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Facts
The assessee, a co-operative housing society, filed its return of income for AY 2014-15 declaring 'Nil' income. The return was processed under section 143(1) of the Income Tax Act, 1961, assessing the total income at Rs. 6,67,750/-. The assessee filed an appeal before the CIT(A) after a significant delay, which was dismissed upon rejection of the condonation of delay application.
Held
The Tribunal held that substantial justice should not be denied on technicalities. The assessee's delay in filing the appeal was attributed to pursuing a rectification process and the death of its CA. The Tribunal found these reasons justifiable and decided to condone the delay.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal solely on the ground of delay without considering the reasons for the delay and the principles of natural justice.
Sections Cited
250, 143(1), 249(2), 249(3), 80P(2)(d)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘J(SMC
Before: SHRI BR BASKARAN & SHRI SUNIL KUMAR SINGH
Assessee by Shri. Ashish Thakurdesai Revenue by Shri. Ajit Pal Singh Daia (SR.DR.) Date of Hearing 18/07/2024 Date of Pronouncement 15/10/2024 आदेश / O R D E R PER SUNIL KUMAR SINGH (J.M): 1. This appeal has been preferred against the impugned order dated 09.02.2024 passed in Appeal no. NFAC/2013- 14/10212563 by the Ld. Commissioner of Income– tax(Appeals)/ National Faceless Appeal Centre (NFAC) [hereinafter referred to as the “CIT(A)”] u/s. 250 of the Income- tax Act, 1961 [hereinafter referred to as "Act"] for the Shree Sejal Tower Co-operative Housing Society Limited Assessment year [A.Y.] 2014-15, wherein learned CIT(A) has dismissed assessee's appeal upon rejection of assessee’s application for condonation of delay.
Brief facts state that the appellant assessee is a co-operative housing society and filed its return of income on 22.03.2016 for A.Y. 2014-15, declaring total income at Rs. Nil. The return was processed by CPC u/s. 143(1) of the Act dated 30.06.2016 and assessed total income of the assessee at Rs. 6,67,750/-. Aggrieved, assessee filed an appeal before learned CIT(A) who dismissed assessee’s appeal merely upon rejection of assessee’s application for condonation of delay.
Assessee has approached this Tribunal on the ground that learned CIT(A) has erred in dismissing the appeal merely on the ground of delay.
We have heard the parties and perused the material available on record.
Learned AR has submitted that learned CIT(A) has erred in dismissing assessee’s appeal merely on delay without considering the fact that assessee was pursuing the alternative remedy of rectification. Prayed to set aside the impugned order.
Learned DR submitted that no sufficient cause was shown by the assessee before the first appellate authority to condone the said delay and supported the impugned order.
We notice that assessee e-filed first appeal on 26.01.2023 passed u/s. 143(1) of the Act 30.06.2016 after about 2350 days out of this, the period of about 705 days shall be Shree Sejal Tower Co-operative Housing Society Limited deducted for the duration from 15.03.2020 to 28.02.2022 in compliance of Hon’ble Apex Court’s order dated 10.01.2022 due to Global pandemic COVID-19. The net delay therefore remains about 1625 days. The limitation period for filing an appeal before learned CIT(A) u/s. 249(2) of the Act is 30 days. However, section 249(3) of the Act empowers the first appellate authority to condone the delay if satisfied that appellant had sufficient cause for not presenting it within that period. Learned CIT(A) was, however not satisfied with the cause shown by the assessee and declined to condone the said delay in filing the first appeal before him.
It is well established principle of law that the substantial justice cannot be denied on technical aberrations. In an adversial justice system like ours, no party should ordinarily be denied the opportunity of participating in the process of justice dispensation. Justice is the goal of jurisprudence. Any interpretation which eludes or frustrates the recipient of justice can not to be followed. Assessee took the ground before learned CIT(A) that it was taking follow-up action of rectification against the intimation order passed u/s. 143(1) of the Act with a bonafide belief that the disallowance made u/s. 80P(2)(d) of the Act may be deleted in the rectification process. Another ground for the delay was shown as death of assessee’s CA in the year 2017. In the totality of facts and circumstances of the case and in the interest of justice, it deems just and proper to condone the said delay in filing first appeal.
Shree Sejal Tower Co-operative Housing Society Limited 9. In the result, the appeal is allowed. The impugned order dated 09.02.2024 is set aside. The delay in filing the first appeal before first appellant authority i.e learned CIT(A) stands condoned. We restore the matter back to the file of learned CIT(A) for passing order afresh on merit in accordance with law. Needless to say that the first appellate authority shall ensure the substantial compliance of the principles of natural justice. Order pronounced on 15.10.2024.