Sullurpet Farmers Service Co-Operative Society Limited Vs ITO (ITAT Hyderabad)
204-Day Delay Condoned due to Mismanagement Proceedings; Ex-Parte 144 Assessment & NFAC Order Set Aside; Matter Remanded for Full Verification
Tribunal considered the Assessee’s delay-condonation plea explaining that the Co-operative Society had been engulfed in multiple enquiries since 2017 by the State Cooperative Department, including criminal proceedings against the former MD, Supervisor & Cashier for misappropriation of members’ funds. Tribunal accepted this as a sufficient cause, noting that the Society was under administrative turmoil & could not respond to notices before AO or CIT(A). Delay of 204 days was condoned with a cost of ₹10,000 payable to PMNRF.
The assessment had been framed ex-parte u/s 144, making additions of ₹5.16 crore (after telescoping), taxing the income u/s 115BBE @ 60%, & disallowing bad debts & borrowings solely for want of details. CIT(A) also upheld the assessment for non-filing of evidence. Tribunal found that the new management is now reconstructing books & willing to furnish full details.
In the interest of justice, Tribunal set aside the NFAC order & remanded the entire matter to the AO for fresh adjudication, directing that all books, records, bad-debt details, demonetisation-period cash data, & supporting evidence be examined afresh after due opportunity.
