R 1177 THIRUMALAPADI PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LTD,THIRUMALAIPADI V. INCOME TAX OFFICER, PERAMBALUR

SA 126/CHNY/2025

AI Insights

The case involves the R 1177 Thirumalapadi Primary Agricultural Cooperative Credit Society Ltd, which appealed against the order of the Commissioner of Income Tax (Appeals) at NFAC, Delhi. The appeal was initially dismissed by the CIT(A) due to a perceived delay in filing, which the Tribunal later found to be incorrectly calculated. The society had not filed a regular return of income for the assessment year 2015-16, leading to an income escape assessment. The Assessing Officer (AO) made several additions to the income, including estimated profits and unexplained cash deposits. The Tribunal's decision to remit the case back to the NFAC was based on the need to properly assess the merits of the case without the procedural error of dismissing it on technical grounds.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 825047 (ITAT-CHENNAI)
• Duration Of Justice: 17 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 30-12-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 13-12-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R. ANITHA
• Assessee Lawyers: G.REDDI PRAKASH
• Keywords: Opportunity of being heard; Period of limitation; Time period of passing order
• Section: 147; 148; 144

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI BEFORE HON’BLE SHRI GEORGE GEORGE K, VICE PRESIDENT AND HON’BLE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA No.3791/Chny/2025, Assessment Years: 2015-16 SA-126/Chny/2025, Assessment Years: 2015-16 R 1177 Thirumalapadi Primary Agricultural Cooperative Credit Society Limited, Thirumalapadi PACCS, Ariyalur, Tamil Nadu-621 851. [PAN: AABAR2289N] Income Tax Officer, Ward-1, Perambalur. Appellant) Respondent Assessee by : Mr.G.Reddi Prakash, C.A. Revenue by : Ms.R.Anitha, Addl.CIT Date of Hearing : 19.12.2025 Date of Pronouncement : 30.12.2025 O R D E R PER INTURI RAMA RAO, A.M : This appeal filed by the assessee – R 1177 Thirumalapadi Primary Agricultural Cooperative Credit Society Ltd against the order of the Ld. Commissioner of Income Tax(Appeal), [‘CIT(A)’ in short], NFAC, Delhi, dated 29.10.2025 for AY-2015-16. 2.0 The appellant is a cooperative society incorporated under the provisions of the Tamil Nadu cooperative society Act, 1983. It is classified as a primary agricultural cooperative credit society. No regular return of income for the AY-2015-16 filed by the appellant. The AO formed an Printed from counselvise.com ITA No.3791 & SA-126/Chny/2025 & Page - 2 - of 4 opinion that income got escaped assessment from tax, accordingly, a notice u/s 148 was issued on 07.04.2024. In response to the notice u/s 148, the appellant had filed return of income disclosing nil income after claiming exemption under the provisions of section 80P of Income Tax Act. Against the said return of income, the assessment was completed by NAFC (herein after called Assessing Authority) u/s. 147 r.w.s 144 r.w.s.144B of the Income Tax Act 1961 on 20.02.2024 for the Assessment Year 2015-16 at a total income of Rs.2,97,55,388. While doing so, the AO made addition by estimating a profit on the difference of turnover shown in profit and loss account and the amount of credits in the bank account and estimated the profit on differential amount at 10%, accordingly the addition of Rs.86,15,848/- was made treating the credits in the bank account as business turnover of the appellant. The assessing officer also made addition of interest income of Rs. 1,12,09,540/-. The assessing authority also made addition of cash deposit in the bank account of Rs.99,30,000/- as unexplained money of the appellant for the failure of the appellant to explain the source of cash deposit. 3.0 Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order dismissed the appeal on the grounds of delay by holding that the appellant failed to explain the delay of 65 days in filing appeal before him. Printed from counselvise.com ITA No.3791 & SA-126/Chny/2025 & Page - 3 - of 4 4.0 Being aggrieved, the appellant is in appeal before us in the present appeal. 5.0 The learned AR submits that the NFAC grossly erred in dismissing the appeal by holding that appeal is barred by limitation, in as much as, there was no delay in filing before the CIT(A). On the other hand, the Sr.DR seriously objected for remanding the matter back to the CIT(A) to decide the issues in appeal on merits. 6.0 We heard the rival submissions and perused the material on record. The sole issue that arises for our consideration is whether the CIT(A) was justified in dismissing the appeal in limine on the grounds of delay. On perusal of the impugned order passed by the NFAC, it would be clear that the NFAC had reckoned the date of assessment order for the purpose of computing the period of limitation for filing the appeal. The appellant took specific plea that the assessment order was received by him only on 09.05.2024, and the appeal was filed on 27.05.2024. Thus, according to the appellant, there was no delay in filing the appeal before the CIT(A). It is trite law that the limitation period of 30 days for filing the appeal commences from the date of communication of the assessment order not date of order itself. In any event, when the appellant specifically mentioned that date of service of the assessment order was on 09.05.2024, in the absence of any evidence to the contrary, without giving an opportunity to Printed from counselvise.com ITA No.3791 & SA-126/Chny/2025 & Page - 4 - of 4 cure the defect, the CIT(A) ought not to have dismissed the appeal in limine on the grounds of delay. Therefore, we reverse the order passed by the NFAC and remit the matter back to the file of the NFAC for de novo disposal of appeal in accordance with law after affording an opportunity of being heard to the appellant. 7.0 In the result, the appeal filed by the assessee is partly allowed for statistical purposes. 8.0 Since the appeal was disposed of by this tribunal, the stay petition No.126 / Chny / 2025 for AY – 2015-16 filed by the appellant becomes in fructuous and accordingly it is dismissed. Order pronounced on 30th , December-2025 at Chennai. Sd/- (GEORGE GEORGE K) Vice president Sd/- (INTURI RAMA RAO) Accountant Member Chennai, Dated: 30th , December-2025. KB/- Copy to: 1. Appellant 2. Respondent 3. CIT - Chennai/Coimbatore/Madurai/Salem. 4. DR 5. GF Printed from counselvise.com "