AA281 Urachikottai Primary Agricultural Cooperative Credit Society Ltd. Vs DCIT (ITAT Chennai)
The assessee, a primary agricultural co-operative credit society, filed an appeal before the Income Tax Appellate Tribunal against the order of the Commissioner of Income Tax (Appeals), NFAC, Delhi, dated 06.12.2024 for Assessment Year 2012-13. The assessment had been completed under Sections 144 read with 147 of the Income-tax Act, 1961, after the Assessing Officer reopened the assessment on the ground that the assessee had made cash deposits of ₹24,24,457 but had not filed its return of income. In the ex parte assessment order passed under Section 144, the Assessing Officer made an addition of ₹24,24,457 under Section 69A of the Act.
The assessee challenged the addition before the Commissioner of Income Tax (Appeals). However, the appeal was not admitted on the ground that it had been filed belatedly without a condonation petition.
Before the Tribunal, the assessee submitted that it had initially filed a writ petition before the Hon’ble Madras High Court on 26.11.2019 challenging the assessment order. The writ petition was subsequently withdrawn on 03.02.2020 to enable the assessee to avail the statutory appellate remedy. The assessee further submitted that it had filed a petition for condonation of delay along with a copy of the writ petition before the Commissioner of Income Tax (Appeals), but the same was not considered and the appeal was rejected in limine.
The Departmental Representative relied upon the orders of the lower authorities.
After considering the rival submissions and examining the record, the Tribunal observed that the Commissioner of Income Tax (Appeals) had rejected the appeal solely on the ground of delay without considering the reasons furnished by the assessee. The Tribunal noted the explanation that the delay had occurred due to the pendency of the writ petition before the Hon’ble High Court, which was later withdrawn for pursuing the statutory appellate remedy. The Tribunal held that the assessee had shown sufficient cause for the delay and that the appeal ought to have been admitted.
Accordingly, the Tribunal remitted the matter to the file of the Commissioner of Income Tax (Appeals) with a direction to admit the appeal and decide it afresh in accordance with law after providing the assessee a proper opportunity of being heard to substantiate its case. The Tribunal also directed the assessee to appear before the Commissioner of Income Tax (Appeals) on the date of hearing and furnish all relevant details for fresh consideration. The appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
Aforesaid appeal filed by the assessee for Assessment Year (AY) 2012-13 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 06.12.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 144 r.w.s 147 of the Income-tax Act,1961 (hereinafter “the Act”) on 26.11.2019.
2. The assessee is a primary agricultural co-operative credit society and has not filed its return of income. The A.O reopened the assessment as the assessee had made cash deposits amounting to Rs. 24,24,457/-, but has not filed return of income. The A.O in the ex-pate order passed u/s 144 made addition u/s. 69A of the Act of Rs.24,24,457/-. Aggrieved by the said addition, the assessee preferred an appeal before the Ld. CIT(A). However, the Ld. CIT(A) did not admit the appeal on the ground that appeal was filed belatedly, without condonation petition.
3. The Ld. Authorized Representative (A.R) of the assessee submitted that the assessee had filed a writ petition before the Hon’ble Madras High Court on 26.11.2019 against the assessment order, which was subsequently withdrawn on 03.02.2020 in order to avail the statutory appellate remedy. The Ld. A.R further submitted that a petition for condonation of delay along with a copy of the writ petition was filed before the Ld. CIT(A). However, the Ld. CIT(A) did not consider the same and rejected the appeal in limine.
4. The Ld. Departmental Representative (D.R) relied on the orders of the lower authorities.
5. We have heard the rival submissions and perused the materials available on record. Upon perusal of the order of the Ld. CIT(A), we find that the appeal was rejected solely on the ground of delay in filing, without considering the reasons furnished by the assessee. Before us, the Ld. A.R has explained that the delay was due to the pendency of a writ petition before the Hon’ble High Court, which was later withdrawn to pursue the statutory appellate remedy. We are of the opinion that the assessee has shown sufficient cause for the delay in filing the appeal, and therefore, the appeal ought to have been admitted. Accordingly, we remit the matter back to the file of the Ld. CIT(A) with a direction to admit the appeal. The Ld. CIT(A) shall decide the matter afresh in accordance with law, after providing the assessee with a proper opportunity of being heard to substantiate its case. The assessee is also directed to appear before the Ld. CIT(A) on the date of hearing without fail and furnish all relevant details for fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.
6. In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 31st day of July, 2025 at Chennai
