KK 168 Naripalli Primary Agri. Cooperative Society Limited Vs ITO (ITAT Chennai)
The appeal filed by KK 168 Naripalli Primary Agricultural Cooperative Society was directed against the order dated 04.04.2025 passed by the Addl./JCIT(A)-1, Bengaluru, for the Assessment Year (AY) 2022–23. The appeal was delayed by two days, and the assessee submitted an affidavit explaining the reasons for the delay. After hearing both parties and examining the affidavit, the Tribunal found the reasons to be bona fide and condoned the delay, admitting the appeal for adjudication.
The sole issue before the Tribunal was whether the CIT(A) was justified in confirming the disallowance of exemption claimed under Section 80P of the Income Tax Act, 1961. The assessee, represented by its counsel, stated that it is a Primary Agricultural Cooperative Society registered under the Tamil Nadu Cooperative Societies Act, 1983, and its accounts are mandatorily audited by the Tamil Nadu Cooperative Department. The audit for AY 2021–22 was completed belatedly because the Cooperative Department did not conduct the audit in time. Consequently, the assessee could not file its income tax return by the due date of 07.11.2022.
The assessee filed a condonation petition under Section 119(2)(b) of the Act before the Chief Commissioner of Income Tax (CCIT), Coimbatore, seeking condonation of delay in filing the return, which remained pending. Relying on the Tribunal’s decision in AA520 Veerappampalayam PACS v. ITO (ITA No. 592/Chny/2025, dated 30.04.2025), the assessee requested that the matter be remanded to the CIT(A) for reconsideration once the CCIT’s decision on the condonation petition was available.
