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Facts
The assessee, Kajla Co-operative Agricultural Credit Society Ltd., engaged in providing credit and agricultural marketing, filed its return claiming Section 80P deduction, but the AO assessed income at ₹ 69,10,303/-. The assessee's appeal to the CIT(A) was dismissed due to a 100-day delay in filing, which the assessee attributed to the Managing Director's family and medical issues, and delayed knowledge of the assessment order. Aggrieved by the dismissal, the assessee appealed to the ITAT.
Held
The Income Tax Appellate Tribunal found sufficient cause for the 100-day delay in filing the appeal before the CIT(A). The Tribunal condoned the delay, set aside the order of the CIT(A), and remitted the matter back to the CIT(A) for fresh adjudication after providing a proper opportunity of hearing to both the assessee and the Assessing Officer.
Key Issues
Whether there was sufficient cause to condone the 100-day delay in filing the appeal before the CIT(A), and whether the matter should be remitted for fresh adjudication.
Sections Cited
250, 143(3), 144B, 80P
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, KOLKATA ‘B’ BENCH, KOLKATA
Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA
PER RAKESH MISHRA, ACCOUNTANT MEMBER:
This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2020-21 dated 31.10.2023, which has been passed against the assessment order u/s 143(3) read with section 144B of the Act, dated 19.09.2022. I.T.A. No.: 311/KOL/2025 Assessment Year: 2020-21 Kajla Co-operative Agricultural Credit Society Ltd.
The assessee is in appeal before the Tribunal raising the following grounds of appeal: “1) For that on the facts and circumstances of the case, Ld. CIT (Appeals), NFAC was grossly erred in not condoning the delay of 100 days in filing the appeal and consequently not admitting for adjudication. 2) For that on the facts and circumstances of the case, action of Ld. CIT (Appeals), NFAC in not condoning the delay of 100 days thereby not admitting the appeal for adjudication is highly arbitrary, unjustified, unwarranted to the facts of the case and untenable in law in view of several decided case laws on this issue. 3) For that on the facts and circumstances of the case, Ld. CIT (Appeals), NFAC was wrong and unjustified in becoming too technical to dismiss the appeal on the ground of limitation. 4) For that on the facts and circumstances of the case, the order dated 31/10/2023 of Ld. CIT (Appeals), NFAC be set-aside and matter be resorted to the file of CIT (Appeal) NFAC for fresh adjudication. 5) We may add, alter, amend or withdraw any grounds of appeal on or before the date of hearing.”
Brief facts of the case are that the assessee is a Credit Cooperative Society engaged in the business of providing credit facilities to its members. The Society is also engaged in marketing of agricultural produce grown by its members, purchase of agricultural implement, seeds intended for agricultural use for the purpose of supplying them to its members. The assessee filed the return of income showing ‘NIL’ income after claiming deduction of ₹ 28,42,604/- u/s 80P of the Act. The case was selected for scrutiny and an order u/s 143(3) of the Act was passed by the Ld. AO assessing the total income of the assessee at ₹ 69,70,363/-. Aggrieved with the assessment order, the assessee filed an appeal before the Ld. CIT(A), who vide order dated 31.10.2023 dismissed the appeal of the assessee on the ground of delay of 100 days in filing the appeal before the Ld. CIT(A). Aggrieved with the order of the Ld. CIT(A), the assessee has filed the appeal before this Tribunal. I.T.A. No.: 311/KOL/2025 Assessment Year: 2020-21 Kajla Co-operative Agricultural Credit Society Ltd.
Rival contentions were heard and the submissions made have been examined. We find that in the appeal before the Ld. CIT(A), proper representation was not made on behalf of the assessee. The appeal has been decided ex parte, primarily on account of delay in filing the appeal before the Ld. CIT(A) which was not condoned. Neither any response was made to various notices issued by the Ld. CIT(A) nor the show cause letter issued regarding condonation of delay was responded by the assessee so as to justify the delay in filing the appeal before the Ld. CIT(A). The assessee justified the delay by stating that the assessment order came to the knowledge of the society very late and the person looking after income tax matters at their end was very disturbed continuously for family matters and medical issues and he became regular since 20 January, 2023 and the appeal was filed on 27/01/2023, which is due to be filed on 18/10/2022. The delay of 100 days was requested to be condoned. These grounds were considered as vague and sketchy without specifying the definite cause or time for which the appellant was constrained to file the appeal in time. Since no further details were provided along with documentary proof, the Ld. CIT(A) examined the judicial decisions in this regard and did not find any justification for the delay and dismissed the appeal.
Before us, it was submitted that the Managing Director was having family and medical issues and therefore, the appeal could not be attended in time. It was requested that as there was sufficient cause for the delay, the same ought to have been condoned. Therefore, we deem it appropriate in the interest of justice and fair play that another opportunity needs to be provided to the assessee to represent his case properly before the Ld. CIT(A). We, therefore, condone the delay in filing the appeal before the Ld. CIT(A). We also set aside the order of the Ld. I.T.A. No.: 311/KOL/2025 Assessment Year: 2020-21 Kajla Co-operative Agricultural Credit Society Ltd. CIT(A) and remit the appeal to him to be decided afresh, who shall allow an opportunity of being heard to the assessee and also grant an opportunity of representing the case and be heard to the Ld. AO as per rule 46A of the Income Tax Rules, 1962, if required, and thereby pass an order in accordance with law. For statistical purposes, the appeal of the assessee is allowed.
In the result, the appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 17th July, 2025. [George Mathan] [Rakesh Mishra] Judicial Member Accountant Member Dated: 17.07.2025 Bidhan (P.S.) I.T.A. No.: 311/KOL/2025 Assessment Year: 2020-21 Kajla Co-operative Agricultural Credit Society Ltd. Copy of the order forwarded to:
Kajla Co-operative Agricultural Credit Society Ltd., Kajla, Vill. Sarada, Contai, Purba Medinipur, West Bengal, 721401. 2. DCIT, Circle-27(1), Haldia.
CIT(A)-NFAC, Delhi.
CIT-
CIT(DR), Kolkata Benches, Kolkata.
Guard File. //// By order