THE PAKHOWAL M.P.C.S.LTD.,LUDHIANA vs. ITO, WARD-1, JAGRAON, LUDHIANA

Aforesaid appeal by assessee for Assessment Year (AY) 2018-19 arises out of an order of learned Addl. / Joint Commissioner of Income Tax (Appeals)-5, Delhi [CIT(A)] dated 07-08-2024 in the matter of an intimation issued by CPC u/s 143(1) on 12-07-2019 denying deduction claimed by the assessee u/s 80P(2)(b)(i) for Rs.6.10 Lacs. The Ld. CIT(A) did not admit the appeal for want of condonation of delay of 1571 days Aggrieved, the assessee is in further appeal before us.

The Ld. AR stated that the assessee is a cooperative society existing since 1977 and it is supplying milk to MILKFED. It is entitled for impugned deduction which was denied due to technical glitches in the software being used by the assessee for filing the return of income. The dealing Chartered Accountant came to know about the adjustment only when the outstanding demand was reflected on the income tax portal. The notices / communications were sent through email and the officer bearers had no access to electronic mode of communication as they were residing in rural areas. Accordingly, a prayer has been made for adjudication of appeal on merits which has been opposed by Ld. Sr. DR. 3. It emerges that the assessee is a cooperative society existing since the year 1977. It is a society of milk producing farmers who would supply milk to MILKFED. The background of the assessee would indicate that it is operating in rural areas and the possibilities of communication gaps during recently introduced faceless regime could not be ruled out. The assessee would not gain anything by not filing the appeal on time. Keeping in mind the guiding principles laid down by Hon’ble Supreme Court in the case of N. Balakrishnan vs. M. Krishnamurthy (7 SCC 123), we condone the delay before Ld. CIT(A). Accordingly, the impugned order is set aside and the appeal is restored back to Ld. CIT(A) for admission and adjudication on merits. The assessee is directed to plead and prove its case forthwith.

The appeal stand allowed for statistical purposes.