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Facts
The assessee, a Primary Agricultural Cooperative Credit Society, filed its return belatedly, claiming a deduction of Rs. 25,54,183/- under Chapter VIA (80P). The AO denied this deduction under sections 144 r.w.s 147 of the Act. The CIT(A) dismissed the appeal ex-parte due to non-compliance by the assessee.
Held
The Tribunal condoned the delay in filing the appeals. It was held that the CIT(A) dismissed the quantum and penalty appeals ex-parte without adjudicating on merits. Therefore, the matter was restored to the CIT(A) for de novo adjudication.
Key Issues
Whether the CIT(A) erred in dismissing the appeals ex-parte without considering the merits of the case, and whether the appeals should be restored for fresh adjudication.
Sections Cited
144, 147, 80P, 270A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid two appeals filed by the assessee for Assessment Years (AYs) 2017-18 arises out of the orders of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 13.09.2024 & 18.09.2024.
& 1014/Chny/2025 M/s. TJSPL 3 Soorappalam PACCS Ltd. :- 2 -:
ITA No.1013/Chny/2025 (Quantum Appeal):
There is a delay of 129 days in filing the appeal by the assessee.
The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. We have considered the petition/affidavit of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned.
The assessee is a trust and filed its return of income belatedly on 21.01.2019, declaring a total income of Nil after claiming deduction under Chapter VIA (80P) at Rs. 25,54,183/-. During the assessment proceedings, the A.O passed an order u/s. 144 r.w.s 147 of the Act, denying the deduction u/s. 80P of the Act. On appeal, the Ld. CIT(A) dismissed the appeal ex-parte as the assessee had not responded to the various notices issued.
Before us, the Learned Authorized Representative (AR) submitted that the Ld. CIT(A) passed the order ex-parte without adjudicating the issue on merits. Accordingly, the AR requested that one more opportunity be granted to the assessee to present its case.
& 1014/Chny/2025 M/s. TJSPL 3 Soorappalam PACCS Ltd. :- 3 -:
We have heard the rival submissions, and perused the materials available on record. On perusal of the order of the Ld. CIT(A), we find that the deduction of Rs.25,54,183/- under Chapter VIA(80P) was confirmed solely due to non-compliance by the assessee, without adjudicating the issue on merits. In the interest of justice, we restore the matter to the file of the Ld. CIT(A) for denovo adjudication.
Accordingly, we set aside the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the Ld. CIT(A) to decide the appeal on merits. The Ld. CIT(A) shall pass a reasoned order after providing due opportunity of hearing to the assessee, in accordance with law. We also direct the assessee to co-operate with the proceedings and appear before the Ld. CIT(A) on the date of hearing without fail.
There is a delay of 148 days in filing the appeal by the assessee.
The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. We have considered the petition/affidavit of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned.
& 1014/Chny/2025 M/s. TJSPL 3 Soorappalam PACCS Ltd. :- 4 -:
This appeal relates to the penalty levied u/s. 270A of the Act, which was dismissed ex-parte by the Ld. CIT(A) due to non- compliance by the assessee. Since the quantum appeal has already been restored to the file of the Ld. CIT(A), this penalty appeal is also restored to the file of the Ld. CIT(A) for fresh adjudication. The Ld. CIT(A) shall pass a reasoned order after providing due opportunity of hearing to the assessee. We also direct the assessee to co-operate with the proceedings and appear before the Ld. CIT(A) on the date of hearing without fail.
In the result, both the appeals filed by the assessee are allowed for statistical purposes.
Order pronounced on 26th day of June, 2025 at Chennai.