KK 168 NARIPALLI PACS LD.,NARIPALLI V. ITO, WARD-1, DHARMAPURI

ITA 1619/CHNY/2025

AI Insights

The case involves KK 168 Naripalli Primary Agri. Co-operative Society Limited, which appealed against the order of the Addl/JCIT(A)-1, Bengaluru, for the assessment year 2022-23. The primary issue was the disallowance of exemption claimed under section 80P of the Income Tax Act, 1961, due to the late filing of the income tax return. The assessee argued that the delay was caused by the late audit by the Tamil Nadu Co-operative Department, which was beyond their control. The Tribunal found merit in the assessee's argument and decided to remand the matter for fresh adjudication, pending the decision on the condonation petition for the delay in filing the return.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 773435 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2022-2023
• Appeal Filed On: 02-06-2025
• Other Referred Cases: Veerappampalayam PACS v. ITO in ITA No. 592/Chny/2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANDHYA RANI KURE
• Assessee Lawyers: S.P.CHIDAMBARAM
• Keywords: Condonation of delay; Competent authority
• Section: 119(2)(b)

Judgement Text

"आयकर अपीलीय अिधकरण, ’ए’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी रȉेश नंदन सहाय, लेखा सद˟ क े समƗ Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Ratnesh Nandan Sahay, Accountant Member आयकर अपील सं./I.T.A. No.1619/Chny/2025 िनधाŊरण वषŊ/Assessment Year: 2022-23 KK 168 Naripalli Primary Agri. Co- operative Society Limited, Naripalli, Harur Taluk, Dharmapuri District, Tamil Nadu 636 906. [PAN:AABAK5075F] Vs. The Income Tax Officer, Ward 1, Dharmapuri. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri S.P. Chidambaram, Advocate ŮȑथŎ की ओर से/Respondent by : Ms. Sandhya Rani Kure, JCIT सुनवाई की तारीख/ Date of hearing : 18.09.2025 घोषणा की तारीख /Date of Pronouncement : 23.09.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 04.04.2025 passed by the Addl/JCIT(A)-1, Bengaluru for the assessment year 2022-23. 2. We find that this appeal is filed with a delay of 2 days. The assessee filed an affidavit for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, we find the reasons stated by the assessee are bonafide, which really Printed from counselvise.com I.T.A. No.1619/Chny/25 2 prevented in filing the appeal in time. Thus, the delay is condoned and admitted the appeal for adjudication. 3. The assessee raised 7 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is justified in confirming the disallowance of exemption claimed under section 80P of Income Tax Act, 1961 [“Act” in short] in the facts and circumstances of the case. 4. At the outset, the ld. AR Shri S.P. Chidambaram, Advocate submits that the assessee is a Primary Agricultural Cooperative Society Registered under Tami Nadu Cooperative Society Act 1983 and the Society is under the obligation to get the books of accounts audited. The statutory Auditor of the Society is the Tamil Nadu Co-operative Department. He submits that the audit reports for AY 2021-22 was completed belatedly and the Cooperative Department has not taken up the audit on time. He further submits that due to delay in non-completion of Cooperative audit, the assessee was not able to file income tax returns on or before 07.11.2022. The ld. AR submits that the assessee filed condonation petition under section 119(2)(b) of the Act for condoning the delay in filing return of income and same is pending before CCIT, Coimbatore. By relying upon the decision in the case of AA520 Printed from counselvise.com I.T.A. No.1619/Chny/25 3 Veerappampalayam PACS v. ITO in ITA No. 592/Chny/2025 dated 30.04.2025, the ld. AR prayed that the matter may be remanded to the file of the ld. CIT(A) for fresh adjudication. 5. The ld. DR Ms. Sandhya Rani Kure, JCIT relied on the order passed by the ld. CIT(A). 6. We have heard both the parties and perused the material available on record. We find that the ld. CIT(A) confirmed the disallowance of claim of deduction under section 80P of the Act as the assessee has not filed the return of income within the due date prescribed under the Act. We find force in the argument of the ld. AR that the ld. CIT(A) was not justified in dismissing the appeal of the assessee pending receipt of decision of the CCIT, Coimbatore against the condonation petition filed under section 119(2)(b) of the Act for condoning the delay in filing the ITR. We note that the assessee has raised a specific ground that the condonation petition has been filed before the CCIT, Coimbatore and his order is awaited. By following the order of this Tribunal in the case of AA520 Veerappampalayam PACS v. ITO (supra) and considering the identical facts of the case, we deem it proper to remand the matter to the file of the ld. CIT(A) to decide the issue on merits taking into account the order of the ld. CCIT, Coimbatore on the delay condonation petition filed under Printed from counselvise.com I.T.A. No.1619/Chny/25 4 section 119(2)(b) of the Act dated 01.06.2025, which is pending before the ld. CCIT being the competent authority. Thus, the grounds raised by the assessee are allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 23rd September, 2025 at Chennai. Sd/- Sd/- (RATNESH NANDAN SAHAY) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 23.09.2025 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. Printed from counselvise.com "