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Facts
The assessee, a Primary Agricultural Cooperative Society, filed an appeal against the order confirming the disallowance of exemption under section 80P. The appeal was filed with a delay of 2 days, accompanied by a condonation petition due to a delay in obtaining the cooperative audit report.
Held
The Tribunal condoned the delay and admitted the appeal. It held that the CIT(A) was not justified in dismissing the appeal pending the decision on the condonation petition for delay in filing the return of income, especially when a specific ground was raised about it.
Key Issues
Whether the CIT(A) was justified in confirming the disallowance of exemption under Section 80P when the delay in filing the return was due to a delay in the cooperative audit and the condonation petition was pending.
Sections Cited
80P, 119(2)(b)
AI-generated summary — verify with the full judgment below
Before: Shri S.S. Viswanethra Ravi & Shri Ratnesh Nandan Sahay
Year: 2022-23 KK 168 Naripalli Primary Agri. Co- Vs. The Income Tax Officer, operative Society Limited, Naripalli, Ward 1, Harur Taluk, Dharmapuri District, Dharmapuri. Tamil Nadu 636 906. [PAN:AABAK5075F] (अपीलाथ�/Appellant) (��थ�/Respondent) अपीलाथ� की ओर से / Appellant by : Shri S.P. Chidambaram, Advocate ��थ� की ओर से/Respondent by : Ms. Sandhya Rani Kure, JCIT सुनवाई की तारीख/ Date of hearing : 18.09.2025 घोषणा की तारीख /Date of Pronouncement : 23.09.2025 आदेश /O R D E R
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:
This appeal filed by the assessee is directed against the order dated 04.04.2025 passed by the Addl/JCIT(A)-1, Bengaluru for the assessment year 2022-23.
We find that this appeal is filed with a delay of 2 days. The assessee filed an affidavit for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, we find the reasons stated by the assessee are bonafide, which really prevented in filing the appeal in time. Thus, the delay is condoned and admitted the appeal for adjudication.
The assessee raised 7 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is justified in confirming the disallowance of exemption claimed under section 80P of Income Tax Act, 1961 [“Act” in short] in the facts and circumstances of the case.
4. At the outset, the ld. AR Shri S.P. Chidambaram, Advocate submits that the assessee is a Primary Agricultural Cooperative Society Registered under Tami Nadu Cooperative Society Act 1983 and the Society is under the obligation to get the books of accounts audited. The statutory Auditor of the Society is the Tamil Nadu Co-operative Department. He submits that the audit reports for AY 2021-22 was completed belatedly and the Cooperative Department has not taken up the audit on time. He further submits that due to delay in non-completion of Cooperative audit, the assessee was not able to file income tax returns on or before 07.11.2022. The ld. AR submits that the assessee filed condonation petition under section 119(2)(b) of the Act for condoning the delay in filing return of income and same is pending before CCIT, Coimbatore. By relying upon the decision in the case of AA520 Veerappampalayam PACS v. ITO in dated 30.04.2025, the ld. AR prayed that the matter may be remanded to the file of the ld. CIT(A) for fresh adjudication.
The ld. DR Ms. Sandhya Rani Kure, JCIT relied on the order passed by the ld. CIT(A).
We have heard both the parties and perused the material available on record. We find that the ld. CIT(A) confirmed the disallowance of claim of deduction under section 80P of the Act as the assessee has not filed the return of income within the due date prescribed under the Act. We find force in the argument of the ld. AR that the ld. CIT(A) was not justified in dismissing the appeal of the assessee pending receipt of decision of the CCIT, Coimbatore against the condonation petition filed under section 119(2)(b) of the Act for condoning the delay in filing the ITR. We note that the assessee has raised a specific ground that the condonation petition has been filed before the CCIT, Coimbatore and his order is awaited. By following the order of this Tribunal in the case of AA520 Veerappampalayam PACS v. ITO (supra) and considering the identical facts of the case, we deem it proper to remand the matter to the file of the ld. CIT(A) to decide the issue on merits taking into account the order of the ld. CCIT, Coimbatore on the delay condonation petition filed under section 119(2)(b) of the Act dated 01.06.2025, which is pending before the ld. CCIT being the competent authority. Thus, the grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 23rd September, 2025 at Chennai.