PRIMARY AGRICULTURAL CO OPERATIVE SOCIETY LIMITED CHENNARAOPET,WARANGAL V. ITO, WARD-1, WARANGAL

ITA 3/HYD/2025

AI Insights

The case involves the Primary Agricultural Cooperative Society Limited, which appealed against the order of the Commissioner of Income-Tax (Appeals), National Faceless Appeal Center, Delhi. The appeal was initially dismissed due to a significant delay (388 days) in filing, without a condonation application. The Tribunal noted the assessee's engagement in a government loan waiver scheme and paddy procurement operations as reasons for the delay. It was found that the CIT(A) had provided an opportunity to rectify the delay but the assessee failed to comply. The Tribunal, considering the circumstances, allowed the appeal for statistical purposes and directed the CIT(A) to reconsider the case if a condonation application was filed.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712440 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Condonation of delay
• Section: 143(3)

Judgement Text

"आयकर अपीलीय न्यायाधिकरण में, हैदराबाद ‘ए’ बेंच, हैदराबाद IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ A ‘ Bench, Hyderabad श्री मंजूनाथ जी, माननीय लेखा सदस्य एवं श्री रवीश सूद, माननीय न्याययक सदस्य SHRI G. MANJUNATHA, HON’BLE ACCOUNTANT MEMBER AND SHRI RAVISH SOOD, HON’BLE JUDICIAL MEMBER आयकरअपीलसं./I.T.A.No.3/Hyd/2025 (निर्धारण वर्ा/ Assessment Year:2020-21) Primary Agricultural Cooperative Society Limited, Chennaraopet, Warangal. PAN : AABAP9692H Vs. The Income Tax Officer, Ward – 1, Warangal. (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) करदाता का प्रतततितित्व/ Assessee Represented by : Ms. S. Sandhya, Advocate. राजस्व का प्रतततितित्व/ Department Represented by : Shri Gurpreet Singh, Sr.DR सुिवाई समाप्त होिे की ततति/ Date of Conclusion of Hearing : 17.07.2025 घोर्णध की तधरीख/ Date of Pronouncement : 30.07.2025 O R D E R प्रनत रवीश सूद, जे.एम./PER RAVISH SOOD, J.M. The present appeal filed by the assessee society is directed against the order passed by the Commissioner of Income-Tax (Appeals), National Faceless Appeal Center (NFAC), Delhi, dated Printed from counselvise.com 2 ITA No.3/Hyd/2025 Primary Agricultural Cooperative Society Limited 18.09.2024, which in turn arises from the order passed by the Assessing Officer under Section 143(3) of the Income Tax Act, 1961 for short “the Act”), dated 24.09.2022 for A.Y. 2020-21. The assessee society has assailed the impugned order on the following grounds of appeal before us: “1. The order of the learned Commissioner of Income-Tax (Appeals) is erroneous both on facts and in law. 2. The learned Commissioner of Income-Tax (Appeals) erred condoning the delay and in dismissing the appeal in limine in not 3. The learned Commissioner of Income-Tax (Appeals) ought to have decided the appeal on merits by holding that the net income alone be treated as income and not the deposits made into the bank account. 4. The Commissioner of Income-Tax (Appeals) ought to have considered the fact that the entire income is exempt u/s 80P of the I.T. Act or is exempt on principles of mutuality. 5. Any other ground that may be urged at the time of hearing.” 2. Succinctly stated, the assessee society had e-filed its return of income for A.Y. 2020-21 on 13.02.2021, declaring an income of Rs.Nil, after claiming deduction under Section 80P of the Act of Rs.55,94,190/-. Thereafter, the case of the assessee society was selected for scrutiny assessment under Section 143(2) of the Act. The A.O. framed the assessment, vide his order under Section 143(3) r.w.s. 144B of the Act, dated 24.09.2022, wherein he, after disallowing the assessee society's claim for deduction of interest Printed from counselvise.com 3 ITA No.3/Hyd/2025 Primary Agricultural Cooperative Society Limited received from advances, determined its income at Rs. 1,24,40,090/-. 3. Aggrieved, the assessee society carried the matter in appeal before the CIT(A), who observed that though the appeal filed by the assessee society involved a delay of 388 days, the assessee society had not submitted any application seeking condonation of the same while filing the appeal. The CIT(A) observed that the assessee society had not mentioned any reason for the delay in filing of the appeal in the Memorandum of Appeal, i.e. Form No. 35. Rather, it was observed by him that the assessee society had stated that the delay condonation petition that will be filed along with affidavit with the written submissions, which may be considered. 