MARUTHUR CO OP STORES LTD K 1967,COIMBATORE V. ITO NON CORPORATE WARD 1(1), COIMBATORE

ITA 2842/CHNY/2024

AI Insights

The case involves Maruthur Co-Op. Stores Ltd, a cooperative society, which did not file a return of income but made substantial cash deposits during the demonetization period. The Income Tax Officer (ITO) issued notices to explain the source of these deposits, which were not complied with, leading to an addition of Rs. 61,89,370 to the assessee's income. The assessee's appeal to the CIT(A) was initially dismissed due to a delay of 131 days in filing the appeal. The Tribunal found that the CIT(A) should have condoned the delay and decided the case on its merits, thus remanding the case back to the CIT(A) with directions to do so.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107181 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2016-2017
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PUSHPA HEMACHAND
• Assessee Lawyers: S. GIRISH KUMAR
• Section: 147; 144

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी मनु क ुमा र िग\u001eर, \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2842/Chny/2024 िनधा 8रण वष8 /Assessment Year: 2016-17 Maruthur Co-Op.Stores Ltd K 1967, 265 Poosari Mariappan Street, Ramanathapuram, Coimbatore – 641 045. Vs. The Income Tax Officer, Non Corporate Ward-1(1), Coimbatore. [PAN: AAZFM 8938Q] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीलाथG की ओर से/ Appellant by : Shri S. Girish Kumar, Advocate IJथG की ओर से /Respondent by : Ms. Pushpa Hemachand, JCIT सुनवाई की तारीख/Date of Hearing : 22.01.2025 घोषणा की तारीख /Date of Pronouncement : 31.01.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2014-15 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 20.08.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 147 r.w.s 144 of the Income- tax Act,1961 (hereinafter “the Act”) on 20.02.2024. ITA No.2842/Chny/2024 :- 2 -: 2. There is a delay of 07 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 only ground of appeal in this appeal of assessee is against dismissing the appeal in limine without condoning the delay of 131 days in filling the appeal by the Ld. CIT(A). 4. The assessee is Co-operative Society and has not filled return of income. The assessee has made cash deposits of Rs.59,71,300/- during demonetization period in its bank account maintained with CDCC Bank . The A.O issued various notices to explain the source of cash deposits, but the notices remained non complied. Therefore, the A.O made addition of Rs. 61,89,370/- which included cash deposits of Rs.59,71,300/-. Aggrieved, the assessee has filed appeal before Ld. CIT(A) with a delay of 131 days. The Ld. CIT(A) did not condone the delay and dismissed the appeal . ITA No.2842/Chny/2024 :- 3 -: 5. The Ld. Authorized Representative (A.R.) of the assessee has submitted that assessment order was passed ex-parte and Ld CIT(A) has dismissed the appeal without deciding the appeal on merit. The Ld AR submitted that that there was sufficient reason for the delay in filing the appeal and therefore prayed that Ld CIT(A) may be directed to admit the appeal and decide the issue on merit, in the interest of justice . 6. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities. 7. We have heard the rival submissions, and perused the materials available on record. There was a delay of 131 days in filing the appeal before the Ld. CIT(A). The assessee has provided the reason for the delay, stating that the delay in filling appeal was due to mishandling by the tax professional. However, the Ld. CIT(A) did not accept the explanation and dismissed the appeal in limine. We have given considerable thought to the matter and are of the opinion that the Ld. CIT(A) should have condoned the delay and decided the case on merits. We therefore remand the matter back to file of Ld. CIT(A) with a direction to condone the delay and adjudicate the appeal on merits subject to payment of costs of Rs.5,000/-. The same shall be paid by ITA No.2842/Chny/2024 :- 4 -: the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the Ld. CIT(A). In the view of the above, the appeal filed the assessee is allowed for statistical purposes only. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 31st January, 2025. Sd/- Sd/- (मनु क ुमार िग\u001eर) (Manu Kumar Giri) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 31st January, 2025. 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, Coimbatore 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "