SEVABHAVI BRAMNAN NAGARI SAHAKARI PATSANSTHA MARYADIT RAVTALE CHIPLU,RATNAGIRI vs. INCOME TAX OFFICER, RATNAGIRI

There is a delay of 272 days in filing of this appeal before the Tribunal, for which the assessee has filed an application seeking condonation of the said delay along with an affidavit, explaining therein the reasons for such delay. After hearing both the sides, we are of the view that the delay is attributable to the sufficient cause. We, therefore, in light of the decisions of the Hon'ble Supreme Court in the case of Collector, Land Acquisition vs. Mst. Katiji & Ors. (1987) 167 ITR 471 (SC) and in the case of Inder Singh vs. The State of Madhya Pradesh reported in 2025 Live Law (SC) 339, condone the said delay and proceed to decide the appeal.

Briefly stated, the facts of the case are that the assessee is a co- operative society, registered under the Maharashtra State Co-operative Societies Act, 1960. It is engaged in the business of accepting deposits from members and providing credit facilities to the members. For the relevant AY. 2017-18, the assessee had not filed its original return of income. The assessment was completed by the Ld.AO u/s. 144 of the Act on 29-12-2019 at an assessed income of Rs. 39,41,000/-. During the course of assessment proceedings, the Ld.AO observed that the assessee had gross receipt/turnover of Rs. 2,56,00,000/- from business, but she has not filed her audited books of account as per the provisions of section 44AB of the Act. He, therefore, initiated penalty proceedings for the said default u/s. 271B of the Act. The various notices issued by the Ld.AO during the penalty proceedings remained un-complied by the assessee. The Ld.AO, therefore, proceeded to complete the penalty proceedings thereby levying penalty of Rs. 1,28,000/- (being minimum penalty @0.5% of the total sales/turnover/gross receipts i.e. Rs. 2,56,00,000/- in the instant case) u/s. 271B of the Act, vide his order dt. 03-02-2022.

Aggrieved, the assessee filed appeal before the Ld.CIT(A)/NFAC, but with a delay of about one year six months and twenty one days. The reasons cited by the assessee for such delay was not found to be constituting ‘sufficient cause’ for not presenting the appeal within the prescribed time limit by the assessee. He, therefore, dismissed the appeal of the assessee on account of non-condonation of delay in filing of the appeal.

Dissatisfied, the assessee is in appeal before the Tribunal raising the following Grounds of Appeal:

The Ld.AR submitted that the delay in filing of the appeal was not deliberate, but occurred due to certain unavoidable circumstances beyond the control of the assessee. He submitted that the erstwhile Manager of the assessee had indulged in some fraud and the management had to face a lot of issues and enquiries from the Government Departments at the relevant time. Further, the Directors of the society were fully occupied with the court proceedings lodged against the Manager and some of the other Directors of the society. He submitted an affidavit of the Secretary of the society in support thereof. The Ld.AR further submitted that the Co- ordinate Bench of the Tribunal in the quantum appeal of the assessee for the same AY.2017-18 (ITA No. 2784/PUN/2025) under the similar set of facts has condoned the delay in filing of the appeal before the Ld.CIT(A)/NFAC and remitted the matter back to the file of the Ld.CIT(A)/NFAC for denovo adjudication on merits. He submitted that the assessee has a strong case on merits as the assessee’s gross receipts during the relevant AY. 2017-18 being less than the threshold of Rs.1,00,00,000/- the assessee is not required to get her books of account audited under the provisions of section 44AB of the Act. He, therefore, urged that the delay in filing of the appeal be condoned and the assessee may be granted an opportunity to substantiate her claim before the Ld.CIT(A)/NFAC.

We have heard the Ld. Representatives of the Parties and perused the material available on record. We find that the Ld.AO has completed the penalty proceedings ex-parte qua the assessee and levied a penalty of Rs.1,28,000/- u/s. 271B of the Act on account of assessee’s failure to submit audited books of account as per the provisions of section 44AB of the Act. We find that the Ld.CIT(A)/NFAC has dismissed the appeal of the assessee in limine without dwelling into the merits of the case on the ground of non-condonation of delay in filing of the appeal. The Ld.AR has submitted that the delay in filing of the appeal before the Ld.CIT(A)/NFAC resulted due to the reasons stated above. Without prejudice, it is the submission of the Ld. Counsel for the assessee that the assessee is not required to get her books of account audited as the gross receipts of the assessee for the relevant AY. under consideration is below the threshold limit of Rs. 1 crore as required u/s. 44AB of the Act. We further find that the Co-ordinate Bench of the Tribunal in the quantum appeal of the assessee for the same AY. 2017-18 has condoned the delay and remitted the matter back to the file of the Ld.CIT(A)/NFAC adjudication afresh on merits. Under these circumstances and considering the totality of the facts of the case, we deem it fit and proper, in the interest of justice, to set aside the order of the Ld.CIT(A)/NFAC with a direction to condone the delay in filing of the appeal and decide issue afresh on merit and as per fact and law after giving due opportunity of being heard to the parties. The assessee is also hereby directed to make its submissions before the Ld.CIT(A)/NFAC on the appointed date without seeking any adjournment under any pretext unless required for the sufficient cause, failing which the Ld.CIT(A)/NFAC shall be at liberty to pass appropriate order as per

In the result, the appeal filed by the assessee is treated as allowed for statistical purposes.