THE NIRMAL UJJWAL CREDIT CO-OPERATIVE SOCIETY LIMITED,NAGPUR vs. DCIT/ACIT CIRCLE-4, NAGPUR

On hearing both the sides, we find that assessee’s appeal was dismissed by the NFAC in limine without condoning the delay of 138 days. Learned counsel for the assessee has submitted that the delay in filing the appeal before the NFAC was that assessee is totally dependent on the services of Tax Consultant as the Office Bearers of the assessee were not well conversant with the procedure including handling digital communication. Ld.DR, however, submitted that the reasons cited for delay are not sufficient and the NFAC exercised its powers quite reasonably.

At the outset, it is pertinent to observe that in this matter, the department sought adjournment on the basis that assessee has raised ground No.6 by which the assumption of jurisdiction has been challenged. However, learned counsel for the assessee has submitted that at this stage, the said ground is not being pressed and further submitted that assessee’s appeal has not been considered on merits. 2

We are of the considered view that when an assessee especially status of cooperative society, is operating its functions, it has to be dependent on various persons including Consultants, who take care of the litigation and if a plea is raised before the Ld. Tax Authorities that due to any mishandling of the matter by the employee or Consultant, there was a delay in filing the appeal, the same should be considered for substantial justice and to give an opportunity to the assessee to contest the issues on merits. Various decisions relied on by the NFAC are not applicable to the facts of the present case.

In the light of the aforesaid circumstances, the appeal of the assessee is allowed for statistical purposes. The matter is restored to the file of the learned CIT(A) for de novo adjudication on merits as well as on legal issues, after granting the assessee an adequate opportunity of hearing and passing a fresh order in accordance with law.

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