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

Facts

The assessee, a cooperative marketing society, filed a nil income return for AY 2020-21. The AO issued an ex parte assessment under Section 144, disallowing a deduction under Section 80P(2)(f) and levying a penalty under Section 270A, due to the assessee's failure to provide details. The assessee's appeal to CIT(A) was dismissed as time-barred due to a 344-day delay, which the CIT(A) refused to condone.

Held

The Tribunal determined that the assessee, operating in a remote area with tribal employees unfamiliar with computers, had a bona fide reason for the delay, having learned of the assessment only upon receiving a demand letter. Citing a Supreme Court precedent, the Tribunal ruled that a liberal approach should be taken for condonation of delay. The CIT(A)'s order was set aside, and the matter was remanded to the CIT(A) to condone the delay and decide the appeal on its merits.

Key Issues

Whether the CIT(A) was justified in not condoning the 344-day delay in filing the appeal by the assessee, a cooperative society, against ex parte assessment and penalty orders.