VYAVASAYA SEVA SAHAKARA BANK NIYAMITHA ANTHARAGATTE,CHICKMAGALUR vs. INCOME TAX OFFICER, WARD-1, CHICKMAGALUR, CHIKAMANGALUR
Income Tax Appellate Tribunal, ‘B’ BENCH : BANGALORE
Before: SHRI LAXMI PRASAD SAHU & SHRI SOUNDARARAJAN K.Assessment Year : 2018-19
PER SOUNDARARAJAN K., JUDICIAL MEMBER
This is an appeal filed by the assessee challenging the order of the NFAC, Delhi dated 26/11/2024 in respect of the A.Y. 2018-19. 2. The assessee is a co-operative society and filed their return of income on 26/04/2022. The case was reopened u/s. 148 for the reason that there
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was cash deposits in bank account. The assessee had not filed any reply to the various notices issued u/s. 148A(b), 142(1) and show cause notice u/s.
144. Therefore based on the records available with the AO, the best judgement assessment u/s. 144 was made in which the cash deposits made to the bank account was treated as unexplained money u/s. 69A of the Act.
As against the said order, the assessee filed an appeal before the Ld.CIT(A) with a delay of 259 days. The assessee also filed an application to condone the said delay. The Ld.CIT(A) had rejected the appeal on the ground that the appeal was filed with a delay of 4 years and 6 months which was not properly explained.
As against the said order, the present appeal has been filed before this Tribunal.
At the time of hearing, the Ld.AR brought to our notice that the assessment order was dated 03/03/2023 and the appeal was filed on 17/11/2023 and therefore there was a delay of 259 days. By mistakenly the Ld.CIT(A) had observed that there was a delay of 4 years and 6 months and on that basis, the Ld.CIT(A) had dismissed the appeal which is not correct. The Ld.AR further submitted that the cash deposits are nothing but the loan repayments made by the members to the assessee which was subsequently deposited into its bank accounts and therefore the deposits are having proper sources. The Ld.AR further submitted that since the assessee is a co-operative society rendering service through their staffs who are all not well versed with the computers and therefore the assessee was not able to respond to the various notices as well as was not able to file the appeal in time and prayed to grant an opportunity to appear before the AO.
The Ld.DR relied on the orders of the lower authorities and prayed to dismiss the appeal.
We have heard the arguments of both sides and perused the materials available on record.
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7. From the appeal order dated 26/11/2024, we find that the Ld.CIT(A) himself had mentioned in page 1 that the appeal was instituted on 17/11/2023 as against the order of the AO dated 03/03/2023. In such circumstances, we do not find, how the Ld.CIT(A) had observed that there was a delay of 4 years and 6 months. The Ld.CIT(A) on the misconception that the appeal was filed after a period of 4 years and 6 months had dismissed the appeal on the ground of limitation which in our opinion is not correct. Further, we have considered the submission made by Ld.AR that the assessee is having only two staff members who are not well versed with the operating of the computers and therefore the notices sent through the email ID of the assessee and the order passed were not viewed in time to respond and file the appeal in time.
Considering the above said facts and circumstances, we are inclined to grant one more opportunity to appear before the AO for detailed verification of the cash deposits made in the bank accounts of the assessee. We, therefore, set aside the order of the lower authorities and remit this issue to the file of the AO for denovo consideration and the assessee is also directed to co-operate with the AO and finalise the assessment as expeditiously as possible without seeking further time.
In the result, the appeal filed by the assessee is partly allowed for statistical purposes.
Order pronounced in the open court on 07th November, 2025. (LAXMI PRASAD SAHU)
Judicial Member
Bangalore,
Dated, the 07th November, 2025. /MS /
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Copy to:
1. Appellant
Respondent 3. CIT
DR, ITAT, Bangalore
Guard file
CIT(A)
By order