Tax Appeals Dismissed Due to Time Bar & CBDT Circular; Delay Condoned for Covid-19

The Tribunal dismissed all appeals by Revenue and Assessee, including cross objections, based on the time-barred appeals, applicability of CBDT Circular No. 17/2019, and the disallowance of exemption u/s. 80P(2) on interest earned from a cooperative bank. The delay in appeals was condoned due to Covid-19 restrictions following Supreme Court directions. The order was pronounced on 8th June, 2022, at Chennai.

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Issues:
- Appeals by Revenue and Assessee arising out of a common order of Commissioner of Income Tax (Appeals)
- Time-barred appeals by Revenue with a delay of 248 days
- Applicability of CBDT Circular No. 17/2019 on appeals with tax effect below Rs. 50.00 lakhs
- Dismissal of appeals by Revenue based on monetary limits
- Cross objections by Assessee becoming infructuous due to dismissal of Revenue's appeals
- Time-barred appeal by Assessee with a delay of 73 days
- Disallowance of exemption u/s. 80P(2) on interest earned from Villupuram District Co-operative Bank
- Interpretation of statutory provisions and case laws related to co-operative societies and banks

Analysis:

1. Time-barred Appeals by Revenue:
- Revenue's appeals were time-barred by 248 days, attributed to Covid-19 restrictions.
- Condonation of delay granted based on directions from the Hon'ble Supreme Court.

2. Applicability of CBDT Circular No. 17/2019:
- Tax effect below Rs. 50.00 lakhs rendered appeals not maintainable as per the circular.
- Circular applied retrospectively to pending appeals, leading to the dismissal of Revenue's appeals.

3. Dismissal of Revenue's Appeals:
- Dismissal based on the CBDT Circular and the monetary limits set therein.

4. Infructuous Cross Objections:
- Cross objections by Assessee dismissed due to the dismissal of Revenue's appeals.

5. Time-barred Appeal by Assessee:
- Assessee's appeal was time-barred by 73 days, with a delay condoned due to Covid-19, following Supreme Court directions.

6. Disallowed Exemption u/s. 80P(2):
- Dispute centered on disallowance of exemption on interest earned from Villupuram District Co-operative Bank.
- AO and CIT(A) held that the bank did not qualify as a co-operative society under section 80P(2)(d) of the Act.

7. Interpretation of Statutory Provisions and Case Laws:
- Detailed analysis of statutory provisions, including section 80P and related explanations.
- Reference to case laws and judicial dictums regarding the definition and treatment of co-operative societies and banks under the Act.

8. Final Decision:
- Tribunal dismissed all appeals by Revenue and Assessee, including cross objections, based on the above analysis and interpretations.
- Order pronounced on 8th June, 2022, at Chennai.

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