THE SALURU GIRIJAN CO OP MARKETING SOCIETY LIMITED,SALURU vs. INCOME TAX OFFICER, WARD-1, VIZIANAGARAM

Facts

The assessee, a primary cooperative marketing society for scheduled tribes in a remote area, faced an ex parte assessment under Section 144 for AY 2020-21, disallowing a Section 80P(2)(f) deduction and levying a penalty under Section 270A. The assessee's employees, being tribals, were unaware of assessment proceedings due to lack of computer literacy. An appeal filed before the CIT(A) was delayed by 344 days (and 146 days for the penalty appeal), which the CIT(A) dismissed as time-barred, refusing to condone the delay.

Held

The Tribunal found that the CIT(A) erred in not condoning the delay, accepting the assessee's bona fide reasons. Relying on a Supreme Court judgment, it held that a liberal approach should be adopted for condonation of delay and directed the CIT(A) to condone the delays in both appeals and dispose of them on merits.

Key Issues

Whether the CIT(A) was justified in dismissing the assessee's appeals as time-barred without condoning the significant delay, and if the matter should be remanded for a decision on merits given the bona fide reasons for the delay.