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Facts
The assessee, a co-operative society, claimed Section 80P deduction which was initially denied by the AO, who also made an addition under Section 68. After a series of appeals and remands where Section 80P was eventually allowed by the AO but the Section 68 addition reiterated, the CIT(A) dismissed the assessee's appeal for non-prosecution. The current appeal before the Tribunal challenges this dismissal, citing a 450-day delay due to incorrect email communication from the CIT(A).
Held
The Tribunal held that the CIT(A) erroneously dismissed the appeal for non-prosecution because notices were sent to an incorrect email address, preventing the appellant from appearing. Finding sufficient reason for the appellant's non-appearance and the 450-day delay, the Tribunal condoned the delay. The CIT(A)'s order was set aside, and the matter was remanded back to the CIT(A) for a fresh disposal after providing the appellant a reasonable opportunity of hearing.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal for non-prosecution when notices were sent to a wrong email ID, and whether the delay in filing the subsequent appeal before the Tribunal should be condoned.
Sections Cited
80P, 80P(2)(a)(i), 143(3), 68, 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI SONJOY SARMA, JM
Assessment Year: 2014-15 Chathannore Service Co-op. Bank Ltd. .......... Appellant Chathannoor S.P, Meenad, Kollam 691572 [PAN: AAAAC1371K] vs. The Income Tax Officer, WD-1 & TPS, Kollam .......... Respondent Appellant by: Shri Sabu C.S., CA Respondent by: Shri Sanjit Kumar Das, CIT-DR Date of Hearing: 13.06.2025 Date of Pronouncement: 15.07.2025 O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 12.12.2023 for Assessment Year (AY) 2014-15.
Brief facts of the case are that the appellant is a co-operative society registered under the Kerala State Co-operative Societies Act, 1969. It is classified as a primary agricultural credit co-operative society. It is engaged in the business of accepting deposits from members and providing credit facilities to members. The return of Chathannore Service Co-op. Bank Ltd. income for AY 2014-15 was filed on 12.12.2014 declaring Nil income after claiming deduction u/s. 80P of the Act. Against the said return of income, the assessment was completed by the ITO, Ward-1 & TPS, Kollam (hereinafter called "the AO") vide order dated 29.12.2016 passed u/s. 143(3) of the Income Tax Act, 1961 (the Act) at total income of 10,75,79,173/-. While doing so, the AO denied the claim for deduction u/s. 80P of the Act of Rs. 79,38,585/- and also made addition of Rs. 9,96,40,588/- treating the bank deposits, employees fund deposits, etc. as unexplained income of the assessee u/s. 68 of the Act.
Being aggrieved, an appeal was filed before the CIT(A), who vide the order dated 24.01.2017 allowed the deduction u/s. 80P(2)(a)(i) of the Act and the issue of addition u/s. 68 was set aside to the AO for de novo assessment.
Against the order of the CIT(A), the Revenue preferred appeal before this Tribunal. This Tribunal vide order dated 17.05.2019 restored the issue of deduction u/s. 80P to the file of the AO. Pursuant to the order passed by this Tribunal, the AO completed the assessment vie order dated 21.09.2021 exparte at a total income of Rs. 9,96,40,585. While doing so, the AO allowed deduction u/s. 80P of the Act and repeated the addition made u/s. 68 for the failure of the assessee to provide details as called for in the remand proceedings pursuant to CIT(A)’s order.
Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal with a delay of 450 days. The appellant filed a petition seeking condonation of delay. It is submitted that the notices issued by the CIT(A) were sent to wrong email ID, i.e. sujatha.kanthan@chevronne.com instead of the email ID given From 35, i.e., anashussain153@gmail.com. Therefore, the appellant society never received the hearing notice or the order passed u/s. 250 of the Act resulting in filing the appeal with a delay of 450 days on the assumption that the order passed u/s. 250 of the Act was received on 12.12.2023. The averments made in the condonation petition were no rebutted by the ld. CIT-DR. Since the appellant had pleaded ignorance of the order passed u/s. 250 of the Act and also notice of hearing issued by the CIT(A), we are of the considered opinion that it cannot be said that there is delay in filing the appeal since the date of knowledge of the order impugned before us had to be reckoned for the purpose of computation of limitation period of 60 days for filing the appeal. Therefore, we admit the appeal for adjudication on merits.
At the outset, we find that the CIT(A) dismissed the appeal for non prosecution without entering into the merits of the addition made by the AO. Furthermore, it is submitted before us that the notices were sent by the CIT(A) to wrong email ID sujatha.
Chathannore Service Co-op. Bank Ltd. kanthan@chevronne.com instead of anashussain153@ gmail.com. Therefore, the appellant could not cause appearance before the CIT(A). In the circumstance, we are of the considered opinion that the appellant was prevented by sufficient reason from appearing before the CIT(A). Therefore, the order of the CIT(A) is hereby set aside to remand back to the file of CIT(A) for de novo disposal in accordance with law after affording reasonable opportunity of hearing to the appellant.
In the result, the appeal stands partly allowed for statistical purposes.
Order pronounced in the open court on 15th July, 2025.