TaxTMI 
TaxTMI 
2026 (9) TMI 1154
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....ublic dated 10.09.2025, stating the reasons for the delay, which are reproduced below for ease of reference and convenience: 4. Before us, the ld. AR of the assessee reiterated the same as stated in the condonation application & vehemently submitted that the assessee could not file the appeal within the prescribed period for the reason that the assessee being a Co-operative society governed by the provisions of the Karnataka Co-operative Societies Act, 1959 and in accordance with the statutory requirements, the society is mandated to complete its statutory audit by 31st August of each year. Further, the Annual General Meeting (AGM), where audited accounts are approved and directions are taken from members, could be held only up to 25th September. In the present case, the society could finalize its audited accounts only by 31.08.2025, and subsequently placed the same before the AGM held in September, 2025. Only thereafter, the society was in a position to obtain approval and authorization from the members to proceed with the filing of appeal before this Tribunal. Consequently, the appeal could be filed only on 15.09.2025, resulting in a marginal delay of 15 days beyond the prescr....
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....;s delay must be explained' does not mean that a pedantic approach should be made. Why not every hour's delay, every second's delay? The doctrine must be applied in a rational, commonsense and pragmatic manner. (4) When substantial justice and technical consideration are pitted against each other, the cause of substantial justice deserves to be preferred, for the other side cannot claim to have vested right in injustice being done because of a nondeliberate delay. (5) There is no presumption that delay is occasioned deliberately, or on account of culpable negligence, or on account of mala fides. A litigant does not stand to benefit by resorting to delay. In fact, he runs a serious risk. (6) It must be grasped that the judiciary is respected not on account of its power to legalise injustice on technical grounds but because it is capable of removing injustice and is expected to do so. 6.2 When substantial justice and technical consideration are pitted against each other, the cause of substantial justice deserves to be preferred, for the other side cannot claim to have vested right for injustice being done because of nondeliberate delay. There....
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....s to be condoned and accordingly, we condone the delay and admit the appeal for adjudication. 7. Now the brief facts of the case are that the assessee is a primary Agricultural credit co-operative society registered under the provisions of the Karnataka Co-operative Societies Act, 1959. The assessee society is engaged in the activities of carrying on the business of providing credit facilities to its members only. The assessee society filed its return of income for the AY 2017-18 declaring a loss of Rs. 3,58,132/-. Thereafter, the case of the assessee was selected for scrutiny through CASS & accordingly the notices u/s 143(2) as well as notice u/s 142(1) of the Act were issued calling for the details. The assessee had filed its submissions through e-filing portal on various dates. 7.1 During the course of the assessment proceedings, the AO observed that the assessee had made total cash deposits of Rs. 46,77,000/- in its bank accounts during the demonetization period i.e. from 09/11/2016 to 31/12/2016 in Rs. 1,000/- and Rs. 500/- notes i.e. specified bank notes (SBNs). The AO noted that the cash balance as on 08/11/2016 was only Rs. 8,55,587/- and therefore, in the opinion of ....
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....sment order passed u/s. 143(3) of the Act dated 20/12/2019, the assessee preferred an appeal before the ld.CIT(A)/NFAC. 9. The ld.CIT(A)/NFAC dismissed the appeal of the assessee as the assessee neither filed any details nor availed any opportunity despite as many as 05 notices were issued by the ld.CIT(A)/NFAC. Even otherwise on merits of the case also the ld.CIT(A)/NFAC did not see any reasons to differ with the findings of the AO as no attempt had been made by the assessee to discharge its onus. 10. Again aggrieved by the order of the ld.CIT(A)/NFAC dated 04/06/2025, the assessee has filed the present appeal before this Tribunal. 11. Before us, the ld. A.R. of the assessee vehemently submitted that the assessee is a primary agricultural credit co-operative society providing credit facilities only to its members. Further, ld. A.R. of the assessee submitted that during the course of assessment proceeding, the assessee contended that the entire cash deposits in SBNs were made out of the receipts of cash from the members of the society which were mainly towards the recovery of crop loans and M.T. Tractor loans. However, the AO merely by stating that "the demonetized currenc....
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....tegorically observed in the assessment order that the assessee had deposited cash in its bank accounts which are part of its books of account. Thus, in our considered opinion the assessee had also furnished the complete and satisfactory explanations regarding the nature and sources of cash deposits into the bank account. 13.1 In our considered view the banks where the money were deposited have also accepted the same as valid tender by giving full credit to the assessee. We could not understand merely because the assessee had accepted the SBNs after demonetization, why these cash received from the members towards recovery of crop loans & Tractor loans cannot be treated as part of Gross Receipts declared by the assessee especially when the said cash were undisputedly deposited into the bank accounts & accepted by the bank. Admittedly the Specified Bank Notes (cessation of liabilities) Act, 2017 defines "appointed day" vide Section 2(1)(a). As per Section 2(1)(a), "appointed day" means the 31st day December, 2016. Further, Section 5 of the Specified Bank Notes (cessation of liabilities) Act, 2017 also deals with prohibition on holding, transferring or receiving Specified Bank Notes....
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....ction as claimed by the assessee u/s 80P of the Act in accordance with law. It is ordered accordingly. 14. In the result, the appeal filed by the assessee is allowed. Order pronounced in the open court on 10th Aug, 2026. ============= Document 1Grounds of Appeal 10 Grounds of Appeal Tax effect relating to each Ground of appeal 1. That the learned Commissioner of Income Tax ('Appeals') ['CIT(A)'] - National Faceless Appeal Centre has . erred on facts and circumstances of the case and in law so far as the first appellate order passed by him / her is prejudicial to the interest of the Appellant. General Ground 2. The Ld. CIT(A) erred in law and on facts in passing the impugned order ex-parte without affording proper and reasonable opportunity of being heard to the appellant. The Ld. CIT(A) grossly erred in issuing notices only through e-mail, despite the fact that in Form No. 35 filed by the appellant, it was clearly mentioned that notices should not be sent through e-mail ID. The action of the Ld. CIT(A) in sending notices through e-mail alone, contrary to the disclosure made in Form No. 35, is against the principles of natural justice and has resu....
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....s further respectfully submitted that in Form No. 35, the society had clearly mentioned that notices may not be served through e-mail ID. Despite this, the Ld. CIT(A) proceeded to therefore, had no effective opportunity of being heard. 3. Absence of Malafide: The delay in filing the present appeal is purely on account of statutory compliance requirements under the Co-operative Societies Act, and not due to any deliberate or co-operemellant. The appellant has the utmost respect for the pcome.tax law and authorities, and there is no attempt whatsoever to mislead or gain any undue advantage by late filing. 4. No Prejudice to Revenue: The condonation of this short delay will not cause any prejudice to the Revenue. On the contrary, substan technical grounds of limitation. Prayer In view of the above facts and circumstances, it is most humbly prayed that the Hon'ble ribunal may kindly be pleased to condone the delay in filing the appe The appellant shall remain ever obliged. Place: Haveri Date: 15-09-2025 D.No. 23-4- 1995 Pú Signature: Kot. a . well BOX . Name: Nagangoud Ramangoud Patil Designation: President सतà¥à¤¯à¤....