KOLANDAPALAYAM PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCEITY,KONDAPALAYAM, V. INCOME TAX OFFICER, ERODE

ITA 1493/CHNY/2024

AI Insights

The case involves the Kolandapalayam Primary Agricultural Cooperative Credit Society appealing against the order of the Learned Commissioner of Income Tax (Appeals) at the National Faceless Appeal Center, Delhi, which confirmed the assessment order denying deduction under section 80P of the Income Tax Act for the assessment year 2012-13. The assesse faced a significant delay in filing the appeal, attributed to unfamiliarity with the faceless functioning of the Income Tax Department and the impact of COVID-19. The Tribunal found the reasons for delay sufficient but imposed costs due to habitual default in adhering to statutory timelines. The matter was remanded back to the CIT(A) for a thorough examination on merits.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 46409 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 14-08-2024
• Assessment Year: 2012-2013
• Appeal Filed On: 17-05-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAMUEL PITTA
• Assessee Lawyers: R.RESHMA
• Keywords: Set aside
• Section: 147; 143(3)

Judgement Text

"आयकर अपीलीय अधिकरण, ‘ए’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘ A’ BENCH: CHENNAI श्री एबी टी. वर्की, न्याययर्क सदस्य एवं श्री अमिताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No.1493 /Chny/2024 निर्धारण वर्ा /Assessment Years: 2012-13 Kolandapalayam Primary Agricultural Cooperative Credit Society, Kolandapalayam, Erugalur, Gobichettipalayam Taluk, Erode Dist, Tamil Nadu-638462 [PAN: AACAA1434B] Income Tax Officer, Ward-2(1), Erode (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Appellant by : Ms.R.Reshma, Advocate प्रत्यर्थी की ओर से /Respondent by : Dr.Samuel Pitta, JCIT सुनवाई की तारीख/Date of Hearing : 14.08.2024 घोषणा की तारीख /Date of Pronouncement : 13.11.2024 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed against the order bearing DIN & Order No.ITBA/NFAC/S/250/2022-23/1044249099(1) dated 28.07.2022 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment years 2012- 13. Through the aforesaid appeal the assesse has challenged order u/s 250 dated 28.07.2022 passed by NFAC, Delhi. ITA No.1493/Chny/2024 :- 2 -: 2.0 It has been noted that there is a delay of 599 days in the case, in filing of this appeal before the tribunal. In its affidavit the assesse has pleaded that the assesse is a Primary Agricultural Society and not conversant with the faceless working of the Income Tax Department. It was submitted that the assesse had filed an appeal before the CIT(A) contesting the order of Ld. AO denying the deduction u/s 80P. The assesse was not aware that his appeal was dismissed by the Ld. CIT(A) and learned of it only when it was filing its return of income for AY-2023- 24. All these activities contributed to the delay which was neither willful nor wanton. The assesse has submitted that the denial of deduction u/s 80P is not sustainable under the eyes of law and would be deleted during the judicial scrutiny. The assesse accordingly requested that the delay may be condoned and the appeal may be adjudicated. We have considered the justification put forth by the assesse and we are satisfied with their adequacy. We are also conscious of the fact that no litigant gains by intentionally delaying its own matters. The Ld. DR submitted that the assesse is a habitual defaulter and costs may be imposed. Accordingly, we hereby condone the delay and proceed to adjudicate this appeal. ITA No.1493/Chny/2024 :- 3 -: 3.0 At the outset the Ld. Counsel for the assesse informed that the Ld. First Appellate Authority has passed an ex-parte order thereby confirming the assessment order u/s 147 r.w.s 143(3) dated 12/12/19 and that the appeal was dismissed for being filed late without any justified grounds. It was pleaded that the assesse had committed delay of just 98 days and for which it had justified grounds. It was stated that the assesse is a primary agricultural society and was not conversant with electronic functioning of Income Tax. The assesse had also submitted that some delay is also attributable to Covid-19. It was argued that the CIT(A) has not given any decision on the merits of the case. The Ld. Counsel accordingly submitted the matter may be restored to Ld. CIT(A) for readjudication on its merits and that it shall make full compliance to the notices of Ld. CIT(A). The Ld. DR on the other hand is stated that assesse is habitual defaulter and does not deserves any leniency. 4.0 We have heard the rival submissions in the light of material available on records. It is trite law that no litigant benefits by non- prosecution of its case. Though we find sufficient force in the pleadings of the assesse as to why it could not file its appeal in time, it is noted that the assesse has defaulted with statutory timelines both before the Ld. First Appellate Authority as well as this Tribunal. The assesse therefore ITA No.1493/Chny/2024 :- 4 -: cannot go scott free and deserves imposition of costs. We therefore impose a costs of Rs. 5000/- upon the assesse to be deposited to the Tamil Nadu State Legal Services Authority of Hon’ble High Court of Madras within 30 days on receipt of this order and receipt thereof would be shown to the Ld. First Appellate Authority. 5.0 Coming to the order of Ld. First Appellate Authority, we have also noted that apart from merely harping on the issue of delayed filing by the assesse the Ld. CIT(A) has not touched upon merits of the case. We are therefore of the view that ends of justice would be met if the case is set aside to the file of the Ld. CIT(A) to condone the delay of 98 days in filing of appeal in this case and for readjudication after giving opportunities of being heard to the assesse and to pass a speaking order. The Ld. CIT(A) will be at liberty to call for any remand report from the Ld. AO if warranted by the facts of the case. The assesse shall be bound to comply to all the notices and details called by the Ld. CIT(A). Any non- compliance from the assesse side shall be adversely viewed. Accordingly, we set aside the order of the Ld. First Appellate Authority and direct him to readjudicate the matter de novo. Accordingly, the grounds of appeal raised by the assesse are allowed for statistical purposes. ITA No.1493/Chny/2024 :- 5 -: 6.0 In the result, the appeal of the assesse is allowed for statistical purposes. Order pronounced on 13th , November-2024 at Chennai. Sd/- ( एबी टी. वकी) (ABY T VARKEY) न्याययक सदस्य / Judicial Member Sd/- (अमिताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, ददनांक/Dated: 13th , November-2024. KB/- आदेश की प्रयतललपप अग्रेपषत/Copy to: 1. अपीलार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Coimbatore 4. पवभागीय प्रयतयनधि/DR 5. गार्ड फाईल/GF "