KOTAPADUPRIMARY AGRICULTURAL COOPERATIVE SOCIETY,PRAKASAM V. ITO., WARD-1, ONGOLE

ITA 764/HYD/2025

AI Insights

The case involves two appeals by the Kotapadu Primary Agricultural Cooperative Society against the orders of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for the Assessment Years 2018-19 and 2019-20. The appeals were consolidated due to identical issues involved. The primary contention was regarding the legal infirmities in the assessment orders passed under section 147 read with section 144B of the Income Tax Act, 1961, including issues related to the validity of notices and the procedural adherence in issuing them. The Tribunal found procedural lapses in the handling of the appeals by the CIT(A) and directed a re-examination of the cases.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 829849 (ITAT-HYDERABAD)
• Duration Of Justice: 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Hyderabad
• Assessment Year: misc
• Appeal Filed On: 30-04-2025
• Other Referred Cases: National Thermal Power Co. Ltd. v. CIT (1998) 229 ITR 383 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANKAR PANDIT P
• Assessee Lawyers: C.A C. SUBRAHAMANYAM
• Keywords: Condonation of delay; Set aside; Opportunity of being heard; Principle of natural justice
• Section: 147; 144

Judgement Text

" ITA Nos 763 and 764 of 2025 Kotapadu Primary Agricultural Cooperative Society Page 1 of 7 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ DB-A ‘ Bench, Hyderabad Įी ͪवजय पाल राव, उपाÚ य¢ एवं Įी मधुसूदन सावͫडया, लेखा सदè य क े सम¢ । Before Shri Vijay Pal Rao, Vice-President A N D Shri Madhusudan Sawdia, Accountant Member आ.अपी.सं /ITA Nos.763 & 764/Hyd/2025 (िनधाŊरण वषŊ/Assessment Years: 2018-19 & 2019-20) Kotapadu Primary Agricultural Cooperative Society, PRAKASAM PAN:AABAK5758P Vs. Income Tax Officer Ward – 1 ONGOLE (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: C.A C. Subrahamanyam राज̾ व Ȫारा/Revenue by: Shri Sankar Pandit P, Sr. DR सुनवाई की तारीख/Date of hearing: 05/01/2026 घोषणा की तारीख/Pronouncement: 16/01/2026 आदेश/ORDER Per Madhusudan Sawdia, A.M.: These two appeals are filed by Kotapadu Primary Agricultural Cooperative Society (“the assessee”), feeling aggrieved by the separate orders passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”) both dated 28.02.2025 for the A.Y 2018-19 and A.Y. 2019-20 respectively. Since identical issues are involved in these two appeals, for the sake of convenience, these were Printed from counselvise.com ITA Nos 763 and 764 of 2025 Kotapadu Primary Agricultural Cooperative Society Page 2 of 7 heard together and are being disposed of by this common and consolidated order. ITA No.763/Hyd/2025 for A.Y. 2018-19: 2. The assessee has raised the following grounds of appeal: Printed from counselvise.com ITA Nos 763 and 764 of 2025 Kotapadu Primary Agricultural Cooperative Society Page 3 of 7 3. The assessee has also raised the following additional grounds of appeal: “1. The assessment order passed under section 147 r.w.s. 144B is vitiated by legal infirmities. The notices issued by the jurisdictional A.O (ITO Ward-1,Ongole) under sections 148A(d) dated 07.04.2022 and 148 dated 09.04.2022 are contrary to the mandatory provisions of sections 144B, 130 and 151A of the Income Tax Act, and therefore, invalid. 2. The show cause notice under section 148A(b) dated 24.03.2022, served on the same day, is invalid for failure to provide the statutorily required 7 clear days for compliance. As per settled legal principles, exclusion of the date of service and the terminal date is mandatory. The re-assessment initiated on the basis of such a defective notice is bad in law and void ab initio. 3. The notice under section 148 was issued without obtaining prior approval from the specified authority as required under section 151, rendering the proceedings invalid and unsustainable in law”. 4. The Learned Authorized Representative (“Ld. AR”) has submitted that the assessee is not pressing the additional ground no. 2. He further submitted that the additional grounds so raised are admissible in view of judgment rendered by the Hon’ble Supreme Court in the case of National Thermal Power Co. Ltd. v. CIT (1998) 229 ITR 383 (SC). The Learned Departmental Representative (“Ld. DR”) did not raise any objection for admission of the additional grounds. The prayer for admission of additional grounds is being admitted for adjudication in terms of Rule 11 of the Income Tax (Appellate Tribunal) Rules, 1963 owing to the fact that objections raised in additional grounds are legal in nature for which relevant facts are stated to be emanating from the existing records. Printed from counselvise.com ITA Nos 763 and 764 of 2025 Kotapadu Primary Agricultural Cooperative Society Page 4 of 7 5. The brief facts of the case are that the assessee is a Primary Agricultural Cooperative Society, filed an appeal before the Ld. CIT(A) against the assessment order passed by the Learned Assessing Officer (“Ld. AO”) for Assessment Year 2018–19 under section 147 read with