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Facts
The assessee, a primary agricultural cooperative credit society, challenged an ex-parte order of the CIT(A) that confirmed a penalty under Section 271B. The CIT(A) had dismissed the assessee's appeal due to a delay of 341 days without considering its merits, despite the assessee claiming the delay was caused by the secretary being held up in completing the statutory audit.
Held
The Tribunal found merit in the assessee's explanation for the delay and noted that the CIT(A) had failed to address the case on its merits. Consequently, the Tribunal set aside the CIT(A)'s order, condoned the delay of 341 days, and remitted the matter back to the CIT(A) for fresh readjudication on merits, granting the assessee an opportunity of being heard.
Key Issues
Whether the CIT(A) was justified in dismissing an appeal solely on grounds of delay without considering the merits, and if the delay of 341 days in filing the appeal should be condoned given the reasons provided by the assessee.
Sections Cited
250, 271B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI AMITABH SHUKLA
K864 Murali Chennampatti Income Tax Officer, Primary Agricultural Co-op Vs. Ward-2(1), Credit Society, Erode. Murali, Murali Post, Anthiyur Thaluk, Erode Dist, Tamil Nadu-638504 [PAN: AABAK3671M] (अपीलधर्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलधर्थी की ओर से/ Assessee by : Ms.Vijayalakshmi, C.A, प्रत्यर्थी की ओर से /Revenue by : Shri Eswaran, JCIT : 22.01.2025 सुिवधई की तधरीख/Date of Hearing : 24.01.2025 घोर्णध की तधरीख /Date of Pronouncement आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed against the order bearing DIN & Order No.ITBA/NFAC/S/250/2024-25/1069276918(1) dated 30.09.2024 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment years 2017-18. Through the aforesaid appeal the assesse has challenged order u/s 250 dated 30.09.2024 passed by NFAC, Delhi.
Page - 1 - of 3 2.0 At the outset the Ld. Counsel for the assesse informed that the Ld. First Appellate Authority has passed an ex-parte order thereby confirming the penalty order u/s 271B dated 24.08.2022 and that the appeal was dismissed for being filed late without any justified grounds. It was pleaded that the assesse had committed delay of about 341 days and for which it had justified grounds. It was stated that the assessee is primary agricultural cooperative credit society and that the Tamil Nadu Cooperative Audit Department, Erode is its statutory auditor. The delay was caused in filing of appeal as the secretary was held up in completion of its statutory audit which in turn caused the delay before the Ld. CIT(A). The Ld. Counsel submitted the matter may be restored to Ld. CIT(A) for readjudication on its merits and that it shall make full compliance to the notices of Ld. CIT(A). The Ld. DR placed reliance upon the authorities below. 3.0 We have heard the rival submissions in the light of material available on records. It is trite law that no litigant benefits by non-prosecution of its case. We find sufficient force in the pleadings of the assesse as to why it could not file its appeal in time before the Ld. First Appellate Authority. We have also noted that apart from merely harping on the issue of delayed filing by the assesse the Ld. CIT(A) has not touched upon merits of the case. 4.0 We are therefore of the view that ends of justice would be met if the case is set aside to the file of the Ld. CIT(A) for readjudication after giving opportunities of being heard to the assesse and to pass a speaking order. We also direct the Ld. CIT(A) to condone the delay of 341 days in filing of appeal in this case. He will be at liberty to call for any remand report from the Ld. AO if warranted by the facts of the case. The assesse shall be bound to comply to all Page - 2 - of 3 Ld. CIT(A). Any non-compliance from the assesse side shall be adversely viewed. Accordingly, we set aside the order of the Ld. First Appellate Authority and direct him to readjudicate the matter de novo. Accordingly, the grounds of appeal raised by the assesse are allowed for statistical purposes. 5.0 In the result, the appeal of the assesse is allowed for statistical purposes. Order pronounced on 24th , January-2025 at Chennai.