YM 33 KARUPPAMPATTY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY LTD,TRICHY vs. INCOME TAX OFFICER, WARD 2(1) TRICHY/, TRICHY

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ITA 1039/CHNY/2026Status: DisposedITAT Chennai03 August 2026AY 2019-20204 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(A)'s order and restored the matter for fresh adjudication. The assessee was granted one final opportunity to substantiate its claim, with a direction to cooperate fully in the remand proceedings.

What were the facts?

The assessee, a Primary Agricultural Cooperative Credit Society, failed to file its return of income. Based on information of cash deposits, reassessment proceedings were initiated. Notices were not complied with, leading to an ex-parte assessment treating cash deposits as unexplained money.

What were the issues?

Whether the ex-parte assessment and confirmation of additions by the CIT(A) were justified without examining the assessee's explanation, and if a final opportunity should be granted.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 142(1),Section 144,Section 69A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI

Before: SHRI INTURI RAMA RAO & SHRI MANU KUMAR GIRI

Hearing: 03.08.2026

आदेश / O R D E R

PER MANU KUMAR GIRI, JM:

The captioned appeal filed by the Assesseeis directed against the order of the Ld. Commissioner of Income Tax (Appeals), NFAC, Delhi, [CIT(A)] dated05.07.2025 for Assessment Year (AY) 2019-20.

2.

Brief facts of the case are that the assesseeis a Primary Agricultural Cooperative Credit Society registered under the Tamil Nadu Co-operative Societies Act. For the Assessment Year 2019-20,

ITA No. 1039/Chny/2026 (AY 2019-20) YM 33 K A Co C S Ltd Vs ITO W 2(1) :: 2 :: the assessee did not file its return of income. Based on information available with the Department regarding cash deposits aggregating to Rs.2,38,11,100/- in various bank accounts maintained with Trichy District Central Cooperative Bank Ltd., the Assessing Officer initiated reassessment proceedings under section 147 of the Income Tax Act, 1961.Notices issued under sections 148 and 142(1) remained uncomplied with. Consequently, the Assessing Officer completed the assessment ex parte under section 144 read with section 147 and treated the cash deposits of Rs.2,38,11,100/- as unexplained money under section 69A, raising consequential tax demand.

3.

The assessee carried the matter in appeal before the Commissioner of Income Tax (Appeals).During the appellate proceedings, the CIT(A) issued notices fixing the appeal for hearing on four occasions. However, according to the appellate order, there was no compliance from the assessee on any of the dates. Holding that the assessee had failed to prosecute the appeal or produce any material to rebut the findings of the Assessing Officer, the CIT(A) dismissed the appeal and confirmed the addition.

4.

None appeared for the assessee despite service of notice for hearing. We have carefully considered the submissions of revenue and perused the material available on record. It is noticed that both the assessment as well as the first appellate proceedings were concluded ex-parte on account of non-compliance by the assessee. Consequently, neither the Assessing Officer nor the CIT(A) had the benefit of examining the assessee's explanation or supporting evidence regarding the nature and source of the impugned cash

ITA No. 1039/Chny/2026 (AY 2019-20) YM 33 K A Co C S Ltd Vs ITO W 2(1) :: 3 :: deposits. Although the assessee failed to avail the opportunities granted by the lower authorities, the interest of substantial justice requires that one final opportunity be afforded to the assessee to substantiate its claim. At the same time, the assessee is expected to extend full cooperation and diligently participate in the appellate proceedings. Accordingly, in the interest of justice and fair play, we set aside the impugned order of the CIT(A) and restore the matter to his file for fresh adjudication. The CIT(A) shall afford the assessee a reasonable opportunity of being heard, examine all documentary evidence and submissions that may be produced, and thereafter pass a speaking order in accordance with law after considering the merits of the case. The assessee is directed to cooperate fully in the remand proceedings and shall not seek unnecessary adjournments. Failure to comply with the notices issued by the CIT(A) would entitle the appellate authority to dispose of the appeal in accordance with law based on the material available on record. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on the 03rd day of August, 2026 in Chennai.

Sd/- Sd/- (इंतूरी रामा राव) (मनु कुमार िग�र) (INTURI RAMA RAO) (MANU KUMAR GIRI) लेखा सद*य/ACCOUNTANT MEMBER �या�यक सद*य/JUDICIAL MEMBER

चे�नई/Chennai, +दनांक/Dated: 03rd August, 2026. SNDP, Sr. PS

ITA No. 1039/Chny/2026 (AY 2019-20) YM 33 K A Co C S Ltd Vs ITO W 2(1) :: 4 :: 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

SAND Digitally signed by EEP SANDEEP KUMAR KUMA Date: 2026.08.05 R 16:43:19 +05'30'

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