E2606 NELLIKUPPAM PACCS LTD.,CUDDALORE vs. ITO, WARD-4,, CUDDALORE

There is a delay of 151 days in filing the present appeal before the Tribunal. The assessee-society has filed an affidavit explaining the reasons for the belated filing of the appeal. It has been stated that the assessee is a Primary Agricultural Co-operative Credit Society engaged primarily in providing agricultural credit facilities to its members. The Secretary and other office bearers of the society were not conversant with the procedural requirements of income-tax appellate proceedings. Upon receipt of the order of the FAA, the Secretary approached the Joint Registrar of Co-operative Societies for guidance regarding the further course of action and, based on the advice received, took steps to consult the statutory auditor/Chartered Accountant for filing the appeal. Accordingly, the delay had occurred on account of the time consumed in obtaining proper guidance and professional assistance for pursuing the appellate remedy. 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.

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. The Ld. AR submitted that the First Appellate Authority (FAA) had issued two notices of hearing within a short span of time. In response to the first notice, the assessee-society had sought an adjournment. However, the subsequent notice issued by the FAA was inadvertently not taken note of by the assessee-society, resulting in non-compliance. The Ld. AR further submitted that even the assessment proceedings had remained unattended and hence, the AO passed best judgment assessment order. The Ld.AR contended that the assessee was prevented by sufficient cause from effectively representing its case 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

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.

We have heard rival submissions and perused the materials on record. The proceedings before the AO as well as the FAA were ex-parte, since the assessee did not respond to various notices issued from the office of the AO & FAA. The Ld. AR submitted that one more opportunity may be granted to the assessee to represent its case before the AO and undertook that assessee society would duly appear and furnish the necessary details as and when called for. We strongly deprecate the nonchalant attitude of the assessee in not responding to the statutory notices issued by the FAA & AO. 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 cost of Rs.10,000/- (Rupees ten thousand only) to be paid to Tamil Nadu State Legal Services Authority at the

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