EG544K RAMANATHAPURAM PACCS LTD.,ERODE vs. ITO, WARD-2(1), ERODE

The assessee is a primary agricultural co-operative credit society and filed its return of income on 03.03.2018 declaring total income at Nil after claiming deduction u/s. 80P of the Act. The A.O in the assessment order passed u/s. 143(3) of the Act has not allowed the claim of deduction u/s. 80P(2)(a) of the Act and assessed income at Rs.6,77,098/-. Aggrieved, the assessee preferred an appeal before Ld.

Addl. CIT(A). The Ld. Addl. CIT(A) held that the appeal was filed after delay of 457 days including the delay of 281 days attributed to the Covid-19 pandemic. The Ld Addl. CIT(A) therefore did not condone the delay and dismissed the assessee’s appeal. The Ld. Addl. CIT(A) after dismissing the appeal for not condoning the delay in filling the appeal has gone ahead and held that assessee is not eligible for 80P(2)(a) of the Act deduction without hearing the assessee.

The Ld. Authorized Representative (A.R) of the assessee before us has submitted that there was a genuine reason for delay in filing the appeal and the Ld. Addl. CIT(A) without providing opportunity had dismissed the appeal and therefore, he may be directed to condone the delay in filing the appeal of 457 days and adjudicated the appeal after providing proper opportunity .

The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities.

We have heard the rival submissions, and perused the materials available on record. We find that the Ld. Addl. CIT(A) refused to condone the delay in filing the appeal of 457 days, which includes the delay of 281 days attributable to the Covid-19 pandemic. In our considered view, the Ld. CIT(A) was not justified in dismissing the purely on the ground of limitation without taking into account the reasons for the delay and without affording a proper opportunity of being heard to the assessee. In the interest of justice and considering the principles of natural justice, we are of the opinion that the delay ought to have condoned, and the appeal adjudicated on merits.

Accordingly, we set aside the order passed by the Ld. Addl. CIT(A) and remit the matter to his file with a direction to condone the delay and decide the appeal afresh, after providing due opportunity of being heard to the assessee in accordance with law. The assessee is also directed to cooperate with the proceedings and appear before the Ld. Addl. CIT(A) on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes.

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