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Facts
The assessee, a Primary Cooperative Credit Society, filed appeals against the Ld.CIT(A)'s orders for AY 2020-21, relating to a quantum addition and a penalty under Section 270A. The Ld.CIT(A) had dismissed the quantum appeal due to a 157-day delay in filing, caused by the Secretary's ill-health, and subsequently confirmed the penalty.
Held
The Tribunal condoned the 157-day delay in filing the quantum appeal, subject to the assessee depositing Rs.10,000/- to the State Legal Aid Authority. Both the quantum and penalty appeals were set aside and restored to the file of the Ld.CIT(A) for fresh adjudication on merits, with specific directions to consider all grounds including the validity of the penalty under Section 270A.
Key Issues
Condonation of delay in filing appeals due to medical reasons and the validity of penalty under Section 270A when the quantum appeal was dismissed technically and without specifying the limb under Section 270A(9).
Sections Cited
Section 270A of the Income Tax Act, 1961, Section 250(6) of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, B BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI S.R.RAGHUNATHA
आदेश / O R D E R PER ABY T. VARKEY, JM: These are appeals preferred by the assessee against the orders of
the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter
referred to as “the Ld.CIT(A)”), Delhi, dated 30.07.2024 for the
Assessment Year (hereinafter referred to as "AY”) 2020-21. ITA
No.2870/Chny/2025 is against action of the Ld.CIT(A) confirming the
quantum addition made by the AO for AY 2020-21, whereas ITA
No.2871/Chny/2025 is against the action of the Ld.CIT(A) confirming the
ITA Nos.2870 & 2871/Chny/2025 (AY 2020-21) KK 238 P.N. Patty Veerakkal Pudur – Primary Co-op. Credit Society Ltd. :: 2 ::
penalty levied u/s.270A of the Income Tax Act, 1961 (hereinafter referred
to as ‘the Act‘) for AY 2020-21 .
At the outset, it was brought to our notice that the Ld.CIT(A) while
considering the quantum appeal has refused to condone the delay of ‘157’
days in filing of appeal before him and therefore dismissed the appeal
without going into the merits of the case. Further, it was brought to our
notice that there was no delay in filing of the penalty appeal before the
Ld.CIT(A). However, the Ld.CIT(A) has confirmed the penalty inter-alia,
since he has dismissed the quantum appeal supra. In respect of the
delay in filing of appeal before the Ld.CIT(A) [quantum appeal], the Ld.AR
brought to our notice that the assessee is a Primary Cooperative Credit
Society functioning at Salem. And the reason for the delay [in filing of
appeal before the Ld.CIT(A)] was attributed to the ill-health of the
Secretary of the assessee-Society who was bed-ridden and had to be
hospitalized at the time when the appeal had to be filed. In this regard, it
is noted that the assessment order was passed on 08.09.2022 and the
Secretary was hospitalized due to complications from Covid-19 and
therefore couldn’t hand over the assessment order to the Ld.AR to file the
appeal which led to the delay of ‘157’ days in filing of appeal before the
First Appellate Authority. Considering the fact that the assessee is a
Primary Co-operative Credit Society and considering the ill-health of the
ITA Nos.2870 & 2871/Chny/2025 (AY 2020-21) KK 238 P.N. Patty Veerakkal Pudur – Primary Co-op. Credit Society Ltd. :: 3 ::
Secretary, the delay in filing of appeal before the Ld.CIT(A) needs to be
condoned and we condone the delay before the Ld.CIT(A) subject to
assessee remitting cost of Rs.10,000/- to the State Legal Aid Authority,
Hon’ble Madras High Court within three (3) months of receipt of this
order; and produce necessary proof of depositing the same before the
Ld.CIT(A). Hence, we set aside the impugned order of the Ld.CIT(A) and
restore the quantum appeal back to the file of the Ld.CIT(A) to be decided
afresh after hearing the assessee in accordance to law. Coming to the
penalty appeal (supra), we note that the Ld.CIT(A) has confirmed the
action of levy of penalty by noting inter-alia that assessee didn’t file any
documents in support its grounds against levy of penalty (refer Para
No.5.3) and also taking note of dismissal of quantum appeal and find fault
with the omission on the part of assessee not able to substantiate its
claim and confirmed the penalty. The assessee is noted to have raised a
legal issue against levy of penalty which reads as under:
3) Without prejudice, the Learned Commissioner (Appeals) also erred in not considering that the Assessing Officer did not specify any particular limb under Sub-Section (9) of Section 270A of the Act, making the entire levy vague, ambiguous and unsustainable in law. 3. Since we have restored the quantum appeal back to the file of the
Ld.CIT(A), we restore penalty appeal also back to the file of the Ld.CIT(A)
with a direction to decide the grounds of appeal as per sub-section (6) of
Section 250 of the Act. The assessee is directed to participate and file the
ITA Nos.2870 & 2871/Chny/2025 (AY 2020-21) KK 238 P.N. Patty Veerakkal Pudur – Primary Co-op. Credit Society Ltd. :: 4 ::
written submissions/relevant documents to substantiate its grounds of appeal. The Ld.CIT(A) to pass speaking order in accordance to law after hearing the assessee.
In the result, appeals filed by the assessee are allowed for statistical purposes.
Order pronounced on the 04th day of February, 2026, in Chennai.
Sd/- Sd/- (एस. आर. रघुनाथा) (एबी टी. वक�) (S.R.RAGHUNATHA) (ABY T. VARKEY) लेखा सद�य/ACCOUNTANT MEMBER �याियक सद�य/JUDICIAL MEMBER चे�ई/Chennai, �दनांक/Dated: 04th February, 2026. TLN आदेश क� �ितिलिप अ�ेिषत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF