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Facts
The assessee, an Employees Co-op Thrift and Credit Society, filed its return belatedly for AY 2019-20, admitting 'Nil' income after claiming deduction u/s.80P. The CPC denied the deduction due to late filing. The FAA confirmed the AO's order. The assessee appealed to the Tribunal, citing a delay of 260 days in filing the appeal, due to lack of awareness of faceless proceedings and technical unfamiliarity.
Held
The Tribunal found sufficient reason for the delay in filing the appeal and condoned it. However, since the assessee's application for condonation of delay in filing the return of income u/s.119(2)(b) was pending before the Competent Authority, the Tribunal restored the case to the AO to await the Competent Authority's decision.
Key Issues
Whether the delay in filing the appeal should be condoned, and if the AO's order should be set aside pending a decision on the condonation of delay for the return filing.
Sections Cited
250, 80P, 139(1), 143(1), 119(2)(b)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE KAND SHRI S.R. RAGHUNATHA
आदेश /O R D E R PER GEORGE GEORGE K, VICE PRESIDENT:
This appeal at the instance of the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 20.03.2024, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2019-20.
2. There is a delay of 260 days in filing the appeal. The Secretary of the assessee’s society has filed affidavit for condonation of delay stating therein the reasons for belated filing of this appeal. The reasons stated in the affidavit for belated filing reads as follows:- 3. The delay in filing the appeal occurred due to the following genuine and bona fide reasons: The appellant society was not aware of the disposal of the faceless appellate proceedings and did not receive the physical copy of the order passed by the CIT(A). The order was not accessed or downloaded from the e-filing portal due to lack of technical familiarity. The matter came to light only when the undersigned, during a visit to the Chartered Accountant's office for filing the return of income for the subsequent assessment year, discussed the past proceedings, upon which the order was retrieved and advised for appeal. Immediately upon knowledge of the appellate order, the appellant society acted promptly and filed the appeal before the Hon'ble Tribunal without any further delay.
4. I state and submit that the delay was not intentional or deliberate but was caused due to lack of awareness and technical knowledge about the faceless appellate mechanism. The appellant has a strong case on merits and prays that it may be given an opportunity to present its case before this Hon’ble Tribunal.
5. It is therefore respectfully prayed that the Hon'ble Tribunal may be pleased to condone the delay of 260 days in filing the appeal and admit the same for hearing and disposal on merits, in the interest of substantial justice.
On perusal of the same, we find there is sufficient reason for delay in filing this appeal before the Tribunal. Hence, we condone
Brief facts of the case are as follows: The assessee is an Employees Co-op Thrift and Credit Society extending credit to its members. It has filed its return of income for assessment year 2019-20 on 28.11.2020 admitting ‘Nil’ income after claiming deduction u/s.80P of the Act. Since the return was filed beyond the period prescribed u/s.139(1) of the Act, the CPC issued an intimation u/s.143(1) of the Act on 03.02.2021 denying the claim of deduction u/s.80P of the Act.
Aggrieved by the intimation issued u/s.143(1) of the Act, the assessee filed appeal before the First Appellate Authority (‘FAA’). After considering the submissions of the assessee, the FAA confirmed the order of the AO.
Aggrieved by the order of the FAA, the assessee has filed the present appeal before the Tribunal. The Ld.AR submitted that since the co-operative audit was not completed till the due date for filing the return of income, the assessee filed the return belatedly on 28.11.2020. The Ld.AR further submitted that the assessee’s CCIT praying for condonation of delay in filing return of income u/s.139(1) of the Act is pending u/s.119(2)(b) of the Act. It was submitted that since the condonation petition u/s. 119(2)(b) of the Act before the competent authority has direct bearing, the matter may be restored to the files of the AO to await the decision of the Competent Authority on the condonation application filed in terms of section 119(2)(b) of the Act.
The Ld.DR supported the order of the FAA.
We have heard rival submissions and perused the material on record. The assessee had approached the Competent Authority u/s.119(2)(b) of the Act for condonation of delay in filing return of income u/s.139(1) of the Act. The assessee’s application for condonation of delay u/s.119(2)(b) of the Act has a direct bearing as regards the claim of deduction u/s.80P of the Act. In event the competent authority condones the delay in filing the return of income filed by the assessee necessarily the claim of deduction u/s.80P of the Act has to be considered on merits by the concerned AO. Since the assessee’s application of condonation of delay in filing the return of income is pending consideration before the Competent Authority, we deem it appropriate to restore the case to the files of the AO. The AO is directed to pass afresh order after the Competent Authority has passed the order regarding the assessee’s petition for condonation of delay in filing the return of income. It is ordered accordingly.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 16th June, 2025 at Chennai.