Tamil Nadu State Apex Fisheries Co-operative Federation Ltd. Vs. The Income Tax Officer, Non Corporate Ward-19(1), Chennai

Parties Involved

Facts Summary

The assessee, Tamil Nadu State Apex Fisheries Co-operative Federation Ltd., is a statutory federation established under the Tamil Nadu Co-operative Societies Act, 1983, acting as the Apex body for fishermen cooperatives across the State. The Assessing Officer (AO) noticed that the assessee had deposited a large sum of cash (Rs. 23,10,06,724/-) in the bank account during the year under consideration. Since the assessee did not file the return of income, the AO reopened the assessment by issuing a notice under section 148 of the Income Tax Act, 1961. The assessee argued that it had inadvertently applied for PAN under the status of a firm and was allotted PAN: AAEFT 7946C. After realizing the mistake, the assessee applied for a fresh PAN under the correct status of AOP/Cooperative Society and was allotted PAN: AAGAT 7588M. The assessee claimed that the reopening was done under the incorrect PAN and that it had been regularly filing returns using the correct PAN. The AO did not accept these submissions and treated the cash deposit as unexplained money under section 69A of the Act. Aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (CIT(A)), which was dismissed in limine due to delay in filing without condoning the delay.…

Legal Issues

• 1. Whether the delay in filing the appeal before the CIT(A) should be condoned?
• 2. Whether the reassessment proceedings were initiated under the wrong PAN?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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