K 1369 SAVANDAPUR PAACS,SAVUNDAPUR vs. INCOME TAX OFFICER, ERODE

1. This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeal)/Addl/JCIT(A)-2, (hereinafter referred to as ‘Ld.CIT(A)‘), Delhi, dated 10.01.2024 for the Assessment Year (hereinafter referred to as ‘AY‘) 2019-20.

At the outset, it is noted that there is a delay of ‘216’ days in filing of the appeal. In this regard, it is noted that the assessee is a Primary (AY 2019-20) M/s. K-1369 Savandapur PACCS Ltd. :: 2 ::

Agricultural Co-operative Society registered under the Tamil Nadu Cooperative Societies Act, 1983 and the assessee society is run by elected office bearers who are mainly from the farming sector; and didn’t use for communication the e-mail, because of it they were not aware of the proceedings happening before Ld.CIT(A); and even the information relating to passing of the impugned order, was not known to assessee.

Per contra, the Ld.DR doesn’t want us to condone the delay and wants us to dismiss the appeal.

We have heard both the parties and perused the material available on record. Brief facts are that the assessee is a Co-operative Society and it filed its return of Income (RoI) for the AY 2019-20 on 26.03.2020 admitting Nil Income by claiming deduction u/s.80P(2) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act‘), which RoI was processed by CPC, and an intimation u/s.143 (1) was passed on 13/07/2020, wherein the claim of deduction u/s.80P(2)(a)(i) of the Act was denied, (AY 2019-20) M/s. K-1369 Savandapur PACCS Ltd. resulting in an addition of Rs.1,23,298/-. Aggrieved, the assessee filed an appeal before the Ld.CIT(A) which was dismissed by order dated 10.01.2024, which information assessee came to know only on 20.10.2024 and immediately thereafter filed the appeal before this Tribunal with a delay of ‘216’ days. The assessee’s contention regarding condoning the delay has been considered and in this regard, we note that the assessee-society is a Primary Agricultural Co-operative Society registered under the Tamil Nadu Cooperative Societies Act, 1983 and consists mainly of members who are farmers, and who in turn elect office-bearers, who runs the society; and since they are from rural background and not familiar with the internet/computer, are not used to check the in-box of email or sent communication through e-mail IDs, etc, resulted in passing of ex-parte order against assessee. For the same reason, they were not even aware of the passing of the impugned order dated 03.11.2023; and when they came to know about passing of the impugned order in the third week of October, 2024, they immediately filed the same within ‘15’ days i.e. on 02.11.2024. Taking into consideration the aforesaid facts, we find that the assessee was in the dark about the passing of the impugned order, therefore, they couldn’t file the appeal within time before this Tribunal, which we find to be reasonable cause for delay; and since no gross negligence or latches could be shown on the part of the assessee, considering the overall facts, (AY 2019-20) M/s. K-1369 Savandapur PACCS Ltd. and for the interest of justice and fair play, the delay caused are condoned and we proceed to examine the appeal.

At the outset, the Ld.AR of the assessee pointed out that the impugned order is an ex parte order qua assessee. We note that the Ld.CIT(A) has not decided the grounds of appeal on merits as required u/s.250(6) of the Act. In such circumstances, for the ends of justice and fair play, we set aside the impugned order of the Ld.CIT(A) and restore the appeal back to the file of the Ld.CIT(A) with a direction to decide the appeal on merits after hearing the assessee. Ms.R.Reshma, Ld.AR of the assessee undertakes to file relevant documents/written submissions before the Ld.CIT(A) and the Ld.CIT(A) is directed to decide the grounds of appeal as per sub-section (6) of sec.250 of the Act.

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