K 2078 AKKARAI SENGAPPALLI PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY,AKKARAI SENGAPPALLI vs. ASSESSING OFFICER, COIMBATORE

This appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals), NFAC, Delhi [‘CIT(A)’ in short] dated 01.08.2024 for Assessment Year 2018-19.

At the outset, the Ld.AR of the assessee brought to our notice that the appeal has been filed belatedly by ‘269’ days and assessee has filed an affidavit explaining the cause for the delay. Having gone through the contents of the same, we find that cause for delay was reasonable, so we excuse the same and proceed to hear the assessee’s appeal on merits.

Brief facts of the case are that the assessee instituted appeal before the ld.CIT(A) against the income assessed u/s.144 of the Act. However, the ld. CIT(A) dismissed the appeal of the assessee as there was no response from the assessee.

Aggrieved, assessee is in appeal before us.

Before the ld. AR for assessee submitted that the ld. CIT(A) has not properly provided opportunity to represent the appeal. He also prayed that the matter may be set aside to AO for de novo assessment as the assessment is ex-parte u/s144 of the Act. The ld.DR relied upon the order of the ld.CIT(A) and pleaded for the dismissal of the appeal.

Though we some extent concur with the submissions of Ld.DR Ms. Prayati Sharma, JCIT however, keeping in mind the principles of natural justice and ex- parte orders before the AO and CIT(A), the impugned order is set aside and the appeal is restored back to the file of Ld. AO for de novo assessment subject to cost of Rs.5,000/- which shall be deposited by the assessee within ‘30’ days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same will be furnished by the Assessee before Ld.AO whose shall proceed with the assessment on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence, confirmations and documents, if any, forthwith without any fail, failing which Page 2 of 3 ld.AO shall be at liberty to proceed with the de novo assessment proceedings on merits as per law. In case of failure, the leniency shall not be granted to the assessee. The ld.AR also assures us that the assessee will co-operate in the denovo assessment proceedings diligently.

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