4. The CIT(A), in all fairness, issued a notice under Section 250 of the Act to the assessee society wherein, pointing out the aforesaid default, it was called upon to upload the petition for condonation of delay involved in the appeal filed before him on or before 17.09.2024. For the sake of clarity, the relevant portion of the notice issued by the CIT(A) is culled out as under: “1. While going through your Form No. 35, it is seen that there is a delay of more than 1 year in filing of the present appeal. You have Printed from counselvise.com 4 ITA No.3/Hyd/2025 Primary Agricultural Cooperative Society Limited mentioned in the Column No. 15 of the Form No. 35 that the delay condonation petition along with affidavit will be filed along with written submission. However, no such application for condoning the above delay has been uploaded till date. 2. Hence, you are given last opportunity to rectify the above defect in your appeal with relevant supporting documents by due date of compliance i.e. on or before on 17.09.2024, failing which your appeal may be rejected as per provisions of Section 249 of the Act.” 5. As the assessee society, despite having been afforded sufficient opportunity, had failed to come forth with any petition seeking condonation of the delay of 388 days involved in filing of the appeal before the CIT(A), therefore the latter, after drawing support from a host of judicial pronouncements, dismissed the appeal on the ground that the same was barred by limitation under Section 249(3) of the Act, read with Section 5 of the Limitation Act. 6. The assessee society, being aggrieved with the order of the CIT(A), has carried the matter in appeal before us. 7. Smt. S. Sandhya, Advocate, the learned Authorized Representative (for short “Ld.AR”) for the assessee society, at the threshold of hearing of the appeal, submitted that the same involves a delay of 32 days. Elaborating on the reasons leading to the delay in filing of the appeal before the Tribunal, the Ld. AR submitted that the same had crept in for the reason that, as Printed from counselvise.com 5 ITA No.3/Hyd/2025 Primary Agricultural Cooperative Society Limited during the relevant period, i.e., 14.08.2024 to 25.11.2024, the Government of Telangana had implemented a loan waiver scheme for the farmers, which was to be attended by the assessee society on the highest priority, as the concerned agencies at the District administration of the State Government of Telangana were fully involved in the said time-bound program, therefore, the appeal against the impugned order could not be filed during the said period. Also, the Ld. AR has submitted that thereafter, as the assessee society had remained engaged in paddy procurement operations in various villages of the districts, therefore, the said reason also led to the delay in filing of the present appeal, which could only be filed on 04.05.2025 i.e. involving a delay of 32 days. The Ld. AR, to buttress her aforesaid claim, has drawn support from the application seeking condonation of the delay, along with a supporting affidavit of Sri Ravi Chitte, Chief Executive Officer (CEO) of the assessee society. 8. Per contra, Shri Gurpreet Singh, the learned Senior Departmental Representative (for short “Ld. DR”) objected to the seeking of condonation of the delay involved in the filing of the present appeal by the assessee society. Printed from counselvise.com 6 ITA No.3/Hyd/2025 Primary Agricultural Cooperative Society Limited 9. We have thoughtfully considered the contentions advanced by the learned Authorized Representatives of both parties regarding the issue of delay involved in the filing of the present appeal. 10. We have given our thoughtful consideration and find substance in the Ld. AR’s claim that as the assessee society, during the relevant period, had remained engrossed in, viz. (i). the loan waiver scheme that was implemented by the State Government of Telangana, a time-bound program implemented over the period 14.08.2024 to 25.11.2024; and (ii). paddy procurement operations in various villages in the month of December 2024, thus, the said reasons had resulted to a delay of 32 days in filing of the present appeal. As the delay involved in filing of the present appeal, in our view, has occasioned because of bona fide reasons and not on account of lackadaisical conduct of the assessee society, therefore, we have no hesitation in condoning the same. 11. Apropos the merits of the case, we find that the CIT(A) had dismissed the appeal for the solitary reason that though the same involved a delay of 388 days, but the assessee society had