AJINKYATARA SAHKARI PATSANSTHA MARYADIT,KOPER KHAIRANE vs. INCOME TAX OFFICER, WARD 28(1)(1), VASHI

Ajinkyatara Sahkari Patsanstha Maryadit 2. We heard the rival submissions, considered the documents available on the record. The assessee is a co-operative society and registered under Maharashtra Co-operative Societies’ Act, 1960 and classified as ‘Resources Society’ u/s 12 of the Maharashtra Co-operative Societies’ Act, 1960. The assessee is providing credit facility to its members and also earned interest from the investment in co-operative banks. During the impugned assessment year, the assessee declared total income at Rs.6,71,670/- after claiming deduction of Rs.45,28,603/- u/ 80P of the Act. As a whole, the assessee’s income of Rs.52,00,274/- is derived from providing credit facility to its members and interest and dividend received from investment in co- operative bank. The Ld.AO, during processing of return rejected the claim u/s 80P of the Act and increased the total income to Rs.45,38,603/-. Aggrieved assessee filed an appeal before the Ld. CIT(A) with a delay of 1685 delays. The delay was duly explained before the Ld. CIT(A). But the Ld.CIT(A) rejected the appeal on the ground of limitation but not on merit. Being aggrieved, assessee filed an appeal before us.

The Ld.AR stated that the return was processed u/s 143(1) on dated 15/06/2020 and due to Covid Pandemic, the appeal is filing in delay before the Ld. CIT(A). The Ld. AR argued that part of the delay is due to the COVID Pandemic situation which is covered by the order of Hon’ble Supreme Court in the case of Cognizance for Extension of Limitation reported in (2022) 441 ITR 722 (SC) dated 10th January 2022. Further, the assessee has delayed in filing appeal and the reasons were duly explained before the CIT(A). Considering this, the Ld.AR prayed for setting aside the matter before the Ld. CIT(A) and prayed for condoning the delay in filing the appeal before the Ld.CIT(A).

In our considered view, we find that the asessee’s return was processed u/s 143(1) of the Act dated 15/06/2020 and the appeal was filed on dated 25/02/2025. We find that the assessee has filed the appeal with a delay of 1685 days before the Ld. CIT(A). The delay in filing the appeal was duly explained by the assessee. The Part of the delay is covered by the order of Hon’ble Supreme Court in the case of Cognizance for Extension of Limitation reported in (2022) 441 ITR 722 (SC) dated 10th January 2022. The Ld. CIT(A) rejected the appeal on the technical ground of absence of sufficient cause for condonation of delay. Respectful reliance was placed on the judgment of the Hon’ble Gujarat High Court in the case of Rajendrakumar Maneklal Shah (HUF) vs CIT 213 ITR 715, which supports the proposition that procedural delays, when reasonably explained, should not defeat substantive justice. We restore the appeal to the file of the Ld. CIT(A) for denovo adjudication. Accordingly, we direct the assessee to submit the Affidavit before the Ld. CIT(A) by explaining the delay in filing appeal before 1st appellate authority. The Ld. CIT(A) is directed to reconsider the delay in lenient approach and to adjudicate the matter afresh by passing a reasoned and speaking order after affording an opportunity of hearing to the assessee. Needless to say, the assessee shall be granted a reasonable opportunity of being heard in the remanded proceedings. Simultaneously, the assessee is expected to act diligently and extend full cooperation to ensure expeditious disposal of the appeal.