O.1731 ALWARKURUCHI PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY,TENKASI vs. CIRCLE 1,TIRUNELVELI - INCOME TAX OFFICER, TIRUNELVELI

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ITA 125/CHNY/2026Status: DisposedITAT Chennai18 May 2026AY 2021-223 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal before the CIT(A) considering the peculiar circumstances and bonafide reasons. The appeal was remitted back to the CIT(A) for a fresh decision after calling for necessary details.

What were the facts?

The assessee, a cooperative credit society, filed a return declaring Nil income. The AO disallowed the deduction claimed under Section 80P and a portion of expenditure due to lack of response from the assessee. The CIT(A) dismissed the assessee's appeal due to a significant delay.

What were the issues?

Whether the delay in filing the appeal before the CIT(A) was bonafide and whether the assessee should be given an opportunity to present its case.

Which sections of the Income-tax Act were involved?

Section 80P,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI

Before: MS. PADMAVATHY.S & SHRI MANU KUMAR GIRI

For Respondent: Mr. Gautam S.Mukundan, JCIT

आदेश / O R D E R

PER PADMAVATHY.S, A.M: This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, (in short "CIT(A)") passed u/s. 250 of the Income Tax Act, 1961 (in short "the Act") dated 12.11.2025 for Assessment Year (AY) 2021-22.

2.

The assessee is a cooperative credit society and filed the return of income declaring Nil income. The case was selected for scrutiny and the

ITA No.125/Chny/2026 0.1731 Alwarkuruchi Primary Agricultural Cooperative Credit Society :- 2 -:

statutory notices were duly served on the assessee. The A.O noticed that the profit of the assessee is very low compared to the amount of cash deposited into the bank account of the assessee. The A.O also noticed that the assessee has claimed deduction u/s. 80P of the Act to the tune of Rs. 11,26,135/-. The A.O issued notices calling for the assessee to furnish details to which the assessee did not respond. The A.O therefore disallowed the entire deduction claimed u/s. 80P of the Act and also disallowed 20% of the expenditure to the tune of Rs. 13,21,096/-. Aggrieved, the assessee filed further appeal before the CIT(A). There is a delay of 176 days in filing the appeal before the CIT(A) and the CIT(A) dismissed the appeal in limine. The assessee is in appeal before the Tribunal against the order of the CIT(A).

3.

We have heard the parties, and perused the material available on record. The Ld. Authorized Representative (AR) of the assessee submitted that the assessee is run by people from rural background who do not have proper qualification or compute knowledge. The Ld. AR further submitted that there are no qualified accountants to take care of the accounting and tax related matters of the assessee. The Ld. AR also submitted that to resolve the issue of lack of qualified people to take of the audit requirements of cooperative societies the Govt. of Tamil Nadu formed Tamil Nadu State Accounting and Taxation Services Society Ltd. with the primary object of creating awareness to the cooperative societies to comply with tax related matters and to provide tax related services to the societies. It is submitted that the assessee post receiving the services, became aware of the tax proceedings and the appeal was filed before the CIT(A). Accordingly the ld. AR submitted that the reasons for the delay in filing the appeal are bonafide and accordingly prayed that the delay may be condoned. Considering the facts and

ITA No.125/Chny/2026 0.1731 Alwarkuruchi Primary Agricultural Cooperative Credit Society :- 3 -:

circumstances peculiar to assessee's case and in the interest of natural justice, we are inclined to give one more opportunity to the assessee to substantiate the claim by producing the required details. Accordingly, we condone the delay in filing the appeal before the CIT(A) and remit the appeal back to the CIT(A) with a direction to call for necessary details and decide the issue in accordance with law. The assessee is required to submit the necessary details as may be called for and cooperate with appellate proceedings. It is ordered accordingly.

4.

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

Order pronounced on 19th day of May, 2026 at Chennai.

Sd/- Sd/- (मनु कुमार िग!र) (पदमावती यस) (Manu Kumar Giri) (Padmavathy.S) लेखा सद�य लेखा सद�य सद�य /Accountant Member सद�य �याियक �याियक सद�य �याियक �याियक सद�य सद�य / Judicial Member सद�य लेखा लेखा चे�नई/Chennai, �दनांक/Dated: 19th May, 2026. EDN, Sr. P.S आदेश क� �ितिल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकर आयु!/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय �ितिनिध/DR 5. गाड� फाईल/GF EJTADA Digitally signed by EJTADA DURGA DURGA NARESH Date: 2026.06.01 NARESH 14:30:00 +05'30'

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