MADURAI CENTRAL MARKET PERISHABLE COMMODITIES MERCHA,MADURAI V. .ITO, NCW-2(4), MADURAI

ITA 2708/CHNY/2024

AI Insights

The case involves the Madurai Central Market Perishable Commodities Merchants, an Association of Persons (AOP), which appealed against the order of the Learned Commissioner of Income Tax (Appeals) who had dismissed their earlier appeal due to delay in filing. The original assessment by the Assessing Officer under section 144 of the Income-tax Act, 1961, disallowed certain capital expenditures and interest charges. The assessee argued that the delay was caused by internal disagreements and health issues among its members due to COVID-19. The Tribunal considered the Supreme Court's extension of limitation period due to the pandemic and found merit in the assessee's reasons for the delay.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107251 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Other Referred Cases: Suo Motu Writ Petition (C) No.3 of 2020
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANITHA
• Assessee Lawyers: D.ANAND
• Keywords: TDS
• Section: 144

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी जॉज\u001c जॉज\u001c क े, उपा \u001e\u001f एवं \u0019ी जगदीश, लेखा सद' क े सम\u001f BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2708/Chny/2024 िनधा \u001cरण वष\u001c /Assessment Year: 2017-18 Madurai Central Market Perishable Commodities Mercha, 6/1, Co ordinate Commercial Vegetable Complex, Vilangudi, Paravai, Madurai – 625 401. Vs. The Income Tax Officer, Non Corporate Ward-2(4), Chennai. [PAN: AABTM 7923P] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीला थF की ओर से/ Appellant by : Shri D. Anand, Advocate HIथF की ओर से /Respondent by : Ms. Anitha, Addl. CIT सुनवा ई की ता रीख/Date of Hearing : 17.12.2024 घोषणा की ता रीख /Date of Pronouncement : 20.12.2024 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A)-1, Chandigarh [hereinafter “CIT(A)”] dated 30.07.2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 144 of the Income-tax Act, 1961 (hereinafter “the Act”) dated 31.12.2019. ITA No.2708/Chny/2024 :- 2 -: 2. There is a delay of 24 days in filing the appeal by the assessee. The assessee has filed condonation petition stating the reasons for delay in filing the appeal. We have considered the petition 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 condoned accordingly. 3. The assessee is an AOP involved in the activities of facilitating marketing of vegetables in wholesale in central place in the outskirts of Madurai near Paravai and derived income from toll collection for entry of trucks and other vehicles in the vegetable market and membership fee from the members. The A.O in the assessment order passed u/s. 144 of the Act has made the addition by disallowing capital expenditure of Rs. 77,67,173/- and interest on TDS and penal interest of Rs. 1,58,262/-. The assessment order was passed by A.O on 31.12.2019. Aggrieved, the assessee preferred an appeal before Ld. CIT(A) on 28.03.2022. On appeal, the Ld. CIT(A) did not condone the delay and dismissed the appeal. 4. The Ld. Authorized Representative (A.R) of the assessee has submitted that the assessment order was passed on 31.12.2019 and the due for filing appeal was 31.01.2020 and the assessee filed appeal ITA No.2708/Chny/2024 :- 3 -: on 28.03.2022. The Ld. AR has submitted that appeal could not be filed in time as initially there was no consensus among the members and some of the members of board were admitted in the hospital due to Covid-19. The Ld. AR further has submitted the Hon’ble Supreme Court in Suo Motu Writ Petition (C) No.3 of 2020 dated 10.01.2022 for extension of limitation has extended from 15.03.2020 till 28.02.2022. 5. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities. 6. We have heard the rival submissions, and perused the materials available on record. The Ld. CIT(A) has not admitted the appeal as the appeal was not filed within due date. The Ld. AR has submitted delay was due to Covid-19 and the some of the Members was admitted in the hospital during Covid-19. In any case, the Hon’ble Supreme Court, supra, has extended the time limit for filing appeal from from 15.03.2020 till 28.02.2022. We are of the opinion that the assessee has genuine reason for not filing the appeal within the time therefore, Ld. CIT(A) was not justified not to admit the appeal. We therefore, direct the Ld. CIT(A) to admit the appeal and adjudicate on merits in accordance with law, after giving reasonable opportunity to the assessee. We also direct the assessee to appear before the Ld. ITA No.2708/Chny/2024 :- 4 -: CIT(A) on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 20th December, 2024. Sd/- Sd/- (जॉज\u001c जॉज\u001c क े) (George George K) उपा \u001e\u001f / Vice President (जगदीश) (Jagadish) ले ले ले लेखा खा खा खा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 20th December, 2024. EDN/- आदेश क\u0019 \bितिल\u001cप अ\u001dे\u001cषत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b\tथ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "