THE SINGANALLUR CO OPERATIVE HOUSING SOCIETY LIMITED,COIMBATORE vs. INCOME TAX OFFICER NON-CORP WARD 1(4), COIMBATORE

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ITA 1427/CHNY/2026Status: DisposedITAT Chennai30 June 2026AY 2015-20165 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, while deprecating the assessee's attitude, restored the matter to the AO for fresh adjudication in the interest of justice. This was granted as a last opportunity with a condition of paying costs.

What were the facts?

The assessee, a Co-operative Housing Society, failed to respond to notices from the AO and FAA due to lack of technical infrastructure and unfamiliarity with e-proceedings. The assessment was completed ex-parte on a best judgment basis.

What were the issues?

Whether the assessee was prevented by sufficient cause from effectively representing its case before the lower authorities due to technical limitations and lack of awareness of e-proceedings.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,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: 30.06.2026Pronounced: 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 28.01.2026 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2015-16.

ITA No.1427/CHNY/2026 - 2 - The Singanallur Co Op Housing Society Ltd 2. At the very outset, we notice that the order of First Appellate Authority (FAA) is ex-parte, since there was no compliance from the assessee to two notices issued from the office of the First Appellate Authority. Further, we also note that the assessment has been completed on best judgment basis r.w.s.147 r.w.s 144 of the Act.

3.

The Ld. AR submitted that the assessee is a Co-operative Housing Society registered under the provisions of the Tamil Nadu Co-operative Societies Act, 1983. It was submitted that the assessee could not respond to the notices issued by the AO & FAA, as the society lacked adequate computer and internet infrastructure and was not conversant with the e-proceedings. It was also contended that the assessee could not upload the complete set of documentary evidence before the FAA due to the 50 MB limitation on file uploads in the portal. In these circumstances, the Ld. AR submitted that the assessee had been prevented by sufficient cause from effectively representing its case before the lower authorities. The Ld. AR, only 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 his case.

ITA No.1427/CHNY/2026 - 3 - The Singanallur Co Op Housing Society Ltd 4. The Ld.DR submitted that adequate opportunities were provided from the offices of the FAA & AO and there is no violation of principles of natural justice. Therefore, it was submitted that the appeal of the assessee may be dismissed.

5.

We have heard rival submissions and perused the materials on record. It is an undisputed fact that the proceedings before both the Assessing Officer as well as the First Appellate Authority were completed ex-parte, as the assessee failed to respond to the statutory notices issued by the respective authorities. The Ld. AR submitted that the assessee, being a Co-operative Housing Society, lacked adequate computer and internet infrastructure and was not conversant with the online mode of proceedings. It was contended that, owing to the complete absence of awareness regarding the e- proceedings, the assessee could not effectively comply with the notices issued by the Assessing Officer and the First Appellate Authority. The Ld. AR, therefore, pleaded that one more opportunity may be granted to the assessee and undertook that he would fully co-operate with the proceedings and furnish all necessary details and documentary evidence as and when called upon to do so. We strongly deprecate the nonchalant attitude of the assessee in not responding to the statutory notices issued by the FAA & AO.

ITA No.1427/CHNY/2026 - 4 - The Singanallur Co Op Housing Society Ltd However, considering the submissions of the Ld. AR and in the interest of justice and fair play, we are of the view that the matter ought to be restored to the files of the AO as a last opportunity with a condition assessee pays a costs of Rs.15,000/- (Rupees Fifteen Thousand only) to the Tamil Nadu State Legal Services Authority at the Hon'ble High Court of Madras within one month from the date of receipt of this order and produce the receipt evidencing 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 his claim and shall not seek unnecessary adjournment. It is ordered accordingly.

6.

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/- (जॉज� जॉज� के) (गगन गोयल) (GEORGE GEORGE K) (GAGAN GOYAL) लेखा सद�य/ACCOUNTANT MEMBER उपा�य� /VICE PRESIDENT चे�नई/Chennai, �दनांक/Dated, the 30th June, 2026

ITA No.1427/CHNY/2026 - 5 - The Singanallur Co Op Housing Society Ltd

RSR, Sr.PS आदेश क� ��त�ल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��यथ�/Respondent 3. आयकर आयु�त /CIT, Coimbatore 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 09:59:08 +05'30'

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