MATRUMANDIR CO-OP HOUSING SOC LTD,MUMBAI vs. I.T.O WARD 19(2)(2), MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “SMC”, MUMBAI BEFORE SHRI ANIKESH BANERJEE, JUDICIAL MEMBER AND SHRI ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.9490/Mum/2025 (Assessment year: 2015-16)

Matrumandir Co-OP Housing vs ITO Ward 19(2)(2), Mumbai Soc Ltd. Piramal Chambers, Dr SS Rao Marg, Ground Floor, Matrumandir Parel, Mumbai-400012 Co-Op Housing, Grant Road, S.O. Mumbai, Mumbai-400007 PAN: AAAAM1887A APPELLANT RESPONDENT Assessee by : Shri Bharat Kumar, CA Revenue by : Shri Pasale Naganath Bhimrao (Sr. DR) Date of hearing : 20/05/2026 Date of pronouncement : 25/05/2026 O R D E R Per: Anikesh Banerjee (JM): The instant appeal of the assessee filed against the order of the Ld. Commissioner of Income Tax (Appeals)-ADDL/JCIT(A), Varanasi [for brevity the “Ld. CIT(A)”], order passed under section 250 of the Income Tax Act 1961 (for brevity ‘the Act’) for Assessment Year 2015-16, date of order 31.10.2025. The impugned order emanated from the order of the CPC Bengaluru, (for brevity the ‘Ld. AO’) order passed under section 143(1) of the Act date of order 03.03.2016.

2 ITA No.9490/Mum/2025 Matrumandir Co-OP Housing Soc. Ltd. 2. The brief facts of the case are that the assessee is a cooperative society, the assessee filed the return during the impugned assessment year. The return was processed u/sec. 143(1) and the interest earned from the investment in Cooperative Banks was duly disallowed amount to Rs.8,84,337/-. The assessee claimed this deduction u/sec. 80P(2)(d) of the Act during the computation of the income. The aggrieved assessee filed an appeal before the Ld. CIT(A) with a delay for 2547 days. The Ld. CIT(A) rejected the appeal on the ground of limitation. Being aggrieved assessee filed an appeal before us. 3. The Ld. AR contended that the assessee was not aware about fate of the income tax notice and accordingly, the delay was occurred due to the lack of knowledge of the Society Members. The Ld. AR also stated that the Ld. CIT(A) had wrongly computed the delay for 2547 days. The Ld. CIT(A) considered the order of the Hon'ble Supreme Court in case of suo moto writ Petition no. 3 dated 10.01.2022. The Ld. AR considering the relaxation in Covid period had recomputed the delay which comes to 1831 days. The details of calculation is reproduced as below:

3 ITA No.9490/Mum/2025 Matrumandir Co-OP Housing Soc. Ltd. 4. The Ld. AR filed a notarized affidavit duly executed by the Secretary of the assessee society Mr. Vipul Rajendra Padilya executed on 16.05.2026. The relevant part of the affidavit is reproduced as below: “2. The Applicant Society has limited knowledge and understanding of taxation laws and legal procedures and does not possess any professional expertise in such matters.

4 ITA No.9490/Mum/2025 Matrumandir Co-OP Housing Soc. Ltd. 10. Accordingly, the present managing committee resolved to prefer the present appeal before the Hon'ble Commissioner of Income Tax (Appeals). 11.It is respectfully submitted that the delay in filing the present appeal is neither intentional nor deliberate, but has occurred due to bona fide and unavoidable circumstances, and condonation of the same would be in the interest of substantial justice. 12. The Appellant respectfully submits that the delay was caused due to reasonable and bona fide circumstances and not with any intention to evade, disregard, or ignore the statutory obligations prescribed under the Income-tax Act, 1961. 13. The delay is neither deliberate nor intentional. The Appellant respectfully submits that the same has occurred due to bona fide reasons and circumstances beyond its control and not on account of any malafide intention or willful negligence. 14. The Appellant has a strong case on merits, and unless the delay is condoned, the Appellant shall suffer irreparable hardship and prejudice, whereas no prejudice whatsoever would be caused to the Department if the delay is condoned and the appeal is adjudicated on merits. 15. It is a well-settled principle of law that matters should ordinarily be decided on merits, and a liberal and justice-oriented approach ought to be adopted while considering applications for condonation of delay where sufficient cause has been demonstrated. 16. In view of the aforesaid facts and circumstances, the Appellant most humbly prays that the delay in filing the present appeal may kindly be condoned and the appeal may graciously be admitted for adjudication on merits, in the interest of justice.”

5 ITA No.9490/Mum/2025 Matrumandir Co-OP Housing Soc. Ltd. intimation the assessee filed before the Ld. CIT(A) and the Ld. CIT(A) considering this issue found that the appeal was filed with a delay for 2547 days. In the appeal proceeding the Ld. CIT(A) had not considered the order of the Hon'ble Supreme Court in the case of suo moto writ Petition No. 3 dated 10.11.2022 for condoning the delay due to the Covid pandemic. So, after the due recalculation the delay is for 1831 days. We observe that the assessee’s issue is duly covered by the Hon'ble Supreme Court and Coordinate Bench of ITAT Mumbai. But we find that in impugned appellate stage the assessee was unable to submit any evidence in support of his claim as the appeal order was passed in the ground of limitation and the Ld. CIT(A) had not considered the merit of the case. In the interest of natural justice, we are of the considered view that the assessee deserves to be granted one more opportunity to present its case before the Ld. CIT(A). However, the Ld. AR is suo moto offered the cost for delay in filing appeal before the Ld. CIT (A) and accordingly, the Ld. DR has accepted the proposal made by the Ld. AR. Accordingly, we imposed cost of Rs.5000/- upon the assessee which shall be paid on credit of the Income Tax Department under other ‘head’ within one months from the date of receipt of this order. Subject to payment of aforesaid cost, we shall be duly verified by the Ld. CIT(A), all issues are remitted to the file of Ld. CIT(A) for adjudication on merit and the CIT(A) is directed to condone the delay for filing appeal by the assessee. We do not express any opinion on merits of the case to ensure the appeal procedure remains uninfluenced before the Ld. CIT(A). It is important that the assessee is afforded a reasonable opportunity of being heard. Furthermore, the assessee is expected to exercise due diligence in the appeal proceeding to facilitate the expeditious disposal of appeal.

6 ITA No.9490/Mum/2025 Matrumandir Co-OP Housing Soc. Ltd. 7. In the result, the appeal of the assessee bearing ITA No.9490/Mum/2025 is allowed for statistical purpose. Order pronounced in the open court on 25th day of May 2026. Sd/- Sd/- (ARUN KHODPIA) (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, िदनांक/Dated: 25/05/2026 SAUMYA Sr.PS Copy of the Order forwarded to: 1. अपीलाथ�/The Appellant , 2. �ितवादी/ The Respondent. 3. आयकर आयु� CIT 4. िवभागीय �ितिनिध, आय.अपी.अिध., मुंबई/DR, ITAT, Mumbai 5. गाड� फाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar), ITAT, MUMBAI