EYYALUR PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LIMITED (E2723),EYYALUR vs. INCOME TAX OFFICER, WARD 2, CUDDALORE,

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ITA 1336/CHNY/2026Status: DisposedITAT Chennai29 June 2026AY 2019-20206 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay, noting the assessee's rural location and lack of in-house tax expertise. It was held that the assessee was prevented from effectively representing its case due to notices being sent electronically when postal communication was opted for.

What were the facts?

The assessee, a primary agricultural co-operative credit society, filed appeals with a significant delay. The lower appellate authority's orders were ex-parte due to the assessee's non-compliance with notices.

What were the issues?

Whether the ex-parte orders passed by the lower authorities were justified, considering the assessee's circumstances and communication mode issues. Whether a fresh opportunity should be granted to the assessee to present its case.

Which sections of the Income-tax Act were involved?

Section 250,Section 147,Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI

Before: SHRI GEORGE GEORGE K & SHRI GAGAN GOYAL

Hearing: 29.06.2026Pronounced: 29.06.2026

आदेश/ O R D E R PER BENCH: These appeals filed by the assessee are directed against two orders of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi both dated 28.03.2025 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Years are 2018-19 & 2019-20.

ITA Nos.1335 & 1336/CHNY/2026 - 2 - Eyyalur Primary Agrl.Coop Credit Society 2. There is a delay of 281 days in filing these appeals before the Tribunal. The assessee-society has filed an affidavit for condonation of delay stating therein the reasons for delay. It was stated that the assessee is a Primary Agricultural Co-operative Credit Society functioning in a rural area. It does not have an in-house legal taxation department and depends entirely upon external tax consultants for handling income-tax proceedings and appellate matters. It was submitted that the assessee society had entrusted filing of appeals within the prescribed limitation period to a tax consultant, who failed to file the appeals. Immediately upon becoming aware of the lapse, the assessee society engaged new counsel, who obtained the relevant records and filed the present appeals. On perusal of the reasons stated, we are of the view that no latches can be attributed to the assessee as there is sufficient cause for belated filing of this appeal. Hence, we condone the delay and proceed to dispose off the appeal on merits.

3.

At the very outset, we notice that the orders of First Appellate Authority (FAA) are ex-parte, since there was no compliance from the assessee to various notices issued from the office of the FAA. Further, we also note that the assessments have been completed on best judgment basis r.w.s.147 r.w.s 144B of the Act.

ITA Nos.1335 & 1336/CHNY/2026 - 3 - Eyyalur Primary Agrl.Coop Credit Society 4. The Ld. AR submitted that the assessee is a Primary Agricultural Co-operative Credit Society Ltd., registered under the provisions of the Tamil Nadu Co-operative Societies Act, 1983, functioning in a rural area. The Ld. AR further submitted that while filing Form No. 35, the assessee had specifically opted for communication through the postal mode, considering its limited administrative and digital infrastructure. However, all the notices issued by the FAA were served only through electronic mode, and no physical notices were served at the registered address of the assessee society. Consequently, the assessee remained unaware of the hearing notices and was deprived of the opportunity to file written submissions and supporting documents before the FAA. As a result, the appeals came to be dismissed ex-parte. The Ld. AR further submitted that even the assessment proceedings were completed ex-parte, as the assessee could not effectively participate in the proceedings for the same reasons. The Ld.AR contended that the assessee was prevented by sufficient cause from effectively representing its cases before the lower authorities and hence, pleaded that one more opportunity be granted to the assessee and the matter be restored to the file of the AO, so as to enable the assessee to effectively present its cases. The Ld.AR undertook that he would duly appear and furnish the necessary details as and when called for.

ITA Nos.1335 & 1336/CHNY/2026 - 4 - Eyyalur Primary Agrl.Coop Credit Society 5. The Ld.DR submitted that adequate opportunities were provided from the offices of the FAA and there is no violation of principles of natural justice.

6.

We have heard rival submissions and perused the material on record. We notice that both the assessment proceedings before the AO as well as the appellate proceedings before the FAA were concluded ex parte, as the assessee failed to respond to the notices issued by the respective authorities. We strongly deprecate the nonchalant attitude of the assessee in not responding to the statutory notices issued by the FAA & AO. The Ld. AR submitted that the assessee is a Primary Agricultural Co-operative Credit Society functioning in a rural area with limited administrative and digital infrastructure. Though the assessee had opted for communication through postal mode in Form No. 35, the notices were issued only through electronic mode and, therefore, the assessee remained unaware of the proceedings. It was further submitted that even the assessments were completed ex-parte and, therefore, one more opportunity may be granted. The Ld. AR undertook that he would duly appear and furnish all the necessary details as and when called for. Considering the submissions of the Ld. AR and in the interest of justice and fair play, we are of the view that the matters ought to be

ITA Nos.1335 & 1336/CHNY/2026 - 5 - Eyyalur Primary Agrl.Coop Credit Society restored to the files of the AO with a condition assessee pays a cost of Rs.10,000/- (Rupees ten thousand only) in each appeal, aggregating to Rs.20,000/-, to the Tamil Nadu State Legal Services Authority, Hon'ble High Court of Madras, within one month from the date of receipt of this order and produce proof of such payment before the AO. Accordingly, the matters are remitted to the files of the AO for fresh adjudication. The AO shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co-operate with the Revenue and furnish all requisite details and evidences in support of its claim and shall not seek unnecessary adjournment. It is ordered accordingly.

7.

In the result, the appeals filed by the assessee are allowed for statistical purposes.

Order pronounced in the open court on 29th June,2026 at Chennai.

Sd/- Sd/- (गगन गोयल) (जॉज� जॉज� के) (GEORGE GEORGE K) (GAGAN GOYAL) लेखा सद�य/ACCOUNTANT MEMBER उपा�य� /VICE PRESIDENT चे�नई/Chennai, �दनांक/Dated, the 29th June, 2026 RSR, Sr.PS

ITA Nos.1335 & 1336/CHNY/2026 - 6 - Eyyalur Primary Agrl.Coop Credit Society

आदेश क� ��त�ल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��यथ�/Respondent 3. आयकर आयु�त /CIT, Chennai 4. �वभागीय ��त�न�ध/DR 5. गाड� फाईल/GF. By Order Digitally signed by REKHA REKHA SENTHIL RAJ SENTHIL RAJ Date: 2026.07.02 09:54:53 +05'30'

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