LINTAS EMPLOYEES RECREATION TRUST ,MUMBAI vs. ITO WARD 25(2)(1), MUMBAI

4. By way of present appeal the Assessee has challenged the order passed by the learned CIT(A), dated 13/03/2025 whereby the appeal preferred by the Assessee against the Intimation Order,

“7.1. The reason for condonation of delay is as under: (1) MR. DINESH KABRA, aged 74 years, is the Administrator, and is in charge of the accounts and finance of the Assessee Trust. He has been looking after all the tax litigation matters of the Assessee Trust. (ii) Mr. Dinesh Kabra received the Intimation Order u/s. 143(1) dated 28.12.2022, for AY. 2021-22. (iii) Since he was having serious health issues due to covid along with pneumonia and was quite unwell, he was attending to matters of the Assessee Trust only once a week and on urgent matters only. He was advised by the Doctors to take rest due to his ill health. (iv) On becoming aware of the impugned Intimation u/s. 143(1) being passed, several efforts were being made to file rectification application u/s. 154 either online on the portal or in physical mode. (v) However, since the Income Tax Portal was completely upgraded and revamped was under construction for a long time, it seems that there was not and there is no tab to file rectification application u/s.

6. However, the CIT(A) declined to condone the delay and dismissed the appeal as being barred by limitation holding as under: “7.2 The submissions of the appellant are considered but found to be not acceptable for the reason that the appellant should have consulted the accountant first after getting the order u/s 143(1) or u/s 154 of the I.T. Act and appeal should have been filed first. Being a responsible tax payer assessee should be more careful regarding filing the appeal. In this case, the date of order u/s 143(1) is 28.12.2022 and the due date of filing the appeal was 27.01.2023 instead of 30 days of filing of appeal, the appellant has filed on 21.02.2024. Thus there is a gap of filing of appeal of 390 days without substantiating the delay for filing the appeal. 7.3 Even the appellant has paid the appeal fee of Rs 1000/- on 16.02.2024 beyond the due date of filing of appeal which also proved that the fee payment has not been made before due date of filing of the appeal i.e. on 27.01.2023. 7.4 In absence of good and justifiable reasons for delay in filing the appeal, the appeal”

7. We find that the CIT(A) did not take into consideration the reasons furnished by the Assessee for delay in filing the present appeal and declined to condone the delay by observing that the Assessee should have been more careful regarding filing the appeal since the CIT(A) was of the view that the Assessee should have immediately consulted the tax professional on receipt of Intimation, dated 28/11/2022 issued under Section 143(1) of the Act.

8. We note that before the CIT(A) the Assessee had cited ill health of administrator, who was about 74 years of age and was facing health issue on account of covid and pneumonia, as the reason for delay in filing the appeal. We find that in the case of M/s. Lintas Employees Hobbies and Craft Trust Vs. Income Tax Officer Ward 22(2)(1), the assessee being an associate trust set up for welfare of employees, the Mumbai Bench of the Tribunal had accepted identical reasons/explanation as genuine/bonafide while condoning the delay of 341 days in filing appeal vide order, dated 23/05/2025 passed in Assessment Year 2021-2022 Assessment Year 2019-2020 and 2020-2021]. The relevant extract of the aforesaid decision of the Tribunal reads as under: “3. Coming to we observe that the Assessing Officer (AO)/CPC vide intimation/order u/s 143(1) of the Act dated 01.05.2020 assessed the total income of the Assessee at Rs.20,64,260/- and made the addition of Rs.12,50,214/- in total (Rs.6,74,181/- being dividend from mutual funds which was claimed by the Assessee as exempt u/s 10(35) of the Act + Rs.5,76,033/- interest from tax free bonds which was claimed as exempt u/s 10(15) of the Act.

4. The Assessee, being aggrieved, challenged the said additions before the Ld. Addl./Joint Commissioner by filing first appeal, however, with the delay of 979 days in filing of the same. As observed above, the CPC/AO has passed the order/intimation on dated 01.05.2020 and that time Covid period has already been started and therefore considering the peculiar facts and circumstances the Hon'ble Apex Court, in suo-moto case in writ petition No.3 of 2020 & ors. decided on January 10, 2022, exempted the period from 15.03.2020 till 28.02.2022 and therefore, if we exclude the excluded period for filling of appeal, revision etc. as directed by the Hon'ble Apex Court and filing of appeal on dated 04.02.2023, the exact delay would come to 341 days. 4.1. Admittedly, the Assessee has as many as 12 trusts for welfare of its employees and in all the cases pertaining to A.Y. 2019-20 & 2020-21 to all the trusts the assessment/intimation orders were passed u/s 143(1) of the Act on dated 01.05.2020. And therefore the Assessee has claimed, as the time when the intimation/order was passed by the CPC on dated 01.05.2020, Covid period was going on and therefore only one manager namely Mr. Dinesh Kabra was available in office and the office for staff was closed entirely and thus such manager could not see the mails that arrived from the Department. However, once Mr. Kabra resumed office after a long time, he was able to see the mails about receipt of orders and consequently all appeals of 12 trusts were filed at a time around February 2023 before the CIT(A), along with condonation of delay varied from case to case. In all other cases, the Ld. CIT(A) has allowed the condonation of delay except in the instant case. 4.2 The Assessee, before this Court, has also submitted duly sworn affidavit dated 19.01.2023 of one of the trustees namely Mr. Assessment Year 2021-2022 Shahrook Munsiff, wherein the reasons for delay are demonstrated as under: “1. I say that I am the Trustee of LINTAS EMPLOYEES HOBBIES AND CRAFTS TRUST, (hereinafter referred to as "the Assessee Trust").

5. I say that I was unaware of the Intimation us. 143(1) being passed. When it was brought to my notice, I saw that there was a demand raised in the Intimation u/s. 143(1), against which we made several efforts to file rectification application u/s. 154 either online on the portal or in physical mode.

6. On 12-05-2020, an employee working from the accounts team of the Assessee Trust (who was working from home during the Covid Lock Down), filed an online response to the outstanding demand, on the I.Tax Portal and intimated about the mistake apparent on record of the Intimation u/s. 143(1). However till date no response has been received from the 1. Tax Department on this issue till date.

154. This caused immense delay in filing the appeal.

11. However, since the Income tax website was under revamp/reconstruction, the appeal could not be filed on time due to various technical problems. Till date there are problems on the Income Tax Portal.

5. On the contrary, the Ld. D.R. refuted the claim of the Assessee.

10. Keeping in view of the above decisions of the Tribunal, we are of the view that the order passed by the CIT(A) rejecting the reasons given by the Assessee for delay in filing the appeal cannot be sustained. Accordingly, the order passed by the Learned CIT(A) is set aside. Delay of 390 days in filing the appeal is condoned. The CIT(A) is directed to adjudicate the ground raised by the Assessee in appeal before CIT(A) on merits. Thus, Ground No.1 raised by the Assessee is allowed. While Ground No. 2 to 5 raised by the Assessee pertaining to merits are disposed off as having been rendered infructuous in view of the directions given to CIT(A) to adjudicate the appeal on merits.

Order pronounced on 31.07.2025.