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Facts
The assessee, an agricultural co-operative credit society, filed an appeal with a delay of 1517 days. The CIT(A) dismissed the appeal without adjudicating on merits, citing the delay and that the COVID-19 exclusion period did not apply. The assessee argued they are a remote society and that the delay was due to administrative reasons and the need for clarification on Section 80P deduction.
Held
The Tribunal agreed with the CIT(A) that the delay was significant and that the assessee's argument for COVID-19 related exclusion was not valid for the entire period. However, considering the assessee's status as a society of marginal farmers and a recent High Court decision on Section 80P, the Tribunal decided to remand the matter.
Key Issues
Whether the appeal filed by the assessee was liable to be dismissed solely on grounds of delay, or if the merits of the Section 80P deduction should be considered after condoning the delay.
Sections Cited
143(3), 80P
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Before: Shri S.S. Viswanethra Ravi & Shri Jagadish
O R D E R
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:
This appeal filed by the assessee is directed against the order dated 03.07.2024 passed by the Addl/JCIT (A), Thane for the assessment year 2016-17.
At the outset, the ld. AR Ms. A. Vijayalakshmi, CA challenged the action of the ld. CIT(A) in dismissing the appeal by refusing to condone the delay of 1517 days in filing the appeal on which 716 days comes within the ambit of exclusion provided by the Hon’ble Supreme Court in 2 view of Covid Pandemic-19 for the period from 15.03.2020 to 14.03.2021. She submits that the assessee does not have qualified Accountant to look after the proceedings. Further she submits that the assessee society is located in remote area of Erode district. The Tamil Nadu State Accounting and Taxation Services Co-operative Society were formed to look after the taxation matters of the Co-operative Societies. The Member has taken initiative and identified the pending proceedings of the assessee and due to the above process; there was a delay before the Covid Pandamic-19 period. She further submits that the ld. CIT(A) has not adjudicated the issue raised by the assessee on merits.
The ld. DR Shri K. Rohan Raj, Addl. CIT relied on the order of the ld. CIT(A).
After hearing both the parties, we note that assessment was completed under section 143(3) of the Income Tax Act, 1961 [“Act” in short] dated 24.12.2018 against which the assessee preferred an appeal before the ld. CIT(A) with a delay of 1517 days out of which 716 days delay comes within the ambit of exclusion provided by the Hon’ble Supreme Court in view of Covid Pandemic-19 for the period from 15.03.2020 to 14.03.2021. The ld. CIT(A) in para 5.2.1 of the impugned order, discussed the issue of exclusion of period of limitation falling between 15.03.2020 and 28.02.2022 and held the appeal of the assessee does not fall within the period where the Hon’ble Supreme Court granted relaxation. We agree with the said finding of the ld. CIT(A) as the limitation to file assessee’s appeal before the ld. CIT(A) expired on 23.01.2019 and the appeal was filed on 22.05.2023, there is delay of 1517 days . Therefore, in this regard, we find no infirmity in the order of the ld. CIT(A) and the assessee is liable to explain the delay of 1517 days.
Before us, the ld. AR submits that the assessee is an agricultural co-operative credit society having members of marginal farmers and situated in remote place at Athani via, Anthiyur of Keelavani P.O. and this fact was not disputed by the ld. DR. The ld. AR vehemently argued that the assessee has fair case in getting allowance of deduction under section 80P of the Act and there was no opportunity for the assessee before the first appellate authority. Further, she drew our attention to para
(ix) at page 5 of the assessment order and submits that the Assessing Officer particularly did not grant the allowance of deduction under section 80P of the Act only for the reason that there was no finality in the case of Ammapet PACB Ltd. which is pending before the Hon’ble High Court of Madras. The ld. AR drew our attention to the decision dated 06.12.2018 and submits that the Hon’ble High Court of Madras in the case of PCIT v. M/s. S-1308 Ammapet Primary Agricultural Cooperative Bank Ltd. in TCA No. 882 and 891 of 2018 confirmed the order of the ITAT in allowing deduction under section 80P of the Act. Though the decision of the Hon’ble High Court of Madras was available as on the date of the impugned order, but, however, the ld. CIT(A) not considered as the appeal was dismissed in limine without going into merits of the case. Therefore, taking into consideration the facts and circumstances of the case, we deem it proper to remand the matter to the file of the ld. CIT(A) for fresh consideration with a direction to condone the delay and decide the issue on merits in terms of the decision of the Hon’ble High Court of Madras in the case of PCIT v. M/s. S-1308 Ammapet Primary Agricultural Cooperative Bank Ltd. and pass order in accordance with law.