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Facts
The assessee, a cooperative society, filed an appeal against an order that denied a deduction claimed under Section 80P(2)(b)(i). The appeal was not admitted by the CIT(A) due to a significant delay of 1571 days, purportedly caused by technical glitches in filing the income tax return.
Held
The Tribunal condoned the delay in filing the appeal before the CIT(A), citing the cooperative society's rural operations and potential communication gaps in the faceless regime. The impugned order was set aside, and the appeal was restored for admission and adjudication on merits.
Key Issues
Whether the delay in filing the appeal before the CIT(A) should be condoned due to technical glitches and rural operation of the assessee, and if so, whether the appeal should be admitted for adjudication on merits.
Sections Cited
143(1), 80P(2)(b)(i)
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Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH
Before: HON’BLE SHRI LALIET KUMAR, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
(िनधा�रणवष� / Assessment Year: 2018-19) The Pakhowal M.P.C.S.Ltd. ITO Village Pakhowal Tehsil Raikot बनाम/ Vs. Ward-1 District Ludhiana.141108 Jagraon. �थायीलेखासं./जीआइआरसं./PAN/GIR No.AAAAT-4714-D (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Shri Manpreet Singh Kanda (Advocate )–Ld. AR ��थ�कीओरसे/Respondent by : Dr Ranjit Kaur (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 04-06-2025 घोषणाकीतारीख /Date of Pronouncement : 09-06-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2018-19 arises out of an order of learned Addl. / Joint Commissioner of Income Tax (Appeals)-5, Delhi [CIT(A)] dated 07-08-2024 in the matter of an intimation issued by CPC u/s 143(1) on 12-07-2019 denying deduction claimed by the assessee u/s 80P(2)(b)(i) for Rs.6.10 Lacs. The Ld. CIT(A) did not admit the appeal for want of condonation of delay of 1571 days Aggrieved, the assessee is in further appeal before us.
The Ld. AR stated that the assessee is a cooperative society existing since 1977 and it is supplying milk to MILKFED. It is entitled for impugned deduction which was denied due to technical glitches in the software being used by the assessee for filing the return of income. The dealing Chartered Accountant came to know about the adjustment only when the outstanding demand was reflected on the income tax portal. The notices / communications were sent through email and the officer bearers had no access to electronic mode of communication as they were residing in rural areas. Accordingly, a prayer has been made for adjudication of appeal on merits which has been opposed by Ld. Sr. DR.
It emerges that the assessee is a cooperative society existing since the year 1977. It is a society of milk producing farmers who would supply milk to MILKFED. The background of the assessee would indicate that it is operating in rural areas and the possibilities of communication gaps during recently introduced faceless regime could not be ruled out. The assessee would not gain anything by not filing the appeal on time. Keeping in mind the guiding principles laid down by Hon’ble Supreme Court in the case of N. Balakrishnan vs. M. Krishnamurthy (7 SCC 123), we condone the delay before Ld. CIT(A). Accordingly, the impugned order is set aside and the appeal is restored back to Ld. CIT(A) for admission and adjudication on merits. The assessee is directed to plead and prove its case forthwith.
The appeal stand allowed for statistical purposes. Order pronounced on 09-06-2025.