Appellate Limitation Commences from Date of Service, Not Order Date: ITAT Bangalore Remands ₹87.28 Lakh Addition Matter
The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) recently delivered a significant ruling regarding the computation of the limitation period for filing statutory appeals. In the matter of Chelairu Halu Utpadakara Sahakari Sangha Niyamitha Vs ITO (ITA 758/Bang/2026), the tribunal established that the time limit for filing an appeal must be calculated from the actual date the assessment order is served upon the assessee, rather than the date printed on the face of the order.
This decision, pronounced on 28 August 2026, overturns the initial dismissal by the Commissioner of Income Tax (Appeals) [CIT(A)], who had rejected the appeal in limine by assuming the order date and service date were identical. Recognizing procedural lapses at the appellate level and the assessee's prior non-compliance during assessment, the ITAT restored the entire case to the Assessing Officer (AO) for a fresh, merit-based evaluation.
Factual Background of the Dispute
The assessee in this dispute is a rural co-operative milk society operating under the regulatory framework of the Karnataka Co-operative Societies Act. For the Assessment Year 2018-19, the assessee did not file its original return of income within the standard statutory deadlines.
Subsequently, the Revenue department received specific financial intelligence indicating substantial cash movements in the assessee's bank accounts. As per the reported information, the assessee had deposited ₹61,82,000 in one specific bank account and an additional ₹25,46,000 in a second account, resulting in cumulative cash deposits of ₹87,28,000. Furthermore, the records indicated an interest income of ₹3,539 during the same financial period.