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Facts
The assessee, a primary agricultural co-operative credit society, filed its return declaring Nil income after claiming deduction under Section 80P. The AO disallowed the deduction and assessed income at Rs. 6,77,098/-. The assessee's appeal before the Addl. CIT(A) was dismissed due to a delay of 457 days, partly attributed to the Covid-19 pandemic.
Held
The tribunal held that the Addl. CIT(A) was not justified in dismissing the appeal solely on the ground of limitation without considering the reasons for delay and without providing an opportunity of being heard. The tribunal condoned the delay and remanded the matter for fresh adjudication on merits.
Key Issues
Whether the Addl. CIT(A) was justified in dismissing the appeal without considering the reasons for delay and without affording a proper opportunity of being heard to the assessee. Whether the delay in filing the appeal should be condoned.
Sections Cited
80P, 143(3), 80P(2)(a)
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Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI
Before: SHRI SS VISWANETHRA RAVI & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A)-1, Surat [hereinafter “Addl. CIT(A)”] dated 30.09.2024 in the matter of assessment framed by Assessing Officer [AO] u/s. 143(3) of the Income-tax Act, 1961 (hereinafter “the Act”) dated 27.08.2019.
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.
Order pronounced on 26th May, 2025.