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Facts
The assessee's appeal before the CIT(A)/NFAC was dismissed as time-barred due to a delay of 1163 days. The assessee is a cooperative society challenging an addition of Rs.56,25,624/- made by the Assessing Officer u/s. 80P of the Act.
Held
The Tribunal condoned the delay in filing the appeal before the CIT(A)/NFAC, considering the Covid-19 pandemic and the assessee's location and conversancy with the online portal. The appeal was set aside and remitted back to the CIT(A)/NFAC for adjudication on merits.
Key Issues
Whether the delay in filing the appeal before the CIT(A)/NFAC should be condoned, and whether the matter should be remanded for adjudication on merits.
Sections Cited
250, 143(3), 143(3A), 143(3B), 80P
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Income Tax Appellate Tribunal, PUNE BENCHES “A”, PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
This appeal at the instance of assessee pertaining to Assessment Year 2018-19 is directed against the order dated 04.06.2024 of National Faceless Appeal Centre, Delhi passed u/s.250 of the Income-tax Act, 1961 (in short ‘the Act’) arising out of Assessment Order dated 31.03.2021 passed u/s.143(3) r.w.s.143(3A) & 143(3B) of the Act.
At the outset, Ld. Counsel for the assessee submitted that on account of delay in filing of the appeal. ldCIT(A) has dismissed the same in limine confirming the additions made by the Assessing Officer. He submitted that ‘reasonable cause’ prevented the assessee in filing of the appeal in time before ld.CIT(A). He submitted that given an opportunity the MSEB Employee Coop. Credit Society Ltd. Jalna assessee shall furnish the documents before ld.CIT(A) to plead its case. Ld. Departmental Representative raised no objection if the matter is restored to the file of ld.CIT(A).
We have heard the rival contentions and perused the record placed us. Assessee is a Cooperative society and assessment for A.Y. 2018-19 completed on 31.03.2021 u/s.143(3) r.w.s.143(3A) & 143(3B) of the Act wherein the ld. Assessing Officer disallowed the claim of deduction u/s.80P of the Act at Rs.56,25,624/-. Assessee challenged the addition made by the AO before ld.CIT(A) but the appeal was time barred by limitation. A major portion of the delay deserves to be accepted as it was on account of covid-19 pandemic outbreak restrictions stretched upto May, 2022. We also further observe that the assessee is a Cooperate society located in a remote place and is claimed to be not well conversant with the income-tax portal and filing of the appeal. Therefore, it took some time to find proper counsel to deal with the matter.
Admittedly, in the present case, there is a delay of 1163 days in filing the appeal before ld.CIT(A)/NFAC. Since major delay period includes Covid-19 pandemic outbreak, the ld. CIT(A)/NFAC ought to have considered the same by virtue of judgment of the Hon’ble Supreme Court in Cognizance for Extension of Limitation, In re 438 ITR 296 (SC) read with judgment in Cognizance for Extension of Limitation, In re 432 ITR 206 (SC) dated 08-03-2021 and 421 ITR 314. Ld. DR has not brought out anything contrary to disbelieve the averments made by the assessee. In this regard, we would like to quote the decision of Hon’ble Jurisdictional High Court in the case of MSEB Employee Coop. Credit Society Ltd. Jalna Vijay Vishin Meghani vs. DCIT, 389 ITR 250 (Bom.) wherein delay of 2984 days was condoned. Hon’ble Court held that in the matter of condonation of delay an overall view in the larger interest of justice has to be taken. None should be deprived of adjudication on merits unless the Court of law or the Tribunal/Appellate Authority finds that the litigant has deliberately and intentionally delayed filing of the appeal, that he is careless, negligent and his conduct is lacking in bonafides. Considering the given facts, we condone the delay in filing the appeal before ld.CIT(A) and admit the appeal for adjudication.
In the light of above and in the larger interest of justice, we deem it appropriate to remit the issues raised in the instant appeal back to the file of CIT(A)/NFAC for necessary adjudication, after duly considering the submissions/ evidences filed by the assessee and pass a speaking order as contemplated u/s.250(6) of the Act and also considering the judgment of Hon’ble Bombay High Court in the case of PCIT (C) vs. Premkumar Arjundas Luthra (HUF) (2017) 297 CTR 614 (Bombay) wherein it is held that ld.CIT(A)/NFAC is obliged to dispose of the appeal on merits even in an exparte order. Needless to mention that ld.CIT(A) in the course of set-aside proceedings shall afford a reasonable opportunity of hearing to the assessee. Assessee is directed to update latest email id and contact detail on ITBA portal. Assessee is also directed to remain vigilant about the notice of hearing and not to take adjournment unless otherwise required for reasonable cause. Impugned order is set aside and the effective grounds of appeal raised by the assessee are allowed for statistical purposes.
MSEB Employee Coop. Credit Society Ltd. Jalna
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 14th day of July, 2025.