GOVINDGARH GRAM SEWA SAHAKARI SAMITI,GOVINDGARH AJMER vs. ASSESSING OFFICER (ITO-WARD 1), KISHANGARH

IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR “A” BENCH, JAIPUR (PHYSICAL HEARING) BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER & SHRI KULDIP SINGH, JUDICIAL MEMBER ITA No: 1566 & 1567/JPR/2025 Assessment Year: 2015-16

Govindgarh Gram Sewa Assessing Sahakari Samiti Officer (ITO- Vs Govindgarh, Ajmer, Ajmer. Ward1) PAN: AABAG2543E Kishangarh (Appellant) (Respondent)

Assessee Represented: Sh. Nitesh Gupta, C.A. Revenue Represented: Sh. Abhimanyu Singh Yadav, Addl.CIT Date of hearing : 10-08-2026 Date of pronouncement : 25-08-2026 ORDER PER : KULDIP SINGH, JUDICIAL MEMBER:-

Appellant – Govindgarh Gram Sewa Sahakari Samiti by filing aforesaid interconnected appeal, sought to set aside the impugned orders both dated 19.09.2025 passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the ‘CIT(A)’] qua the assessment order for Assessment year 2015- 16 on the grounds inter-alia that:- ITA No. 1566/JPR/2025 (A.Y. 2015-16)

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“1. On the facts and in the circumstances of the case and in law, the Learned CIT(A) erred in passing the non speaking order. Ld CIT (A) not adjudicated the issue on merits and summarily dismissed the appeal. The action of the Id. CIT(A) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by quashing the said order and providing the relief to the appellant.

ITA No. 1567/JPR/2025 (A.Y. 2015-16)

“1. On the facts and in the circumstances of the case and in law, the Learned CIT(A) erred in not condoning the delay of 192 days in filing the appeal before him, despite the appellant having reasonable and bona fide cause, being non- receipt of notices and orders due to wrong email address used by the earlier counsel. Relief may please be granted by condoning the delay and providing the relief to the appellant.

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illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by deleting the said additions. 4. On the facts and in the circumstances of the case and in law, the Learned CIT(A) erred in confirming the action of the Learned Assessing Officer (AO) of opening the case under section 147 of the Income tax Act, 1961. The action of the ld. CIT(A) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by quashing the said assessment order. 5. On the facts and in the circumstances of the case and in law, the Learned CIT(A) erred in confirming the action of the Learned Assessing Officer (AO) of passing the ex-party assessment order under section 144 of the Income tax Act, 1961. The action of the Id. CIT(A) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by quashing the said assessment order. 6. The appellant reserves the right to add, amend, modify, or alter any of the above grounds of appeal before or during the course of the hearing.”

Briefly stated, facts necessary for adjudication and 2. consideration of the issues at hand are: Appellant Co-operative society being registered under Co-operative Society Act, to be engaged in the services of supplying agricultural implements, seeds, livestock or other articles intended for agricultural purpose to its members. The assessment has been framed in this case at Rs. 73,18,600/- being cash deposit, by declaring assessee’s income from undisclosed source as unexplained u/s 69A of the Act, on assessee’s failure to contest the assessment proceedings. On the basis of assessment framed u/s 147 r.w.s 144 read with

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section 144B of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) dated 29.08.2023 respectively, penalty proceedings were initiated u/s 271(1)(c) of the Act. On failure of the assessee to file any submissions to the penalty notice, the AO proceeded to levy the penalty of Rs. 22,61,447/- @ 100% u/s 271(1)(c) of the Act for A.Y. 2015-16. 3. The Assessee carried the matter before Ld. CIT(A) by way of filing appeals who have dismissed the quantum appeal in limine by rejecting the application of the assessee for condonation of delay of 192 days. Ld. CIT(A) also dismissed the appeal filed by the assessee challenging the levy of penalty u/s 271(1)(c) of the Act, on failure of the assessee to contest the same. 4. We have heard Ld. ARs for the assessee and Ld. DR for the Revenue and perused the record available on file. 5. So far as question of rejecting the application seeking of condonation of delay of 192 days by the assessee is concerned, the assessee society has come up with the specific plea that they are working in rural area and due to change of representatives managing the affairs of the society, they could not file the appeal

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within limitation. Keeping in view the totality of the facts that such society are working in the rural area of India to enhance the income of the farmers and largely being run by uneducated people who are dependent upon expert hands living in the city. 6. Even otherwise due to shift into the digital age invariably such delays are caused. In case such reasons for delay are not given liberal interpretation it would amount to denial of opportunity of being heard, which is violation of rule of natural justice. So in view of the matter we find “sufficient cause” to condone the delay of 169 days in filing the appeal before the Ld. CIT(A). 7. Ld. CIT(A) has decided the quantum appeal as well as penalty appeal at the back of assessee. No doubt in the impugned order it is recorded that notices were sent back to the assessee, but it is nowhere recorded if those notices were duly served upon the assessee. It is the duty of the quasi judicial authorities to get the service effected by applying different modes to achieve the end of justice. When Ld. CIT(A) has dismissed both the appeals i.e. quantum appeal as well as penalty appeal because of none

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appeared on behalf of the assessee without touching the merit of the case, the assessee society is required to have a reasonable opportunity of being heard. 8. Resultantly, both appeals filed by the assessee society are allowed and the impugned orders passed by the Ld. CIT(A) are hereby set aside to be heard afresh by the Ld. CIT(A) on merit after providing reasonable opportunity of being heard to the assessee. Order pronounced in the open court on 25-08-2026

Sd/- Sd/- (ANNAPURNA GUPTA) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Jaipur Dated:- 25/08/2026. *Santosh. Copy of the order forwarded to: 1. The Appellant- 2. The Respondent- 3. CIT 4. CIT(A) 5. DR, ITAT, Jaipur. 6. Guard File By order,

Asst. Registrar