BHAWANIPATNA CENTRAL CO-OPERATIVE BANK LTD,MAHAVIRPADA, BHAWANIPATNA vs ASSTT. CIT,RANGE-1, SAMBALPUR

Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL,

Before: MANISH AGARWAL

For Appellant: Shri Pradyumna Kumar Sahoo, Adv

For Respondent: Shri Sanjay Kumar, CIT, Shri Sanjay Kumar, CIT DR

Hearing: 11/0Pronounced: 11/0

Per Bench

This is an appeal filed by the assessee against the order of the ld This is an appeal filed by the assessee against the order of the ld This is an appeal filed by the assessee against the order of the ld CIT(A), NFAC, Delhi dated A), NFAC, Delhi dated 18.9.2023 in Appeal No. in Appeal No.NFAC/2017- 18/10190129 against the levy of penalty u/s.270A of the Act against the levy of penalty u/s.270A of the Act for the assessment year assessment year 2018-19.

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Shri Pradyumna Kumar Sahoo, ld AR appeared for the assessee and Shri Sanjay Kumar, Ld CIT DR appeared for the revenue.

It was submitted by ld AR that the appeal of the assessee has been dismissed by the ld CIT(A) on account of non-condonation of delay. Ld AR drew our attention to para 15 of the Form No.35, wherein, the assessee has given the following reasons for the delay:

“In the peculiar circumstances of the case and more particularly on adopting the cost cutting measure, no specific person was entrusted with the day to day income tax work as it happens in other organizations and institutions. Therefore, mostly the assessee bank is depending upon its consultant, advocate and chartered accountant engaged for the purposes. Your kind attention is drawn to the following events which are one of the reasonable cause for the delay in filing of the 1st appeal. Your honour may appreciate that one of the Dy.General Manager who was working with the assessee bank namely Shri Mahendra Kumar Behera, retired on superannuation on 30.4.2019. In his place, one Mr S.A.Sami, AgM remains in charge till 18.12.2019. he was appointed in charge of CEO from 19.12.2019 to 30.9.2021 and retired on superannuation. On his superannuation, one Mr S.K.Pradhan took over charge of CEO and remains as CEO from 4.10.2021 to 31`.5.2023. During this period, Mr D.K.Praharaj, Manager was in charge as FA & Accounts, since 20.12.2019 to 31.3.2023, who is also retired superannuation on 31.3.2023. The dealing assistant namely Mr Uma Shankar Barik, who was looking after the accounts retired on superannuation on 31.1.2023. In the like manner, the Superintendent Smt Anjali Kumari, Asst. Manager, transferred, who was continuing in the Wing from 4.7.2016 was transferred to Junagarh Branch from 12.2.2023. On her transfer , Smt. Madhiri Tirki posted as Asst. Manager to FA on 14.2.2023. While the matter stood thus, Smt. Pranati Panda, Asst. Manager, working in the F.A.Department was transferred from Finance and Accounts Section on 26.5.2023 to work in other department. As against, Mr Biswa Ranjan Sahu, the present Manager posted to work in the FA & Account, since then i.e. 26.5.2023 though the CEO was retired on 31.5.2023. However, Government posted Sri Pratik Chandra Jalli, as CEO and jointed on 5.6.2023. It may be appreciated that that the assessee came to know about such a huge P a g e 2 | 5

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demand only while served with a notice for payment of outstanding demand relating to the assessment year 2014-15 to 2018-19 vide No.ITBA/RCV/F/17/2023-24/1054146553 dated 5.7.2023 issued by the DCIT/ACIT, Circle-1(10, Sambalpur. The aforesaid notice was received by the assessee by speed post on dated 10.7.2023. Knowing about the notice as above, immediately, the assessee enquired about such demand and searched the portal of the demand, when he could be able to know that the order u/s.147 read with section 144 and 144B of the i.T.Act 1961 dated 22.5.2023 have been passed on the same day. Immediately, enquiring about the details, the new incumbent who was taking over the charge of complying to the income tax notices, approached an Advocate at Bhubaneswar and engaged him for the purpose to file the appeal. As requisitioned by him, certain details and documents were provided in order to enable the advocate to draft the statement of facts as well as grounds of appeal. On preparing the appeal memo and statement of facts and grounds of appeal, the appeal was prepared and filed on dated 2.11.2023. it may be noted that however, on the advice of the Advocate, the payment of appeal fees were repaid electronically on dated 7.10.2023 in the instant case, there is a merit in the appeal which are as under: “The original order of assessment u/s.143(3) of the Income tax Act, 1961 was passed on 31.12.2019. Subsequently, notice u/s.148 was issued on 30.6.2021. While the matter stood thus, without withdrawing the notice issued earlier and pending proceeding against notice u/s.148 dated 30.6.2021, subsequent proceeding was issued and finally the order u/s.147 read with section 144B of the i.T.Act, 1961 was issued on 22.5.2023, which is the impugned order before your honour seeking condonation of delay. If the present appeal is not admitted for disposal of the appeal on merit and, therefore the delay like limitation cannot be a ground only on technicality. Thereby, substantial justice is thrown out over a technical justice. That for these reasons and any other reason that may be adduced at the time of hearing, it is humbly prayed that the delay in filing the appeal by 115 days may kindly be condoned and appeal be admitted for hearing in the substantial interest of justice and equity.”

It was submitted by ld AR that the ld CIT(A) has not considered these reasons also and has dismissed the appeal of the assessee in limine.

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It was the prayer that the delay in filing of the appeal before the ld CIT(A) may be condoned and the appeal disposed off on merits.

In reply, ld CIT DR submitted that admittedly the explanation given by the assessee in Form No.35 para 15 has not been extracted by the ld CIT(A). It was the submission that it is deemed that the ld CIT(A) has considered the explanation of the assessee and no sufficient cause has been found by the ld CIT(A) in condoning the delay. It was the submission that the order of the ld CIT(A) is liable to be upheld.

We have considered the rival submissions. A perusal of the reasons for the delay, as mentioned by the assessee in Form No.35 para 15, clearly shows that the delay in filing of the appeal before the ld CIT(A) was that the Officer in-charge of the assessee society was superannuated and it was not just one person, there are multiple officers were superannuated. Admittedly, the assessee is a co-operative society. Thus, when the Officer superannuated and new officer takes charge, they would be totally new to go through the facts. The reasons given by the assessee for the delay are justifiable. This being so, we are of the views that the delay in filing of the appeal before the ld CIT(A) requires to be condoned and we do so. In these circumstances, the issues in this appeal are restored to the file of the ld CIT(A) for adjudication on merits.

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In the result, appeal of the assessee stands partly allowed for statistical purposes.

Order dictated and pronounced in the open court on 11/06/2024.

Sd/- sd/- (Manish Agarwal) (George Mathan) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 11/06/2024 B.K.Parida, SPS (OS) Copy of the Order forwarded to : 1. The Appellant : Bhawanipatna Central Co- operative Bank Ltd., Mahavirpada, Bhawanipatna, Dist: Kalahandi 2. The Respondent: Asst. Commissioner of Income Tax, Range-1, Sambalpur 3. The CIT(A)- NFAC, Delhi 4. Pr.CIT, Sambalpur 5. DR, ITAT, 6. Guard file. //True Copy// By order

Sr.Pvt.secretary ITAT, Cuttack

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BHAWANIPATNA CENTRAL CO-OPERATIVE BANK LTD,MAHAVIRPADA, BHAWANIPATNA vs. ASSTT. CIT,RANGE-1, SAMBALPUR