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Facts
The assessee, Shree Mahalaxmi Mercantile Co-op. Bank Ltd., experienced significant delays in filing its appeal before the Tribunal (392 days) and an earlier appeal before the CIT(A) (one year). These delays were attributed to the fraudulent actions of the bank's former Manager, Shri Sureshbhai Chotalal Patel, who handled tax matters, absconded after causing financial loss, and was himself involved in the fraud despite making excuses for the delay to the CIT(A). Consequently, the CIT(A) had dismissed the initial appeal based on limitation.
Held
The Tribunal, recognizing the exceptional circumstances of the manager's fraud, condoned the delay in filing the present appeal and the earlier appeal before the CIT(A). It set aside the CIT(A)'s order and directed the CIT(A) to consider and decide the assessee's appeal on its merits, without prejudice to the delay in filing.
Key Issues
Condonation of delay in filing appeals before the CIT(A) and Tribunal due to a former manager's fraudulent acts, and whether the CIT(A)'s dismissal on limitation grounds was justified.
Sections Cited
Section 250 of the Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “ C ” BENCH, AHMEDABAD
Before: Shri Sanjay Garg & Annapurna Gupta
Year : 2020-21 Shree Mahalaxmi Mercantile The ADIT बनाम/ Co-op.Bank Ltd. CPC, Bengaluru. v/s. Darbhavati Chamber Jris.AO – Patel Waga, Tower Road The DCIT Circle-1(1)(1) Dabhoi Vadodara – 390 007 Varoda – 391 110 "थायी लेखा सं./PAN: AAAAS 1769 F (अपीलाथ(/ Appellant) ()* यथ(/ Respondent) Assessee by : Shri Manish J. Shah & Rushin Patel, ARs Revenue by : Shri Rohit Aasudani, Sr.DR सुनवाई की तारीख/Date of Hearing : 21/01/2026 घोषणा की तारीख /Date of Pronouncement: 28/01/2026 आदेश/O R D E R
Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the assessee against the order of Office of the Learned Commissioner of Income Tax, Appeal, ADDL/JCIT (A)-11, Mumbai (National Faceless Appeal Centre), [hereinafter referred to as ‘CIT(A)’], dated 22/02/2024, passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2020-21.
There is a delay of 392 days in filing the present appeal. Even there was a considerable delay of one year in filing the appeal before the Ld. CIT(A) Shree Mahalaxmi Mercantile Co-op.Bank Ltd. vs. ADIT, CPC Bengaluru, Juris. AO – The DCIT Asst. Year : 2020-21 because of which the appeal of the assessee was dismissed by the Ld. CIT(A) being barred by limitation.
The Ld. Counsel for the assessee, at the outset, has produced on record the affidavit one Shri Jashvantsinh Rupsinh Charel, who has been appointed an Official Liquidator by the