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Facts
The assessee, a housing society, challenged an order where a deduction of Rs.3,79,248/- was disallowed under section 80P(2)(d) of the Income Tax Act. The assessee's appeal before the CIT(A) was dismissed due to a delay of 133 days in filing, as the delay was not considered to be for 'sufficient cause'.
Held
The Tribunal observed that the assessee was unaware of the intimation from CPC and that the delay in filing the appeal should be condoned liberally, considering judicial pronouncements. The Tribunal directed the CIT(A) to condone the delay and decide the appeal on merits.
Key Issues
Whether the delay of 133 days in filing the appeal before the CIT(A) should be condoned. Whether the disallowance of deduction under section 80P(2)(d) is justified.
Sections Cited
250, 143(1), 80P(2)(d)
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Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI
O R D E R Per Kavitha Rajagopal, J M:
This appeal has been filed by the assessee, challenging the order of the learned Commissioner of Income Tax (Appeals) (‘ld.CIT(A) for short),National Faceless Appeal Centre (‘NFAC’ for short) passed u/s.250 of the Income Tax Act, 1961 (‘the Act'), pertaining to the Assessment Year (‘A.Y.’ for short) 2020-21.
The assessee has challenged the order of the ld. CIT(A) in not condoning the delay of 133 days in filing the appeal before the first appellate authority, along with other grounds of appeal.
Brief facts of the case are that the assessee is a housing society and had filed its return of income for the year under consideration on 10.02.2021 and the same was processed u/s. 143(1) of the Act, where the CPC/learned Assessing Officer (ld. A.O. for income received by the assessee from its investments made with Co-operative Banks.
Aggrieved the assessee was in appeal before the first appellate authority, challenging the assessment order.
The ld. CIT(A) vide order dated 15.07.2024, dismissed the appeal filed by the assessee for the reason that the assessee had filed the appeal before the first appellate authority with a delay of 133 days for which the assessee has not explained the delay with ‘sufficient cause’.
The assessee is in appeal before us, challenging the impugned order of the ld. CIT(A).
We have heard the rival submissions and perused the materials available on record. It is observed that the assessee has challenged the addition/disallowance made by the CPC/ld. A.O. before the first appellate authority but the said appeal has been filed belatedly after the period of limitation.
The learned Authorised Representative ('ld. AR' for short) for the assessee contended that the assessee had not received the intimation of the CPC in its mail and was completely unaware of it. Further, the ld. AR stated that the intimation of CPC came to the knowledge of the assessee society only when the tax consultant had logged in for downloading 26AS while filing the tax return for A.Y. 2022-23. The ld. AR prayed that the delay in filing the appeal before the first appellate authority be condoned for the the decision of the co-ordinate benches.
The learned Departmental Representative (ld. DR for short), on the other hand, controverted the same and stated that the assessee society must have received the intimation u/s. 143(1) of the Act on the same date when it was passed by the CPC/ld.
A.O. The ld. DR opposed to condoning the said delay as the reason stated by the assessee was not a ‘sufficient cause’ to justify the delay.
Having heard the rival submissions and perused the materials available on record, it is observed that the CPC/ld. A.O. had passed the intimation order dated 26.11.2021 and since the Hon'ble Apex Court had extended the limitation period to 90 days, vide Miscellaneous Application No. 21/2022 in MA No.665/2021 in SMW(C) No. 3/2022 vide order dated 10.01.2022, the limitation for filing of the appeal was extended upto 01.06.2022. The assessee had filed its appeal on 12.10.2022 with a delay of 133 days for which the ld. CIT(A) has failed to consider the reason specified by the assessee as not constituting a ‘sufficient’ or ‘good cause’ for condoning the delay. As there are various judicial pronouncements by the Hon'ble Apex Court and various High Courts where it has been reiterated that the technical defects such as delay in filing has to be construed liberally, we are of the considered opinion that the assessee may be given an opportunity to adjudicate the issue before the ld. CIT(A). We, therefore, direct the ld. CIT(A) to condone the delay in filing the appeal before the first appellate authority and to decide the issue on the merits of the case and in accordance with law.
Order pronounced in the open court on 30.10.2024 Sd/- Sd/- (Gagan Goyal) (Kavitha Rajagopal) Accountant Member Judicial Member Mumbai; Dated :30.10.2024 Roshani, Sr. PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT- concerned 4. DR, ITAT, Mumbai 5. Guard File BY ORDER,