DD 203 Aranmanaipatty Primary Agricultural Co-operative Credit Society Vs Chief Commissioner of Income Tax (Madras High Court)
The Madras High Court allowed the writ appeal filed against the order dated 23.01.2025 passed in WP(MD) No.1810 of 2025 concerning rejection of a delay condonation application for filing income tax returns for the assessment year 2021-22.
The appellant, a Co-operative Society registered under the provisions of the Tamil Nadu Co-operative Societies Act, 1983, had failed to file its annual income tax returns within the time prescribed by the Income Tax Department. Subsequently, the Society filed an application seeking condonation of the delay. The authorities rejected the application, and since no appeal was available against such rejection, the appellant approached the Court. The learned Single Judge had dismissed the petition on the ground that the appellant had failed to produce documents substantiating the request for condonation of delay.
Before the Division Bench, the respondents argued that the Society had not furnished any documents or sufficient reasons to justify the prolonged delay in filing the returns and, therefore, the rejection of the condonation application was justified.
The Court noted that the appellant was a Co-operative Society whose members consisted of farmers investing their hard-earned money in the Society. The Society functioned using funds contributed by its own members without any direct contribution from the Government. The Court observed that if the Society’s case for acceptance of delayed returns was not considered, the interests of these small farmers, who were members and investors, would be adversely affected.
