K860 MAKKINAMKOMBAI PRIMARY AGRICULTURAL CO OPERATIVE SOCIETY LIMITED,ERODE V. THE INCOME TAX OFFICER, WARD 2(1), ERODE

ITA 386/CHNY/2026

AI Insights

The case involves K860 Makkinambombai Primary Agricultural Cooperative Society Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi. The primary issue was the non-condonation of delay in filing the appeal and the treatment of cash deposits as unexplained money under section 69A of the Income Tax Act, 1961. The assessee did not file a return for the Assessment Year 2018-19, leading to a reopened assessment by the Assessing Officer (A.O.), who treated substantial cash deposits as unexplained. The CIT(A) dismissed the appeal due to a delay of 153 days, which was not condoned as the assessee failed to provide cogent reasons for the delay.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 845907 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Chennai
• Assessment Year: 2018-2019
• Appeal Filed On: 27-01-2026
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BIPIN C.N
• Assessee Lawyers: A. VIJAYALAKSHMI; C.A VIRTUAL
• Section: 148

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ ा यपीठ, चे\u0012ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0015ी जॉज\u0018 जॉज\u0018 क े, उपा \u001a\u001b एवं सु\u0015ी पदमा वती यस, लेखा सद$ क े सम\u001b BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENTAND MS. PADMAVATHY.S, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.386/Chny/2026 िनधा \u0018रण वष\u0018 /Assessment Year: 2018-19 K860 Makkinamkombai Primary Agricultural Cooperative society Ltd., 5/221, Gobi Main Road, Arasur P.O, Sathyamangalam Tk., Erode – 638 454. PAN: AABAK 4021H Vs. The Income Tax Officer, Ward-2(1), Erode. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थ( की ओर से/ Appellant by : Ms. A. Vijayalakshmi, C.A(virtual) *+थ( की ओर से /Respondent by : Mr. Bipin C.N, CIT सुनवा ई की ता रीख/Date of Hearing : 19.03.2026 घोषणा की ता रीख /Date of Pronouncement : 24.03.2026 आदेश / O R D E R PER PADMAVATHY.S, A.M: This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, (in short \"CIT(A)\") passed u/s. 250 of the Income Tax Act, 1961 (in short \"the Act\") dated 19.11.2025 for Assessment Year (AY) 2018-19. 2. The assessee is a primary agricultural cooperative society. The assessee did not file the return of income for AY 2018-19. The A.O received information that the assessee has made cash deposit amounting to Printed from counselvise.com ITA No.386/Chny/2026 K860 Makkinambombai Primary Agricultural Cooperative society Ltd., :- 2 -: Rs.52,59,556/- and withdrawal of Rs. 1,39,00,000/-. Since, the assessee did not file the return of income, the A.O reopened the assessment by issue of notice u/s. 148 of the Act. The assessee did not file the return in response to notice u/s. 148 of the Act and did not file any details before the A.O. Therefore, the A.O treated the entire cash deposits to the tune of Rs.2,49,42,681/- as unexplained money u/s. 69A of the Act. The A.O also treated the interest income as addition amounting to Rs.1,81,457/-. Aggrieved, the assessee filed further appeal before the CIT(A). There was a delay of 153 days in filing the appeal before the CIT(A). The CIT(A), did not condone the delay stating that the assessee did not furnish any cogent reasons for condoning the delay. The CIT(A) also denied the benefit of section 80P(2)(a)(i) of the Act stating that the assessee did not file the return of income and no deduction can be allowed as per section 80AC of the Act. Aggrieved, the assessee filed further appeal before the CIT(A). 3. We have heard the parties, and perused the material available on record. The Ld. Authorized Representative (AR) of the assessee submitted that the assessee is not aware of the income tax proceedings and completely relied on his counsel for handling the tax matters. The Ld. AR further submitted that there is a change in the auditor of the assessee and the new counsel of the assessee did not provide proper professional support. The Ld. AR also submitted that the assessee therefore was not aware that the A.O has passed the assessment order. The ld. AR accordingly prayed for one more opportunity. From the perusal of records, we notice that the assessee has stated the reasons for delay in filing the appeal before the CIT(A) as part of Form 35 and did not file any separate condonation petition or affidavit explaining the reasons. Considering the facts and circumstances unique to the Printed from counselvise.com ITA No.386/Chny/2026 K860 Makkinambombai Primary Agricultural Cooperative society Ltd., :- 3 -: assessee's case, we are inclined to give one more opportunity to the assessee. Further, lower authorities have not examined the impugned issue on merits since the assessee did not respond to AO's notices and that the CIT(A) has dismissed the appeal in limine. We therefore, remit the appeal back to the CIT(A) for fresh consideration of the delay petition. The Ld. AR raised certain legal contentions with regard to the addition made by the A.O. Since we have remitted the appeal back to the CIT(A) for fresh consideration of the condonation petition, we direct the CIT(A) that if the delay is condoned then to consider the legal contentions as well as the impugned issue on merits by calling for necessary details as may be required in order to decide the case in accordance with law. The assessee is directed to file affidavit explaining the reason for delay in filing the appeal along with a condonation petition. The assessee further directed to file any further details as may be called for with regard to the impugned additions made by the AO and cooperate with appellate proceedings without seeking unnecessary adjournments. It is ordered accordingly. 4. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 24th day of March, 2026 at Chennai. Sd/- Sd/- (जॉज\u0018 जॉज\u0018 क े) (George George K) उपा \u001a\u001b / Vice President (पदमा वती यस) (Padmavathy.S) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 24th March, 2026. EDN, Sr. P.S Printed from counselvise.com ITA No.386/Chny/2026 K860 Makkinambombai Primary Agricultural Cooperative society 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/Madurai/Coimbatore/Salem 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com EJTADA DURGA NARESH Digitally signed by EJTADA DURGA NARESH Date: 2026.03.27 12:45:11 +05'30' "