not submitted any application seeking condonation of the same. Printed from counselvise.com 7 ITA No.3/Hyd/2025 Primary Agricultural Cooperative Society Limited 12. Ostensibly, a perusal of the CIT(A)’s order reveals that the assessee society, in its Memorandum of Appeal, i.e., Form No. 35, had submitted that the petition seeking condonation of the delay along with a supporting affidavit will be filed with the written submissions, which may be considered. Although, the CIT(A), observing that the assessee society had not filed any petition for condonation of delay, had issued a defect memo, wherein the assessee society was called upon to upload its application for condonation of delay on or before 17.09.2024, failing which, the appeal would be rejected as per the provisions of Section 249 of the Act, but, the needful was not done by the assessee. We find that though the CIT(A) had acted, in all fairness, and afforded an opportunity to the assessee society to file an application for condonation of delay on or before 17.09.2024, but thereafter, he had, on the failure of the assessee society to do the needful, disposed of the appeal on the very next day, i.e., on 18.09.2024. 13. We are of the view that it was for the assessee society to have filed an application seeking condonation of the delay involved in the appeal filed before the CIT(A). Rather, we find that the CIT(A), taking cognizance of the fact that the assessee society had failed Printed from counselvise.com 8 ITA No.3/Hyd/2025 Primary Agricultural Cooperative Society Limited to file an application for condonation and had stated in the Memorandum of Appeal, i.e., Form No. 35, that the same would be filed along with written submissions, called upon it to file/ upload the same on or before 17.09.2024, but as observe by us hereinabove the needful was not done by the assessee society. 14. The Ld. AR submitted that the failure on the part of the assessee society to furnish the application seeking condonation of the delay before the CIT(A) was due to multiple reasons, viz., lack of technical expertise, resource constraints, remote location, and heavy reliance on the appointed Chartered Accountant, who had acted in a negligent manner, as he at the relevant point of time was engrossed in carrying out certain time bound statutory compliances. 15. Elaborating further on her contention, the Ld. AR has submitted that the assessee society is a rural government body, which is managed by only two to three persons, who are primarily engaged in government agricultural functions. It was stated that the office staff of the assessee society had no formal knowledge or training on Income-tax laws or procedures and was not equipped to handle the latest model fiscal tax norms. The Ld. AR has Printed from counselvise.com 9 ITA No.3/Hyd/2025 Primary Agricultural Cooperative Society Limited submitted that due to the new system of computer digitalization, all notices, including the assessment orders, were uploaded on the Income Tax E-filing Portal, which the assessee society, due to its locational disadvantages, could not access or understand. Apart from that, it was stated by her that the assessee society had appointed a counsel, viz., Sri Garimella Venkateswarlu, C.A, who in turn had entrusted his work to Mr. T. Mahendra Reddy, C.A. The Ld. AR, submitted that as the concerned Chartered Accountant at the relevant point of time had remained preoccupied in filing of the I.T. returns, he had failed to comply with the notice dated 09.09.2024 that was received from the office of the CIT(A), wherein the assessee society was directed to submit an application seeking condonation of the delay in filing of the appeal before him. The Ld. AR has submitted that both the delay in filing of the appeal before the CIT(A) and also the non- compliance with his notice under Section 250 of the Act, dated 09.09.2024 (supra) had occurred due to bona fide reasons, therefore, in the totality of the facts, the CIT(A) be directed to condone delay and dispose of the appeal on merits. Printed from counselvise.com 10 ITA No.3/Hyd/2025 Primary Agricultural Cooperative Society Limited 16. Rebutting the aforesaid contentions of the assessee society's counsel, the Ld. DR submitted that, as the assessee society had, during the proceedings before the CIT(A), adopted a lackadaisical and casual approach, and despite having been put to notice about the absence of a condonation application, had refrained from undoing the lapse, therefore, no infirmity emanates from his order, wherein the appeal filed by the assessee society, in the absence of any condonation application, had been dismissed by him on the ground of limitation itself. 