstances, for the ends of justice and fair play, we set aside the impugned order of the Ld.CIT(A) and restore the appeal back to his file with a direction to decide the appeal on merits after hearing the assessee. Ms. R.Reshma, Ld.AR of the assessee undertakes to file relevant documents/written submissions before the Ld.CIT(A) and the Ld.CIT(A) is directed to decide the grounds of appeal as per sub-section (6) of sec.250 of the Act. ITA No.2796/Chny/2024 (AY 2018-19) K 121 Karpadi Primary Agricultural- Co-op. Society Ltd. :: 5 :: 6. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 26th day of February, 2025, in Chennai. Sd/- (मनोज क ुमार अ\u0019वाल) (MANOJ KUMAR AGGARWAL) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (एबी टी. वक ) (ABY T. VARKEY) \u0005याियक सद\u0003य/JUDICIAL MEMBER चे\tई/Chennai, \u001fदनांक/Dated: 26th February, 2025. TLN, Sr.PS आदेश क\u001a \u0017ितिलिप अ\"ेिषत/Copy to: 1. अपीलाथ\f/Appellant 2. \r\u000eथ\f/Respondent 3. आयकरआयु\u0014/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\rितिनिध/DR 5. गाड\u001dफाईल/GF "