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Facts
The assessee, a cooperative society, filed its return of income declaring nil income after claiming exemption under section 80P. The AO completed the assessment at a total income of Rs. 10,89,660/-, denying the deduction under section 80P. The CIT(A) dismissed the appeal exparte for non-prosecution. The assessee filed the present appeal before the Tribunal with a delay of 940 days.
Held
The Tribunal was not convinced with the explanation offered by the assessee for the delay, stating that it is difficult to believe a cooperative society is not well-versed in e-filing operations and that the responsibility cannot be shifted to the CA. The Tribunal found that the reasons provided by the assessee did not sufficiently explain the delay.
Key Issues
Whether the delay of 940 days in filing the appeal can be condoned due to the assessee's alleged ignorance of e-filing procedures and oversight by the CA.
Sections Cited
80P, 143(3), 154
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Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM
This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 24.08.2022 for Assessment Year (AY) 2017-18. 2. Brief facts of the case are that the assessee is a cooperative society registered under the Kerala Co-operative Societies Act, 1969. It is classified as primary agricultural credit cooperative society, engaged in the business of accepting deposits from The Koovappally Service Co-op. Bank Ltd. No.3949 members and providing credit facilities to its members. Return of income for the AY 2017-18 was filed on 16/03/2018 declaring nil income after claiming exemption u/s. 80P of the Income Tax Act, 1961 (for short, 'the Act'). Against the said return of income, assessment was completed by the ITO, Ward-2, Kottayam (for short, 'AO') vide order dated 24/12/2019 passed u/s. 143(3) of the Act at a total income of Rs. 10,89,660/-. While doing so, the AO denied the claim for deduction u/s. 80P of the Act by holding that assessee is a cooperative bank.
Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order dismissed the appeal exparte for non prosecution.
Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal.
At the outset, I find that the present appeal was filed with a delay of 940 days. The assessee filed an application seeking condonation of delay on the following grounds:-
“a. The appellant is not tech-savvy and is not well-versed in the operation of the Income Tax e-filing portal. The said portal and related communications were being handled by the appellant's Chartered Accountant's office. Due to inadvertence and oversight, both the appellant and the Chartered Accountant missed the notices and the appellate order of the CIT (Appeals).
The Koovappally Service Co-op. Bank Ltd. No.3949 b. The appellant was under the genuine impression that the Chartered Accountant's office had filed the appeal before the Hon'ble Tribunal within the prescribed time. c. The appellant came to know about the appellate order only on 06.02.2024, when the undersigned received an SMS alert regarding an outstanding demand from the Income Tax Department. By that time, the statutory time limit for filing an appeal before the Tribunal had already expired. d. The only recourse left to the appellant at that stage was to file a Rectification Application before the CIT (Appeals) under section 154. Accordingly, the rectification application was filed on 08.02.2024. The order in question was an ex parte order, passed without considering the merits of the case, and is contrary to the binding precedent of the Hon'ble Supreme Court in Mavilayi Service Co-operative Bank Ltd. e. However, to date, no action has been taken on the rectification application by the CIT (Appeals). f. In the meantime, the appellant has been receiving frequent SMS alerts and other communications regarding the outstanding demand, which has prompted the appellant to file the appeal before the Hon’ble Tribunal without further delay.”
On mere reading of the contents of the affidavit, it reveals that the appellant pleaded the ignorance of the proceedings as well as order passed by the NFAC, is not well-versed in the operation of Income-tax e-filing portal. The assessee’s CA could not file the appeal within the prescribed time and the assessee came to know about the appellate order and only on 06/02/2024 when the assessee received SMS alerts regarding outstanding demand. It is stated that The Koovappally Service Co-op. Bank Ltd. No.3949 thereafter immediately, petition u/s. 154 was filed before the Ld. CIT(A), however, since 154 petition is still pending before the Ld. CIT(A). The appeal was filed before this Tribunal with a delay of 940 days.
I have carefully perused the averments made in the affidavit. I am not convinced with the explanation offered by the assessee is bonafide. The assessee is a cooperative society and it is difficult to believe that it is not well-versed in the operations of the income tax portal. Moreover, the responsibility cannot be shifted to the shoulders of the CA. Name of the CA has also not been mentioned in the affidavit and the assessee had filed appeal without waiting for the outcome of the petition filed u/s. 154 before the Ld. CIT(A). Thus, the reasons given by the assessee does not really explained the delay hence, it is not a fit case to condone the delay. Therefore, the appeal filed by the assessee is dismissed in limine on the ground of delay.
In the result, the appeal filed by the assessee is dismissed. Order pronounced in the open court on 31st July, 2025. Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 31st July, 2025