NO.8729 KEELVANI PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LIMITED,ERODE V. .INCOME TAX OFFICER, WARD 2(1), ERODE, ERODE

ITA 2299/CHNY/2024

AI Insights

The case involves the Keelvani Primary Agricultural Cooperative Credit Society Limited, which appealed against the order of the Additional/JCIT (A), Thane, for the assessment year 2016-17. The primary contention was the dismissal of their appeal by the CIT(A) due to a delay of 1517 days in filing, of which 716 days were during the Covid-19 pandemic, a period for which the Supreme Court had provided exclusion from limitation. The assessee argued that the delay was due to the society's remote location and lack of a qualified accountant, compounded by the pandemic. The Tribunal noted that the CIT(A) had not adjudicated the issue on merits and decided to remand the case for a fresh decision, considering the precedent set by the Madras High Court regarding deductions under section 80P of the Income Tax Act.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107352 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Other Referred Cases: PCIT v. M/s. S-1308 Ammapet Primary Agricultural Cooperative Bank Ltd.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K. ROHAN RAJ
• Assessee Lawyers: A. VIJAYALAKSHMI
• Keywords: Period of limitation; Co-operative Credit Society
• Section: 143(3); 80P

Judgement Text

"आयकर अपीलीय अिधकरण, ’ए’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी जगदीश, लेखा सद˟ क े समƗ । Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Jagadish, Accountant Member आयकर अपील सं./I.T.A. No.2299/Chny/2024 िनधाŊरण वषŊ/Assessment Year: 2016-17 No. 8729 Keelvani Primary Agricultural Cooperative Credit Society Limited, 87/29, Keelvani (P.O.), Athani Via, Anthiyur T.K., Tamil Nadu 638 502. [PAN:AABAN2087J] Vs. The Income Tax Officer, Ward 2(1), Erode. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Ms. A. Vijayalakshmi, C.A. ŮȑथŎ की ओर से/Respondent by : Shri K. Rohan Raj, Addl. CIT सुनवाई की तारीख/ Date of hearing : 03.12.2024 घोषणा की तारीख /Date of Pronouncement : 19.12.2024 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 03.07.2024 passed by the Addl/JCIT (A), Thane for the assessment year 2016-17. 2. At the outset, the ld. AR Ms. A. Vijayalakshmi, CA challenged the action of the ld. CIT(A) in dismissing the appeal by refusing to condone the delay of 1517 days in filing the appeal on which 716 days comes within the ambit of exclusion provided by the Hon’ble Supreme Court in I.T.A. No.2299/Chny/24 2 view of Covid Pandemic-19 for the period from 15.03.2020 to 14.03.2021. She submits that the assessee does not have qualified Accountant to look after the proceedings. Further she submits that the assessee society is located in remote area of Erode district. The Tamil Nadu State Accounting and Taxation Services Co-operative Society were formed to look after the taxation matters of the Co-operative Societies. The Member has taken initiative and identified the pending proceedings of the assessee and due to the above process; there was a delay before the Covid Pandamic-19 period. She further submits that the ld. CIT(A) has not adjudicated the issue raised by the assessee on merits. 3. The ld. DR Shri K. Rohan Raj, Addl. CIT relied on the order of the ld. CIT(A). 4. After hearing both the parties, we note that assessment was completed under section 143(3) of the Income Tax Act, 1961 [“Act” in short] dated 24.12.2018 against which the assessee preferred an appeal before the ld. CIT(A) with a delay of 1517 days out of which 716 days delay comes within the ambit of exclusion provided by the Hon’ble Supreme Court in view of Covid Pandemic-19 for the period from 15.03.2020 to 14.03.2021. The ld. CIT(A) in para 5.2.1 of the impugned order, discussed the issue of exclusion of period of limitation falling I.T.A. No.2299/Chny/24 3 between 15.03.2020 and 28.02.2022 and held the appeal of the assessee does not fall within the period where the Hon’ble Supreme Court granted relaxation. We agree with the said finding of the ld. CIT(A) as the limitation to file assessee’s appeal before the ld. CIT(A) expired on 23.01.2019 and the appeal was filed on 22.05.2023, there is delay of 1517 days . Therefore, in this regard, we find no infirmity in the order of the ld. CIT(A) and the assessee is liable to explain the delay of 1517 days. 5. Before us, the ld. AR submits that the assessee is an agricultural co-operative credit society having members of marginal farmers and situated in remote place at Athani via, Anthiyur of Keelavani P.O. and this fact was not disputed by the ld. DR. The ld. AR vehemently argued that the assessee has fair case in getting allowance of deduction under section 80P of the Act and there was no opportunity for the assessee before the first appellate authority. Further, she drew our attention to para (ix) at page 5 of the assessment order and submits that the Assessing Officer particularly did not grant the allowance of deduction under section 80P of the Act only for the reason that there was no finality in the case of Ammapet PACB Ltd. which is pending before the Hon’ble High Court of Madras. The ld. AR drew our attention to the decision dated 06.12.2018 I.T.A. No.2299/Chny/24 4 and submits that the Hon’ble High Court of Madras in the case of PCIT v. M/s. S-1308 Ammapet Primary Agricultural Cooperative Bank Ltd. in TCA No. 882 and 891 of 2018 confirmed the order of the ITAT in allowing deduction under section 80P of the Act. Though the decision of the Hon’ble High Court of Madras was available as on the date of the impugned order, but, however, the ld. CIT(A) not considered as the appeal was dismissed in limine without going into merits of the case. Therefore, taking into consideration the facts and circumstances of the case, we deem it proper to remand the matter to the file of the ld. CIT(A) for fresh consideration with a direction to condone the delay and decide the issue on merits in terms of the decision of the Hon’ble High Court of Madras in the case of PCIT v. M/s. S-1308 Ammapet Primary Agricultural Cooperative Bank Ltd. and pass order in accordance with law. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 19th December, 2024 at Chennai. Sd/- Sd/- (JAGADISH) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 19.12.2024 Vm/- I.T.A. No.2299/Chny/24 5 आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. "