Chelairu Halu Utpadakara Sahakari Sangha Niyamitha Vs ITO (ITAT, Bangalore Bench)
Date of Order Is Not Date of Service: ITAT Revives Rural Milk Society’s ₹87.28 Lakh Cash-Deposit Case
Summary: In Chelairu Halu Utpadakara Sahakari Sangha Niyamitha v. ITO, ITA No. 758/Bang/2026, decided on 28 August 2026, the Bangalore Bench of the Income Tax Appellate Tribunal examined whether the CIT(A) was justified in dismissing the assessee’s appeal as delayed by 57 days by treating the date of the assessment order as its date of service. Considering the procedural irregularities & the need to verify substantial cash deposits, the Tribunal restored the entire matter to the AO for fresh examination.
Relevant Facts
The assessee was a rural co-operative milk society registered under the Karnataka Co-operative Societies Act. It did not originally file its return for AY 2018-19. The Revenue received information that the assessee had deposited ₹61,82,000 in one bank account & ₹25,46,000 in another account, aggregating to ₹87,28,000. It had also earned interest income of ₹3,539.
Based on this information, reassessment proceedings were initiated after following the prescribed procedure. In response to the notice u/s 148 dated 21 April 2022, the assessee filed its return on 30 June 2022, declaring gross income of ₹7,50,637. It claimed the entire amount as deduction under Chapter VI-A, principally u/s 80P, resulting in nil taxable income.
