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Facts
The assessee's appeals before the Ld.CIT(A) concerning penalties levied under section 270A were dismissed due to a delay in filing. The assessee argued that similar delays in quantum appeals were condoned by the ITAT.
Held
The Tribunal condoned the delay in filing the penalty appeals, subject to payment of costs, and restored the matters to the Ld.CIT(A) for decision on merits after the quantum appeals are decided.
Key Issues
Condonation of delay in filing penalty appeals and the subsequent decision on merits.
Sections Cited
270A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, B BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI S.R.RAGHUNATHA
आदेश / O R D E R PER ABY T. VARKEY, JM: These are appeals preferred by the assessee against the orders of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter referred to as “the Ld.CIT(A)”), Delhi, dated 27.12.2023 for the Assessment Year (hereinafter referred to as "AY”) 2018-19 & dated 02.07.2025 for AY 2020-21.
The main grievance of the assessee is against the action of the Ld.CIT(A) dismissing the penalty appeal [u/s.270A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act‘)] not on merits but refusing to condone the delay in filing of appeal before him.
At the outset, the Ld.AR of the assessee brought to our notice that the assessee by preferring these appeals has challenged the action of the Ld.CIT(A) confirming the penalty levied u/s.270A of the Act by refusing to condone the delay. He also brought to our notice that similar action was taken by the Ld.CIT(A) while considering the quantum appeal preferred by the assessee by not condoning the delay in filing of appeal before him, which matter was carried to this Tribunal [in & 2784/Chny/2025 for AY 2018-19 & 2020-21] and the Tribunal vide order dated 31.12.2025 was pleased to condone the delay and restore the quantum appeals back to the file of the Ld.CIT(A). Therefore, he pleaded that since the assessee has a good case on merits and since, the matter has been restored to the file of the Ld.CIT(A) to be decided on merits, the penalty levied against the assessee pursuant to the quantum additions made by the AO would be unsustainable. Therefore, he prayed that the assessee being Cooperative Credit Society, the delay caused may be condoned and the quantum appeal may be restored back to the file of the Ld.CIT(A) to be decided after quantum appeals have been decided.
The Ld.DR vehemently opposed the plea of the assessee and submitted that there was considerable delay in filing the appeal and & 2876/Chny/2025 (AYs 2018-19 & 2020-21) The Simpson & Group Companies – Coop. Credit Society Ltd. :: 3 ::
therefore, it shouldn’t be condoned. In his rejoinder, [the Ld.AR drew our attention to the petition for condoning the delay and affidavit filed by the Managing Director of assessee Credit Society] and submitted that the penalty order u/s.270A of the Act was passed for AY 2018-19 on 05.02.2022. Likewise, penalty order for AY 2020-21 was passed on 20.03.2023. Further, he pointed out that the delay caused in the assessee’s case for AY 2018-19 would fall in the exemption granted by the Hon’ble Supreme Court in the case of “Re: Cognizance for Extension of Limitation [2022] 441 ITR 722 (SC)”, wherein, their Lordships have directed exclusion of period “from 15.03.2020 to 28.02.2022” and also gave liberty to the affected party further period of ‘90’ days time to file appeal. When considered, in the light of the Hon’ble Supreme Court directions (supra) then the delay caused in filing of appeal will be reduced to ‘441’ days for AY 2018-19.
Coming to the appeal for AY 2020-21, the penalty order was dated 20.03.2023 and the assessee has instituted the appeal on 07.11.2023 with a delay of ‘201’ days. Having gone through the contents of the affidavit and application for condoning the delay, we are of the view that there was sufficient cause for delay, and the assessee’s omission to file the appeal within time can’t be termed deliberate and, in any case, the assessee doesn’t gain any advantage of not filing the appeal in time.
1. & 2876/Chny/2025 (AYs 2018-19 & 2020-21) The Simpson & Group Companies – Coop. Credit Society Ltd. :: 4 ::
1. Hence, in the interest of justice and fair play, we condone the delay in filing of appeals before the Ld.CIT(A) provided assessee deposit a cost of ₹5,000/- for each case [i.e. ₹10,000/-] in the State Legal Aid Authority, Hon’ble Madras High Court within three (3) months of receipt of this order; and produce necessary proof of depositing of the same before the Ld.CIT(A), then only the Ld CIT(A) to decide the appeal. We further note that the Ld.CIT(A) has not decided the penalty appeals on merits; and hence, considering the fact that the quantum appeals preferred by the assessee has been restored back to the file of the Ld.CIT(A) for AYs 2018- 19 & 2020-21 vide order dated 31.12.2025 in the assessee’s own case, we restore both the penalty appeals also back to the file of the Ld.CIT(A) with a direction to decide quantum appeal first and thereafter decide the penalty appeal on merits after hearing the assessee. The assessee to diligently appear & present documents to support the grounds raised before the Ld.CIT(A) without fail and the Ld.CIT(A) to decide in accordance to law after hearing the assessee.
In the result, appeals filed by the assessee are allowed for statistical purposes.