KODLIPET vs. SBN,KODAGUVS.ITO WARD 1, MADIKERI

The brief facts of the case are that the assessee is a co-operative society registered under the provisions of the Karnataka Co-operative Societies Act and their income is eligible for deduction u/s. 80P of the act. During the A.Y., the assessee had filed the return of income and claimed the Page 2 of 3 & 1624/Bang/2024 deduction u/s. 80P of the Act which was disallowed by the AO on the ground that there is no mutuality. As against the said order, the assessee preferred two appeals before the Ld.CIT(A) and contended that the order of the AO is not in accordance with the judgment of the Hon’ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. vs. CIT reported in (2021) 431 ITR 1.It seems that at the time of hearing the appeals, the assessee has not received the hearing notices through their email and therefore they have not appeared before the Ld.CIT(A), hence the Ld.CIT(A) has rejected the appeals for not prosecuting the same. The said order was also not received by the assessee and when the letter sent by the Pr.CIT, Bangalore intimating about the date of hearing of the stay petition was received, the assessee with the assistance of the Chartered Accountant verified the portal of the department and found that the Ld.CIT(A) had already passed the ex party order on 10/11/2023. The said order was also not sent to the registered email ID of the assessee and thereafter the present appeals were filed before this Tribunal with a delay of 228 days.

We have perused the application filed by the assessee in support of the delay and we found that the reason adduced by the assessee that the appellate order was not sent through their registered email ID and therefore proper action could not be taken within the limitation period, is a genuine one and therefore we are inclined to condone the delay of 228 days in filing these appeals.