TaxTMI 
TaxTMI 
2026 (9) TMI 1968
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....t year by the Assessing Officer through the National Faceless Assessment Centre [the Ld. AO]. 2. After filing the stay petitions, the assessee, facing pressing demands, approached the Hon'ble Kerala High Court by way of a writ petition. The Hon'ble High Court directed the ITAT to dispose of the stay petitions within two months. 3. We first take up the appeal in ITA No.849/COCH/2026 for AY 2018-19 wherein the grounds raised by the assessee are as follows:- "A. The assessment order No ITBA/AST/S/144/2021-22/ 1032574055(1) dated 21/04/2021 passed by the Assessing Officer under Section 144 r/w 144B of the Income Tax Act 1961 and its confirmation by the CIT(A), by Order in appeal No NFAC/2017-18/10573169 dated 05/05/2026 by dismissing the appeal solely on the ground of delay in filing the appeal for A.Y. 2018-19, are arbitrary, illegal, and contrary to the facts of the case. B. The CIT(A) failed consider the fact that the appellant is a Primary Agricultural Co-operative Society Registered under the Kerala Co-operative Societies Act 1969 and is eligible for the deduction of entire income u/s 80P (2) (a)(i) of the Income Tax Act. Instead of deciding the issue on me....
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.... depositors' details and explanation before the appellate authority, the learned CIT(A) was duty-bound to consider the same, call for a remand report if necessary, and adjudicate the issue in accordance with law. The summary dismissal of the appeal without examining the explanation and supporting documents amounts to a violation of the principles of natural justice. K. The CIT(A) erred in not considering that the appellant had disclosed all primary facts in its return of income and that there was neither concealment nor furnishing of inaccurate particulars for invoking CASS assessment provisions. L. The CIT(A) erred in law and on facts in dismissing the appeal solely on the ground of delay without affording the Appellant an effective opportunity to have the merits of the case adjudicated, thereby violating the principles of natural justice. The impugned order has resulted in denial of a fair healing and has caused serious prejudice to the Appellant, rendering the order arbitrary and unsustainable in law. M. The Appellant craves leave to add, alter, amend or withdraw any of the above grounds at the time of hearing. N. The grounds raised before....
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....were not complied with by the assessee. The AO was of the view that the findings of the AO for AY 2017-18 hold water for the instant assessment year also and hence rejected the assessee's claim of deduction u/s. 80P(2)(a)(i) of the Act. Penalty proceedings u/s. 270A of the Act were initiated for misreporting of income. 7. With regard to the cash deposits in an account other than the Current Account in A/c No. xxxxxx 0009 of Rs. 44,70,000 in The Ernakulam District Co-op. Bank Ltd., in the absence of any details regarding the source of such cash deposits or documentary evidence to substantiate them, the entire cash deposit was treated as unexplained money u/s. 69A of the Act and added to the total income as per the provisions of section 69A r.w.s. 115BBE of the Act. Penalty proceedings u/s. 271AAC of the Act were initiated. 8. Aggrieved by the assessment order determining total income at Rs. 61,08,490, the assessee filed an appeal before the ld. CIT(A) with an application for condonation of a delay of 1762 days in filing the appeal. In the affidavit, the assessee stated that the delay was due to its status as a small Primary Agricultural Credit Society in the Cochin coastal reg....
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....ce, this reason is not found bonafide to condone the delay. As regards the technical difficulties, the appellant has stated that they were not able to upload the appeal. The appellant has uploaded a grievance dated 01.12.2025. In response the appellant was advised to follow the steps as per the e-filing portal. Another grievance was filed by the appellant on 25.10.2025 which was related to updation of Aadhar and not related to any difficulty in filing the appeal. Moreover, these grievances were also filed only on 25.10.2025 and thereafter i.e. more than 4 and a half years from the receipt of impugned assessment order. This itself, is a highly inordinate delay in filing the appeal. Thus, the appellant has not been able to explain the inordinate delay of 1762 days in filing the appeal with any reasonable cause. Therefore, the delay is not condoned and the appeal is not admitted." 10. The assessee is in appeal against the appellate order passed by the ld. CIT(A). Meanwhile, the assessee was pressed with the demand and therefore approached the honourable High Court of Kerala in an appeal, which passed an order on 27 July 2026 in writ petition No. 25,504 of 2026, wherein the honourab....
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.... (a) (I) of the Act of Rs. 1, 638, 494. The learned assessing officer reached the conclusion that the assessee cooperative society, classified as a primary agricultural credit society, is eligible for deduction under section 80 P only in respect of income attributable to its activities, such as providing financial accommodation only to its members and that too for agricultural purposes and purposes connected with agricultural activities. However, what income is attributable to the business of the assessee and whether any income is not attributable to the business of the assessee were decided without examining the details. The learned assessing officer did not consider even the annual accounts filed by the assessee, which are admittedly available in the return filed by the assessee. Thus, the denial of the deduction was without examining and appreciating the annual accounts of the assessee. It cannot be said that the assessing officer was unaware of the activities of the assessee, as at page No. five of the assessment order he has extracted certain figures which necessarily have to be from the annual accounts of the assessee, which are part of the lawn abstract extracted from the as....