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Facts
The assessee, a Cooperative Society, filed an appeal against an assessment order that made significant additions, but the CIT(A) dismissed it in limine due to a 127-day delay. The assessee attributed the delay to notices being sent to a tax consultant and a misunderstanding regarding compliance, which led to belated access to the assessment order and subsequent appeal filing.
Held
The ITAT found 'reasonable cause' for the 127-day delay, noting it was not intentional and the assessee would not have gained from it. Citing Supreme Court judgments, the ITAT condoned the delay and remitted the entire matter back to the CIT(A) for fresh adjudication on merits, with directions to pass a speaking order after providing reasonable opportunity.
Key Issues
Whether the delay of 127 days in filing the appeal before CIT(A) should be condoned and the matter remitted for adjudication on merits.
Sections Cited
143(3), 144B, 250, 80P(2)(d), 80P(2)(c), 250(6)
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Income Tax Appellate Tribunal, PUNE BENCHES “A”, PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
PER DR. MANISH BOARD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee pertaining to A.Y. 2020-21 is directed against the order dated 20.05.2025 framed by National Faceless Appeal Centre, Delhi arising out of Assessment Order dated 24.09.2022 passed u/s.143(3) r.w.s.144B of the Income Tax Act, 1961.
At the outset, ld. Counsel for the assessee requesting to set aside the issues raised in the instant file to the file of ld.CIT(A) submitted that the assessee’s appeal has been dismissed in limine by ld.CIT(A) being barred by limitation. He requested for condoning the delay in filing of appeal before ld.CIT(A) referring to the affidavit placed on record providing reasons for delay of 127 days in filing the appeal before ld.CIT(A). Relevant contents of affidavit reads as follows :
“NFAC has dismissed the appeal by passing an order u/s 250 dated 20/05/2025 by not condoning the delay in filing the appeal before CIT(A). Against the order u/s 143(3) r.w.s. 1448 dated 24/09/2022, the appeal before CIT(A) ought to have been filed before 23/09/2022, but, same is filed on 28-02-2023. Therefore, there is an admitted delay of 127 days in filing the appeal before ITAT. The reason for such delay is as follows: There is only one clerical staff carrying out the instructions of the members of board. It appears that notices are sent to tax consultant and society was under the impression that compliances were been made. However, it was observed that not a single notice has been complied with, and accordingly as society was not getting intimated over the email, it has resulted into accessing the order belatedly. We most humbly submit that, in view of just and sufficient reasons for delay in filling the appeal the delay of 127 days may kindly be condoned and the matter may be set aside back to the file of CIT(A).”
Perusal of the same indicates that reason for delay was that the notices were sent to the Tax Consultant and society was under the impression that compliances were made and that has resulted in the delay in filing of appeal before ld.CIT(A).
On the other hand, ld. DR supported the order of ld.CIT(A).
We have heard the rival contentions and perused the record placed before us. We observe that assessee is a Cooperative Society and income of ₹3,13,140 declared in the return furnished on 10.12.2020 wherein deduction u/s.80P(2)(d) and 80P(2)(c) has been made. After the case being selected for complete scrutiny and serving valid notices to the assessee, ld. Assessing Officer called for the details to which submissions were made and the assessment proceedings were completed after making various additions amounting to ₹13,59,17,500/-.
Aggrieved with these additions, assessee preferred appeal before ld.CIT(A) but admittedly there is delay of 127 days in filing of the appeal. Reasons provided by the assessee before ld.CIT(A) of having not received the notices on the registered e- mail id could not convince ld.CIT(A) and he dismissed the appeal as barred by limitation.
We have gone through the affidavit filed by the assessee providing reasons giving rise to the delay in filing of appeal before ld.CIT(A). We are satisfied that ‘reasonable cause’ prevented the assessee to file the appeal within the stipulated time. We note that the delay is not intentional and assessee would not have gained from filing the appeal with a delay. We therefore in light of judgments of Hon’ble Apex Court in the case of Collector, Land Acquisition, Anantnag & Anr. Vs. Mst. Katiji & Ors. reported in (1987) 2 SCC 107 and in the case of Inder Singh Vs. State of Madhya Pradesh judgment dated 21.03.2025 (2025 INSC 382) condone the delay of 127 days in filing of the appeal before ld.CIT(A).
Further, since ld.CIT(A) has not dealt with merits of the case, we in the larger interest of justice and being fair to both the parties deem it appropriate to remit all the issues raised in the instant appeal to the file of ld.CIT(A) for necessary adjudication. Needless to mention that ld.CIT(A) shall afford reasonable opportunity to the assessee in the set aside proceedings and pass a speaking order as contemplated u/s.250(6) of the Act. Assessee is directed to update latest email id and contact detail on ITBA portal. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Impugned order is set aside and effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on this 06th day of January, 2026.