17. We have thoughtfully considered the contentions advanced by the learned Authorized Representatives of both the parties on the aforesaid two-fold issues, viz., (i) the failure on the part of the assessee society to comply with the notice issued by the CIT(A) under Section 250 of the Act, dated 09.09.2024, directing it to file/upload a condonation application; and (ii). the reasons leading to the delay of 388 days in filing the appeal before the CIT(A). 18. At the threshold, we may herein observe that though no obligation was cast upon the CIT(A) to call upon the assessee society to file or upload a condonation application, but he had, in Printed from counselvise.com 11 ITA No.3/Hyd/2025 Primary Agricultural Cooperative Society Limited all fairness, and in the interest of justice, directed the assessee society to do the needful. However, we find that the assessee society had failed to comply with the aforesaid direction of the CIT(A). At first blush, we were of a firm conviction that the conduct of the assessee society, which despite having been afforded an opportunity to place on record the condonation application which it was required to have voluntarily filed, failed to do so, therefore, its appeal had rightly been dismissed by the CIT(A) on the ground of limitation itself, but in the totality of the facts that have been brought to our notice, we are constrained to take a different view. We, say so, for the reason that, as per the facts deposed by the assessee society in its “affidavit” dated 24.06.2025, the failure on its part to comply with the notice issued by the CIT(A) under Section 250 of the Act, dated 09.09.2024 by the CIT(A) office is attributable to the negligence on the part of its C.A, who, at the relevant point of time, had remained pre-occupied in meeting out time-bound obligations. Apart from that, we find that though the CIT(A), in all fairness, has allowed the assessee society to file before him a condonation application on or before 17.09.2024, but thereafter, in the absence of the needful being done by the assessee society, he had, Printed from counselvise.com 12 ITA No.3/Hyd/2025 Primary Agricultural Cooperative Society Limited on the very next day, i.e., on 18.09.2024, dismissed the appeal, as barred by limitation. 19. Ostensibly, the reasons leading to the delay of 388 days involved in the filing of the appeal before the CIT(A) carry substance, as the same had apparently crept in because of the negligence on the part of its counsel. 20. Be that as it may, we are of the firm conviction that in the totality of the facts involved in the present case, the matter, in all fairness, requires to be restored to the file of the CIT(A), who is directed to afford the assessee society an opportunity to file/ upload a petition for condonation of the delay of 388 days in filing of the appeal before him. The CIT(A) is directed to judiciously consider the application seeking condonation of the delay that shall be filed by the assessee society before him, if any. 21. Before parting, we may herein observe that, though we have restored the matter to the file of the CIT(A), but we have refrained from expressing any view on the merits of the case, and also the explanation of the assessee society regarding the delay of 388 days involved in filing of the appeal before the CIT(A), which the latter Printed from counselvise.com 13 ITA No.3/Hyd/2025 Primary Agricultural Cooperative Society Limited shall remain at liberty to deal with as per the discretion vested with him under Section 249(3) of the Act. 22. Resultantly, the appeal filed by the assessee society is allowed for statistical purposes in terms of our aforesaid observations. Order pronounced in the Open Court on 30th July, 2025. Sd/- Sd/- (मंजूनाथ जी) (MANJUNATHA G.) लेखा सदस्य/ACCOUNTANT MEMBER Sd/- (श्री रवीश सूद) (RAVISH SOOD) न्यायिक सदस्य/JUDICIAL MEMBER Sd/- Hyderabad, dated 30.07.2025. *TYNM/sps आदेशकी प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:- 1. निर्धाररती/The Assessee : Primary Agricultural Cooperative Society Limited, 3- 5, Chennaraopet, Warangal – 506002, Hyderabad. 2. रधजस्व/ The Revenue : The Income Tax Officer, Ward – 1, Warangal. 3. The Principal Commissioner of Income Tax, Hyderabad. 4. नवभधगीयप्रनतनिनर्, आयकर अपीलीय अनर्करण, हैदरधबधद / DR, ITAT, Hyderabad 5. गधर्ाफ़धईल / Guard file आदेशधिुसधर / BY ORDER Sr. Private Secretary ITAT Printed from counselvise.com "