sections 144 and 144B of the Income Tax Act, 1961 (“the Act”), dated 26.02.2024. However, there was a delay of 37 days in filing the said appeal before the Ld. CIT(A). The Ld. CIT(A) dismissed the appeal on the ground of limitation, holding that the assessee had failed to establish sufficient cause for condonation of delay as required under section 249(3) of the Act. 6. Aggrieved by the order of the Ld. CIT (A), the assessee is in further appeal before this Tribunal. The assessee has filed a petition for condonation of delay along with an affidavit explaining the reasons for the delay in filing the appeal before the Ld. CIT(A). It has been submitted that the assessee is a Primary Agricultural Cooperative Society having about 1,000 members and is engaged in accepting deposits and providing agricultural crop loans and other financial assistance to its members. It was explained that during the relevant period, the Chief Executive Officer and the staff of the society were heavily engaged in year-end activities such as finalization of accounts, computation and distribution of interest, renewal of loans of members, reconciliation and confirmation of balances in respect of loans obtained from Prakasam District Co-operative Bank, Addanki Branch, and other Printed from counselvise.com ITA Nos 763 and 764 of 2025 Kotapadu Primary Agricultural Cooperative Society Page 5 of 7 statutory and administrative compliances. Due to such heavy involvement in statutory and administrative work, the delay in filing the appeal occurred. It was further submitted that the delay was neither deliberate nor intentional and occurred due to bona fide and unavoidable circumstances. Accordingly, the assessee prayed that the delay in filing the appeal may be condoned and the appeal may be admitted for adjudication on merits. 7. Per contra, the Learned Departmental Representative (“Ld. DR”) did not raise any serious objection to the prayer for condonation of delay. 8. We have carefully gone through the order of the Ld. CIT(A) and find that the assessee failed to comply with the notice issued by the Ld. CIT(A) dated 23.12.2024 and sought an adjournment of 30 days in response to notice dated 31.12.2024. However, after seeking such adjournment, the assessee did not respond thereafter till the passing of the order by the Ld. CIT(A) on 20.02.2025. The assessee also did not file any explanation for the delay along with supporting documentary evidence before the Ld. CIT(A). The petition for condonation of delay along with affidavit has been filed for the first time before this Tribunal, and therefore, the Ld. CIT(A) had no occasion to examine the same. In view of the present facts and considering the principles of natural justice, we deem it appropriate to set aside the impugned order on this limited issue and remit the matter back to the file of the Ld. CIT(A) Printed from counselvise.com ITA Nos 763 and 764 of 2025 Kotapadu Primary Agricultural Cooperative Society Page 6 of 7 with a direction to first adjudicate upon the condonation petition along with the affidavit filed by the assessee. If the Ld. CIT(A) is satisfied with the explanation and condones the delay, he shall thereafter proceed to adjudicate the appeal on merits, including the additional grounds admitted by this Tribunal, in accordance with law after providing reasonable opportunity of being heard to the assessee. 9. In the result, the appeal of the assessee in ITA No. 763/Hyd/2025 is allowed for statistical purposes. ITA No. 764/Hyd/2025 for A.Y. 2019-20. 10. The next issue involved in this appeal is identical to the issues raised in ITA No.763/Hyd/2025 for the A.Y. 2018-19. Therefore, our observations and findings in ITA No.763/Hyd/2025 shall mutatis mutandis apply to this appeal also. Accordingly, we set aside the impugned order to the file of the Ld. CIT(A) with a direction to first adjudicate upon the condonation petition along with the affidavit filed by the assessee. If the Ld. CIT(A) is satisfied with the explanation and condones the delay, he shall thereafter proceed to adjudicate the appeal on merits, including the additional grounds admitted by this Tribunal, in accordance with law after providing reasonable opportunity of being heard to the assessee. Printed from counselvise.com ITA Nos 763 and 764 of 2025 Kotapadu Primary Agricultural Cooperative Society Page 7 of 7 11. In the result, the appeal of the assessee in ITA No. 764/Hyd/2025 is allowed for statistical purposes. 12. To sum up, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the Open Court on 16th January 2026. Sd/- Sd/- (VIJAY PAL RAO) VICE PRESIDENT (MADHUSUDAN SAWDIA) ACCOUNTANT MEMBER Hyderabad dated 16th January 2026. Vinodan/sps Copy to: S.No Addresses 1 Kotapadu Primary Agricultural Cooperative Society, 3-2-C/O- Bhavanam, Brahma Kotapadu (Vg & POST), JPANGULURU (MD) Prakasam 523261 A.P 2 Income Tax Officer Ward – 1 Roshan Plaza, 8th Line, Ram Nagar, Ongole 523001 A.P 3 Pr. CIT - Guntur 4 DR, ITAT Hyderabad Benches 5 Guard File By Order Printed from counselvise.com "