M/S. TJSPL 3 SOORAPPALLAM PACCS LTD.,THANJAVUR V. ITO, WARD-1(1), THANJAVUR

ITA 1013/CHNY/2025

AI Insights

The case involves two appeals by M/s. TJSPL 3 Soorappalam PACCS Ltd. against the orders of the Income Tax Officer and the CIT(A) for the Assessment Year 2017-18. The appeals were related to the denial of deduction under Section 80P of the Income Tax Act and a penalty under Section 270A. The CIT(A) had dismissed the appeals ex-parte due to non-compliance by the assessee in responding to notices. The Tribunal found that the CIT(A) had not adjudicated the issues on merits and thus restored both appeals to the CIT(A) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669477 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: D.ANAND
• Keywords: Set aside
• Section: 147; 144

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी एबी टी. वक , \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.1013 & 1014/Chny/2025 िनधा<रण वष< /Assessment Years: 2017-18 M/s. TJSPL 3 Soorappallam Primary Agricultural Cooperative Credit Society Ltd., Soorappallam, Pattukkottai, Thanjavur – 614 601. Vs. The Income Tax Officer, Ward-1(1), Thanjavur. [PAN: AACAT 8601R] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथ की ओर से/ Appellant by : Shri D. Anand, Advocate JKथ की ओर से /Respondent by : Shri Shiva Srinivas, CIT सुनवाई की तारीख/Date of Hearing : 17.06.2025 घोषणा की तारीख /Date of Pronouncement : 26.06.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid two appeals filed by the assessee for Assessment Years (AYs) 2017-18 arises out of the orders of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 13.09.2024 & 18.09.2024. ITA Nos.1013 & 1014/Chny/2025 M/s. TJSPL 3 Soorappalam PACCS Ltd. :- 2 -: ITA No.1013/Chny/2025 (Quantum Appeal): 2. There is a delay of 129 days in filing the appeal by the assessee. The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. We have considered the petition/affidavit of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned. 3. The assessee is a trust and filed its return of income belatedly on 21.01.2019, declaring a total income of Nil after claiming deduction under Chapter VIA (80P) at Rs. 25,54,183/-. During the assessment proceedings, the A.O passed an order u/s. 144 r.w.s 147 of the Act, denying the deduction u/s. 80P of the Act. On appeal, the Ld. CIT(A) dismissed the appeal ex-parte as the assessee had not responded to the various notices issued. 4. Before us, the Learned Authorized Representative (AR) submitted that the Ld. CIT(A) passed the order ex-parte without adjudicating the issue on merits. Accordingly, the AR requested that one more opportunity be granted to the assessee to present its case. ITA Nos.1013 & 1014/Chny/2025 M/s. TJSPL 3 Soorappalam PACCS Ltd. :- 3 -: 5. We have heard the rival submissions, and perused the materials available on record. On perusal of the order of the Ld. CIT(A), we find that the deduction of Rs.25,54,183/- under Chapter VIA(80P) was confirmed solely due to non-compliance by the assessee, without adjudicating the issue on merits. In the interest of justice, we restore the matter to the file of the Ld. CIT(A) for denovo adjudication. Accordingly, we set aside the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the Ld. CIT(A) to decide the appeal on merits. The Ld. CIT(A) shall pass a reasoned order after providing due opportunity of hearing to the assessee, in accordance with law. We also direct the assessee to co-operate with the proceedings and appear before the Ld. CIT(A) on the date of hearing without fail. ITA No.1014/Chny/2025 (Penalty Appeal): 6. There is a delay of 148 days in filing the appeal by the assessee. The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. We have considered the petition/affidavit of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned. ITA Nos.1013 & 1014/Chny/2025 M/s. TJSPL 3 Soorappalam PACCS Ltd. :- 4 -: 7. This appeal relates to the penalty levied u/s. 270A of the Act, which was dismissed ex-parte by the Ld. CIT(A) due to non- compliance by the assessee. Since the quantum appeal has already been restored to the file of the Ld. CIT(A), this penalty appeal is also restored to the file of the Ld. CIT(A) for fresh adjudication. The Ld. CIT(A) shall pass a reasoned order after providing due opportunity of hearing to the assessee. We also direct the assessee to co-operate with the proceedings and appear before the Ld. CIT(A) on the date of hearing without fail. 8. In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced on 26th day of June, 2025 at Chennai. Sd/- Sd/- (एबी टी. वक ) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 26th June, 2025. EDN/- ITA Nos.1013 & 1014/Chny/2025 M/s. TJSPL 3 Soorappalam PACCS Ltd. :- 5 -: आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. थ\b/Respondent 3. आयकर आयु\u0010/CIT, Madurai 4. िवभागीय ितिनिध/DR 5. गाड\u0019 फाईल/GF "