FLORAL DECK PLAZA PREMISES CO-OP SOCIETY LTD,MUMBAI vs. CPC ITO, MUMBAI

Date of Hearing – 03/12/2024 Date of Order – 06/12/2024

O R D E R PER SANDEEP SINGH KARHAIL, J.M.

The assessee has filed the present appeal challenging the impugned order dated 08/08/2024, passed under section 250 of the Income Tax Act, 1961 (“the Act”) by the learned that Additional/Joint Commissioner of Income Tax (Appeals)-1, Chandigarh (“learned Addl./Joint CIT(A)”), for the assessment year 2018-19.

2. In this appeal, the assessee has raised the following grounds: - “1. The learned CIT (Appeals) erred in dismissing the appeal on account of delay in filling the first appeal Delay is off 856 days, excluding 715 days as directed by Hon. SC in Suo Moto Writ petition.

2. The learned CIT (Appeals) erred in not deciding the ground of addition of Rs. 1,03,48,815/- as a business income as against NIL business income filed by assessee.

3. The learned CIT (Appeals) erred in not allowing any expenses as per audited P & L Account as CPC had made addition of gross receipts of Rs. 1,03,48,815/- as a business income & not considering Mutuality Principal & SC judgement.”

3. We have considered the submissions of both sides and perused the material available on record. In the present case, at the outset, it is evident that the learned CIT(A) has passed the order dismissing the appeal filed by the assessee on the ground of delay without adjudicating the grounds raised by the assessee on merits against the adjustment made vide intimation issued under section 143(1) of the Act. We find that the Accountant/Consultant of the assessee made the following submission in his affidavit sworn on 17/04/2024 for seeking condonation of delay of 1571 days in filing the appeal before the learned CIT(A):-

“1 Shabbir N Akolawala, age 70 years, residing at A 102 Badri Bulding, Mathuradas Extension Road, Kandivall (West), Mumbai - 400 067, do hereby declare that I am the Accountant of M/s Floral Deck Plaza Premises Co- operative Society Ltd., Which is situated at Floral Deck Plaza, Central MIDC Road, Opp. SEEPZ, Andheri (East), Mumbai - 400 093 I am handling Accounts of M/s Floral Deck Plaza Premises Co-operative Society Ltd. I have submitted my email id with Income Tax Department which is -- shabbirna786@gmail.com Appeals for AY 2018-19 is filed late due to following reasons. I am giving reasons for the delay of late submission of Appeal as under.

4. As is evident from the impugned order, the learned CIT(A) did not agree with the submissions made on behalf of the assessee and held that there is no good and justifiable reason for the delay in filing the appeal. Accordingly, the learned CIT(A) dismissed the appeal as not maintainable. During the hearing, no material was brought on record to controvert the submissions made on behalf of the assessee before the learned CIT(A) seeking condonation of delay.

5. We find that the reasons stated by the assessee for seeking condonation of delay fall within the parameters for grant of condonation laid down by the Hon’ble Supreme Court in the case of Collector Land Acquisition, Anantnag Vs. MST Katiji and others: 1987 SCR (2) 387. It is well established that rules of procedure are handmaid of justice. When substantial justice and technical considerations are pitted against each other, the cause of substantial justice deserves to be preferred. In the present case, the assessee did not stand to benefit from the late filing of the appeals. In view of the facts and circumstances of the present case, as noted above, we are of the considered view that the assessee has proved sufficient cause for not filing the appeal before the learned CIT(A) within the prescribed limitation period. It is further pertinent to note that the assessee does not stand to benefit by not challenging the additions made vide intimation issued under section 143(1) of the Act. Accordingly, we are of the view that the said delay should be condoned. Hence, we deem it appropriate to set aside the impugned order and restore the matter to the file of the learned CIT(A) for consideration on merits, as per law, after condoning the delay in filing the appeal by the assessee. We order accordingly. Needless to mention no order shall be passed without affording reasonable opportunity of hearing to the parties. The assessee is directed to appear before the learned CIT(A) on all the dates of hearing as may be fixed without any default. As the matter is being restored to the file of the learned CIT(A) for adjudication on merits, the other grievances raised by the assessee in the present appeal do not call for adjudication at this stage. Accordingly, grounds raised by the assessee are allowed for statistical purposes.