ITAT Bangalore Condoned Delay, Restores ₹1.36 Crore Agricultural Income Dispute for Fresh Examination

The Bangalore SMC Bench of the Income Tax Appellate Tribunal has condoned a 108-day delay in filing appeal and set aside the order of the National Faceless Appeal Centre which had refused to admit the assessee’s appeal on the ground of limitation in the case of Primary Co-operative Agricultural and Rural Development Bank Limited for Assessment Year 2018–19. The Bench comprising Prashant Maharishi and Keshav Dubey observed that the Revenue failed to establish proper service of the appellate order on the email address furnished by the assessee, thereby constituting sufficient cause for delay. The Tribunal noted that the CIT(A) had mechanically rejected the appeal without meaningfully examining the explanation offered in Form 35, where the cooperative bank had pleaded lack of technical awareness and non-receipt of orders due to its rural background. Holding that such reasons deserved judicial consideration, the ITAT found the non-admission of appeal to be unsustainable.

Ex Parte Assessment on Agricultural Income Sent Back to Assessing Officer

On merits, the Tribunal took note that the assessment had been completed ex parte, with the Assessing Officer making an addition of ₹1.36 crore by treating the declared agricultural income as non-genuine due to alleged non-compliance. Emphasising principles of natural justice, the ITAT restored the entire matter to the Assessing Officer for fresh verification. The assessee has been directed to furnish land records, crop details, ownership particulars and supporting evidence within 120 days to substantiate the agricultural income claim. The Assessing Officer has been instructed to re-adjudicate the issue in accordance with law after granting due opportunity of hearing.

Accordingly, the appeal was allowed for statistical purposes, reaffirming that procedural lapses should not defeat substantive justice, particularly where adequate cause for delay is demonstrated.