CHATHAMANGALAM SERVICE CO-OPERATIVE BANK LTD,CHATHAMANGALAM vs. ASST. COMMISSIONER OF INCOME TAX, KOZHIKODE

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 engaged in the business of banking. The return of income for AY 2015-16 was filed on 12.03.2016 declaring income of Rs. 94,93,792/- and the same was claimed as deduction u/s. 80P of the Income Tax Act, 1961 (the Act). Against the said return of income, Chathamangalam Service Co-op. Bank Ltd. the assessment was completed by the ACIT, Circle 2, Kozhikode (hereinafter called "the AO") vide order dated 03.08.2017 passed u/s. 143(3) of the Act by disallowing the claim for deduction u/s. 80P of the Act on the ground that no evidence was shown that the appellant is a primary agricultural co-operative society.

Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO.

Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal.

At the outset, there is a delay of 545 days in filing the present appeal. The appellant had filed a petition seeking condonation of delay. The only reason given by the appellant is that the work was outsourced to an outside agency. No details, such as the name of the agency, evidence to prove that the work was given to such agency, etc. were not furnished. The appellant society simply attempts to shift the burden to the shoulders of the so called outsourcing agency. Keeping in view the decision of the Hon'ble Supreme Court in the case of Mrinmoy Maity v. Chhanda Koley [2024] SCC OnLine SC 551 wherein the Hon’ble Supreme Court observed that an litigant who approach the court belatedly or in other words sleeps over his rights for a considerable period of time, wakes up from his deep slumber ought not to be granted the extraordinary relief as delay is defined as guilty.