R1636 NAGALAPURAM AGRICULTURAL COOP CREDIT SOCIETY LIMITED,TRICHY vs. INCOME TAX OFFICER, WARD 2(1) TRICHY/, TRICHY

आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee-Primary Agricultural Co- operative Credit Society (PACCS) against the order of the Learned Commissioner of Income Tax (Appeal)/NFAC, (hereinafter referred to as ‘Ld.CIT(A)’), Delhi, dated 18.06.2025 for the Assessment Year (hereinafter referred to as ‘AY’) 2019-20 u/s. 250 of the Income Tax Act,

ITA No. 94/Chny/2026 & SA 55/Chny/2026 (AY 2019-20) R1636 Nagalapuram Agricultural Cooperative Credit Society Limited :: 2 :: 1961 (hereinafter referred to as ‘the Act’). Stay Application filed by the assessee is against the demand raised pursuant to the impugned order.

ITA No. 94/Chny/2026 & SA 55/Chny/2026 (AY 2019-20) R1636 Nagalapuram Agricultural Cooperative Credit Society Limited :: 3 :: 5. Aggrieved by the impugned action of Ld CIT(A), the assessee is before us. Have heard both the parties and after perusal of the records, it is noted that assessee is a Primary Agricultural Co-operative Credit Society (PACCS) predominately engaged in providing credit facilities to its members who are predominantly in agricultural sector. The assessee having not filed return of income for the relevant year, and the AO receiving information that assessee had deposited more than a crore rupees in the Trichirapalli District Central Co Op Bank, reopened the assessment and despite notices, assessee failed to respond and hence, the AO has added the entire cash deposit to the tune of Rs.1.32 crore as unexplained. On appeal, Ld.CIT(A) dismissed the appeal, without condoning the delay of 134 days in filing of the appeal before him. The Ld AR has submitted the reason for delay in filing of appeal before Ld CIT(A), which was mainly attributed to non-receipt of notices from AO and hence assessee wasn’t aware of the existence of assessment order. Hence, the Ld.AR submitted that omission on the part of the assessee wasn’t deliberate. Hence, prayed for one more opportunity before the AO relying on the decision of the Hon’ble Supreme Court in the case of Tin Box Company vs. Commissioner of Income-Tax, reported in [2001] 249 ITR 216.

ITA No. 94/Chny/2026 & SA 55/Chny/2026 (AY 2019-20) R1636 Nagalapuram Agricultural Cooperative Credit Society Limited :: 4 :: appeal within the time because assessee wasn’t aware of the assessment proceedings and only when assessee received a telephonic call from the Income Tax Authorities informing of the demand raised, then only the assessee realized that the assessment order has been passed and immediately filed the appeal, hence there was a delay of 134 days in filing of appeal before the Ld.CIT(A). Be that as it may, we note that the assessee didn’t get proper opportunity before the AO during the assessment stage, hence considering that assessee is a Primary Agricultural Co-operative Credit Society, predominately engaged in providing credit facilities to its members who are predominantly in agricultural sector, we are inclined to give one more opportunity to the assessee by relying on the on the decision of Hon’ble Supreme Court in the case of Tin Box Company (supra). Hence, we set aside the impugned order of the Ld.CIT(A) and restore the assessment back to the file of AO for de nova assessment subject to remitting cost of ₹5,000/- (Rupees five thousand) which shall be deposited by the assessee to 'Tamil Nadu State Legal Services Authority' at Hon'ble High Court of Madras and submit the proof of deposit of cost before the AO within three (3) months from date of this order. And the assessee is directed to file documents called for by AO in order to substantiate nature and source of cash deposit before the AO/verifying unit of the department; and the AO to frame the assessment

ITA No. 94/Chny/2026 & SA 55/Chny/2026 (AY 2019-20) R1636 Nagalapuram Agricultural Cooperative Credit Society Limited :: 5 :: after considering the report of verifying unit, in accordance to law after hearing the assessee.

Order pronounced on the 05th day of August 2026, in Chennai.

Sd/- Sd/- (गगन गोयल) (एबी टी. वक�) (ABY T. VARKEY) (GAGAN GOYAL) �या�यक सद�य/JUDICIAL MEMBER लेखा सद�य/ACCOUNTANT MEMBER चे�नई/Chennai, �दनांक/Dated: 05th August, 2026. YS आदेश क� ��त�ल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF YASHV Digitally signed by YASHVIR IR SINGH Date: 2026.08.12 SINGH 15:44:37 +05'30'