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Facts
The assessee, a Primary Cooperative Credit Society, filed two appeals before the ITAT against the orders of the CIT(A) for AY 2020-21. One appeal was against the confirmation of quantum addition, and the other was against the confirmation of penalty under Section 270A.
Held
The Tribunal condoned the significant delay of 157 days in filing the quantum appeal before the CIT(A) due to the ill-health of the society's Secretary, subject to a cost payment. Consequently, both the quantum appeal and the penalty appeal were restored to the CIT(A) for fresh adjudication on merits.
Key Issues
Whether the delay in filing the appeal before the CIT(A) can be condoned due to specific circumstances, and the validity of penalty levied under Section 270A when the quantum appeal is restored.
Sections Cited
270A, 250
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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.
is against action of the Ld.CIT(A) confirming the quantum addition made by the AO for AY 2020-21, whereas 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. 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 & 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.
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 & 2871/Chny/2025 (AY 2020-21) KK 238 P.N. Patty Veerakkal Pudur – Primary Co-op. Credit Society Ltd. 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.