MEYYATHUR PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY LIMITED (E2618),MEYYATHUR vs. INCOME TAX OFFICER, WARD 2, CUDDALORE

ITA 1337/CHNY/2026Status: DisposedITAT Chennai30 June 2026AY 2018-20197 pages

AI SummaryRemanded

What did the Tribunal hold?

The ITAT condoned the 4-day delay in filing the appeal before the FAA, finding the reasons bona fide. The Tribunal restored the matter to the Assessing Officer for fresh adjudication, directing the assessee to pay costs.

What were the facts?

The assessee-society faced a delay in filing an appeal before the FAA due to the demise of its Secretary, who handled all tax matters. The FAA dismissed the appeal in limine for unexplained delay. The ITAT condoned the delay and considered the appeal on merits.

What were the issues?

Whether the delay in filing the appeal before the FAA was sufficiently explained and whether the matter should be remanded for fresh adjudication due to ex-parte proceedings.

Which sections of the Income-tax Act were involved?

Section 250

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: 30.06.2026

आदेश/ O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 15.05.2024 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2018-19.

ITA No.1337/CHNY/2026 - 2 - Meyyathur Primary Agrl.Coop Credit Society 2. There is a delay of 585 days in filing this appeal before the Tribunal. The assessee-society has filed an affidavit for condonation of delay stating therein the reasons for delay. It was stated that that the Secretary of the assessee-society, who was the authorized signatory and solely responsible for handling income-tax matters and access to the income-tax e-filing portal, had unfortunately passed away. Since he alone possessed the login credentials and digital access to statutory communications, the society could not access the e-filing portal and remained unaware of the appellate order. It was further explained that, being governed by the provisions of the Tamil Nadu Co-operative Societies Act, the appointment of a new Secretary and authorized signatory required internal resolutions and administrative approvals from the competent authorities, which consumed considerable time. The assessee became aware of the dismissal of the appeal only upon initiation of recovery proceedings and thereafter immediately took steps to file the present appeal. 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.

ITA No.1337/CHNY/2026 - 3 - Meyyathur Primary Agrl.Coop Credit Society 3. At the outset, we note that the First Appellate Authority (FAA) dismissed the appeal in limine without examining the issues on merits, on the ground that the delay of 4 days in filing the appeal had not been explained. The FAA observed in para 5.2 of the impugned order that the assessee had not filed any condonation application or has submitted any details regarding condonation of delay. The FAA further noted that in Form No. 35, the assessee had indicated that there was no delay in filing the appeal. Accordingly, holding that no sufficient cause had been shown for the delay, the FAA declined to condone the delay of 4 days and dismissed the appeal in limine.

Aggrieved by the order of the FAA, the assessee has filed the present appeal before the Tribunal. Before the Tribunal, the assessee has filed an affidavit stating the reasons for delay in filing the appeal before the FAA. It was stated that the Secretary of the assessee- society, who was exclusively handling statutory and income-tax matters, had unfortunately passed away, resulting in administrative difficulties in accessing the income-tax e-filing portal and attending to the appellate proceedings. It was further submitted that, being a Primary Agricultural Co-operative Credit Society functioning under the administrative control of the Co-operative Department, the society was required to complete internal approvals and procedural

ITA No.1337/CHNY/2026 - 4 - Meyyathur Primary Agrl.Coop Credit Society formalities for appointing and authorizing a new signatory, which caused the marginal delay of 4 days in filing the appeal before the FAA. The Ld. AR contended that the delay was neither deliberate nor intentional and pleaded that the same be condoned.

The Ld. AR further submitted that even the assessment proceedings were completed ex-parte as the assessee was unable to effectively participate for the very same reasons. It was contended that the assessee was prevented by sufficient cause from representing its case before AO & FAA. The Ld.AR, 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 case. The Ld.AR undertook that he would duly appear and furnish the necessary details as and when called for.

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. Therefore, it was submitted that the appeal of the assessee may be dismissed.

We have heard the rival submissions and perused the material available on record. We notice that the FAA dismissed the appeal on

ITA No.1337/CHNY/2026 - 5 - Meyyathur Primary Agrl.Coop Credit Society the ground that the assessee had neither explained the delay of 4 days in filing the appeal nor filed any petition supported by an affidavit seeking condonation of delay. Before us, the assessee has filed an affidavit explaining that the delay occurred due to the demise of the Secretary of the assessee-society, who was handling all statutory and income-tax matters, resulting in administrative difficulties in accessing the income-tax e-filing portal. We find the explanation to be bona fide and reasonable. Considering the totality of the facts and circumstances, particularly the short delay of only 4 days, we are satisfied that the assessee was prevented by sufficient cause from filing the appeal within the prescribed period. Accordingly, the delay of 4 days in filing the appeal before the FAA is condoned.

We further notice that both the assessment proceedings before the Assessing Officer and the appellate proceedings before the FAA were completed ex parte. The Ld. AR submitted that, owing to the demise of the Secretary who was exclusively handling the income-tax matters, the assessee could not effectively participate in the proceedings before the lower authorities. 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

ITA No.1337/CHNY/2026 - 6 - Meyyathur Primary Agrl.Coop Credit Society ought to be restored to the files of the AO with a condition assessee pays a cost of Rs.15,000/- (Rupees fifteen thousand only) 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 matter is 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.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the open court on 30th 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 30th June, 2026 RSR, Sr.PS

ITA No.1337/CHNY/2026 - 7 - Meyyathur 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 09:55:34 +05'30'

Recent GST High Court judgments

Search GST case law →