P.E.64 KODUMUDI BLOCK T AND P SERVANTS CO-OP T AND C SOCIETY LIMITED,ERODE vs. THE INCOME TAX OFFICER, WARD 2(1) ERODE, ERODE

There is a delay of 60 days in filing the appeal by the assessee in ITA No.1896/Chny/2024. The assessee has filed condonation petition stating the reasons for delay in filing the appeal. We have considered the petition of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is condoned accordingly.

The only effective ground of appeal in this appeal of assessee is against confirming the cash deposit of Rs. 96,91,399/- by the Ld. CIT(A).

4. The assessee is a co-operative society and filed return of income electronically on 28.09.2018 declaring total income at Nil after claiming exemption u/s. 80P of the Act. The case was selected for scrutiny and notices were issued u/s. 142(1) of the Act but the assessee has not complied with the notices. The A.O therefore, passed order u/s. 144 of the Act adding the cash deposit in the total income. The Ld. CIT(A)

The Ld. Authorized Representative (A.R) of the assessee before us has submitted that cash deposit is from members and submitted copy of day book, bank statement and audit report in support of its contention. The Ld AR requested that one more opportunity may be provided to explain before the Ld AO in the interest of justice as the assessment order and order of Ld. CIT(A) have been passed ex-parte.

The Ld. Departmental Representative (DR), on the other hand, has argued that the assessee has been non-complied before A.O as well as Ld. CIT(A) therefore, the assessee’s prayer should be rejected or cost may be imposed.

We have heard the rival submissions, and perused the materials available on record. The assessment order in this case has been passed u/s. 144 of the Act and the Ld. CIT(A) has also passed order ex-parte confirming the addition of unexplained cash credits of Rs.96,91,399/-. We find that the assessee has been negligent and non cooperative before the A.O as well as Ld. CIT(A). We, therefore of the opinion that keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the A.O subject to payment of costs of & 1897/Chny/2024 :- 4 -:

The A.O has levied penalty u/s 271AAC in respect of addition of cash deposit made u/s. 58 of the Act in the assessment order. As we have already set aside the assessment order, the penalty levied u/s. 271AAC(1) of the Act also set aside as it does not have leg to stand.

In the result, both the appeals filed by the assessee are allowed for statistical purposes.