TRICHY DIST MEDICAL DEPT ECS LIMITED YT66,TRICHY V. THE INCOME TAX OFFICER, WARD2(1), TIRUCHIRAPPALLI

ITA 1866/CHNY/2025

AI Insights

The case involves Trichy District Medical Dept. ECS Ltd., the appellant, contesting an order from the Commissioner of Income Tax (Appeals), which had disallowed a deduction claimed under section 80P(2)(a)(i) of the Income Tax Act, 1961. The primary issue was the non-condonation of a 155-day delay in filing the appeal by the CIT(A). The Tribunal found that the reasons for the delay provided by the assessee were sufficient and directed the CIT(A) to reconsider the appeal on its merits after condoning the delay.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772747 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VEERAMANY. K. IRS
• Assessee Lawyers: M. KARUNAKARAN
• Keywords: Set aside; Principle of natural justice

Judgement Text

"आयकर अपीलीय अिधकरण, ’डी’ \u0001यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0001ी मनु क ुमार िग र, ाियक सद\u0011 एवं एवं एवं एवं \u0001ी अिमताभ शु\u0016ा, लेखा सद क े सम\u0019 BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1866/Chny/2025 िनधा\u000eरण वष\u000e/Assessment Year: 2022-23 Trichy District Medical Dept. ECS Ltd. YT66, 1 Puthur SO, Tiruchirappalli-620 017. v. The ITO, Ward-2(1), Tiruchirappalli. [PAN: AAHAT 1541 K] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Mr.M. Karunakaran, Advocate \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Mr.Veeramany. K. IRS सुनवाईक\u001aतारीख/Date of Hearing : 26.08.2025 घोषणाक\u001aतारीख /Date of Pronouncement : 26.08.2025 आदेश / O R D E R PER MANU KUMAR GIRI, JM: The captioned appeal filed by the assessee is directed against order of the Ld. Commissioner of Income Tax (Appeal)/NFAC, Delhi [‘CIT(A)’ in short] dated 16.05.2025 for Assessment Year 2022-23. 2. Brief facts of the case are as under: The AO passed assessment u/s.144 r.w.s. 144B of the Income tax Act, 1961 disallowing deduction claimed u/s. 80P(2)(a)(i) of the Act as assessee has not filed the evidence to prove that its business activity i.e; Printed from counselvise.com ITA No.1866/Chny/2025 (AY 2022-23) Trichy District Medical Dept. ECS Ltd. YT66 :: 2 :: facilitating financial accommodation to its members only. On appeal to ld. CIT(A), the delay of 155 days in filing appeal was not condoned. 3. Before us, the ld. Counsel for assessee submitted that the ld. CIT(A) has not properly considered the reasons given. The ld.DR relied upon the order of the ld.CIT(A) and pleaded for the dismissal of the appeal. 4. Though we some extent concur with the submissions of Ld.DR, however, keeping in mind the reasons given, we are of the view that the delay in filing appeal before the ld.CIT(A) is sufficient cause. Hence, we direct the ld.CIT(A) to condone the delay in filing appeal and hear the appeal on merits. Needless to say, that the ld.CIT(A) will follow the principle of natural justice and grant opportunity of hearing to the assessee. Accordingly, the impugned order is set aside and the appeal is restored back to the file of the Ld. CIT(A) for hearing on merits subject to cost of Rs.5,000/- (Rupees Five Thousand) which shall be deposited by the assessee within ‘30’ days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same will be furnished by the Assessee before the Ld.CIT(A) whose shall proceed for hearing the appeal on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence and documents, if any, forthwith without any fail, failing which Ld.CIT(A) shall be at liberty to proceed with the appeal proceedings on merits as per law. Printed from counselvise.com ITA No.1866/Chny/2025 (AY 2022-23) Trichy District Medical Dept. ECS Ltd. YT66 :: 3 :: 5. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in open Court on the 26th day of August, 2025, in Chennai. Sd/- (अिमताभ शु\u0016ा) (AMITABH SHUKLA) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (मनु क ुमार िग र) (MANU KUMAR GIRI) \u0005याियक सद\u0003य/JUDICIAL MEMBER चे ई/Chennai, !दनांक/Dated: 26th August, 2025. TLN, Sr.PS 1. अपीलाथ /Appellant 2. \u000e\u000fथ /Respondent 3. आयकरआयु\u0015/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u000eितिनिध/DR 5. गाड फाईल/GF Printed from counselvise.com "