THE DHARAPURAM AGRICULTURAL PRODUCERS COOPERATIVE MARKETING SOCIETY LIMITED,TIRUPUR V. THE INCOME TAX OFFICER, WARD 2(4) TIRUPUR, TIRUPUR

ITA 1671/CHNY/2025

AI Insights

The case involves The Dharapuram Agricultural Producers Cooperative Marketing Society Limited, which appealed against the order of the Addl/JCIT(A)-1, Visakhapatnam, for the assessment year 2020-21. The primary contention was the dismissal of their appeal by the ld. CIT(A) due to a delay in filing, which the assessee attributed to the inability to engage a qualified accountant and the impact of the COVID-19 pandemic. The Tribunal found the reasons for the delay to be bona fide and not intentional, thus allowing the appeal for statistical purposes and directing a re-examination of the case on its merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 774535 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2020-2021
• Appeal Filed On: 09-06-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: N. RAJA KUMAR
• Assessee Lawyers: A. VIJAYALAKSHMI; VIRTUAL
• Keywords: Condonation of delay
• Section: 119(2)(b)

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 एस.आर. रगुनाथॎ, लेखा सद˟ क े समƗ Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri S.R. Raghunatha, Accountant Member आयकर अपील सं./I.T.A. No.1671/Chny/2025 िनधाŊरण वषŊ/Assessment Year: 2020-21 The Dharapuram Agricultural Producers Cooperative Marketing Society Limited, New No. 487, Old No. 280, Chinnakadai Street, Opp. Arasamaram Stop, Dharapuram, Tiruppur 638 702. [PAN:AABAT8601Q] Vs. The Income Tax Officer, Ward 2(4), Tirupur. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Ms. A. Vijayalakshmi, CA (Virtual) ŮȑथŎ की ओर से/Respondent by : Shri N. Rajakumar, Addl. CIT सुनवाई की तारीख/ Date of hearing : 26.08.2025 घोषणा की तारीख /Date of Pronouncement : 02.09.2025 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 13.03.2025 passed by the Addl/JCIT(A)-1, Visakhapatnam for the assessment year 2020-21. 2. We find that this appeal is filed with a delay of 9 days. The assessee filed an affidavit for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, Printed from counselvise.com I.T.A. No.1671/Chny/25 2 we find the reasons stated by the assessee are bonafide, which really prevented in filing the appeal in time. Thus, the delay is condoned and admitted the appeal for adjudication. 3. The assessee raised 4 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is justified in dismissing the appeal of the assessee without condoning the delay in filing the appeal in the facts and circumstances of the case. 4. At the outset, the ld. AR Ms. A. Vijayalakshmi, CA submits that the assessee is an Agricultural Producers Cooperative Marketing Society Registered under Tami Nadu Cooperative Society Act 1983 and the Society is under the obligation to get the books of accounts audited. The statutory Auditor of the Society is the Tamil Nadu Co- operative Audit Department, Tirupur. She submits that the assessee was unable to engage a qualified accountant to manage financial and tax related matters during the relevant period. She further submits that the Secretary of the society is trained solely in co-operative operations and lacks the necessary expertise in accounting and taxation. The Tamil Nadu State Accounting and Taxation Services Co-operative Printed from counselvise.com I.T.A. No.1671/Chny/25 3 Society have been constituted to oversee the taxation matters of co- operative societies, including the assessee-society. Upon its formation, the Society promptly reviewed and identified the pending proceedings related to the assessee’s case. The ld. AR submits that as soon as the Society became aware of the pending proceedings, immediate steps were taken to file the appeal before the first appellate authority without any intention to jeopardize the interests of revenue. The delay in filing the appeal was neither intentional nor wanton, but, was due to the aforementioned reasons, including the complexity of the facts, the time taken to discover the demand, and the unprecedented impact of the COVID-19 pandemic. The ld. AR prayed that the delay in filing the appeal before the ld. CIT(A) may be condoned and suitable direction may be given to adjudicate the issues on merits. 5. The ld. DR Shri N. Rajakumar, Addl. CIT vehemently opposed the submissions of the ld. AR and supported the order passed by the ld. CIT(A). 6. Heard both the parties and perused the material available on record. We note that the CPC Bangalore passed the intimation order under section 143(1) of the Income Tax Act, 1961 [Act” in short] dated Printed from counselvise.com I.T.A. No.1671/Chny/25 4 23.12.2021 during Covid-19 Pandemic period. We note that against the intimation order, the assessee preferred an appeal before the ld. CIT(A) with delay of 912 days of which 37 days come under the exclusion provided during Covid-19 pandemic period. On perusal of the impugned order, we note that in page 2 of the impugned order, the ld. CIT(A) reproduced the reasons for condonation of delay. We find force in the arguments of the ld. AR. We note that there is no competent staff to look after the tax matters, not only in the case of the assessee, but also in many of the society such problem exists and in order to resolve this matter, the Tamil Nadu State Accounting and Taxation Services Co-operative Society have been constituted and upon its formation, the Society promptly reviewing the pending proceedings to comply with all taxation procedures, which took considerable time and thereby the delay is caused in filing appeal before the appellate authorities. In fact, we also note that the assessee has not filed the return of income under section 139(1) of the Act and subsequently filed the ROI under section 139(4) of the Act. As per condonation petition filed by the assessee dated 21.05.2024, the ld. CCIT, Coimbatore condoned the delay in filing the ROI under section 119(2)(b) of the Act vide his order dated 28.03.2025. Considering the factual matrix of the Printed from counselvise.com I.T.A. No.1671/Chny/25 5 case, we direct the ld. CIT(A) to condone the delay and adjudicate the issues on merits by affording reasonable opportunity to the assessee. The assessee is also directed to furnish the details along with documentary evidences to substantiate its claims before the ld. CIT(A). Thus, the grounds raised by the assessee are allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 2nd September, 2025 at Chennai. Sd/- Sd/- (S.R. RAGHUNATHA) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 02.09.2025 Vm/- 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. Printed from counselvise.com "