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Facts
The assessee, Adarsh Credit Cooperative Society Ltd., faced dismissal of its appeals (AY 2012-13 to 2019-20) by the CIT(A) due to delay in filing. The official liquidator appointed for the assessee contended that the delay was due to initial legal challenges to his appointment, subsequent re-appointment, the nationwide COVID-19 pandemic extending limitation periods, and the assessment orders being passed ex-parte under Section 144 to an incorrect address, which meant he only became aware after recovery proceedings began in 2022.
Held
The Income Tax Appellate Tribunal (ITAT) found that there was sufficient cause for the delay, considering the unique circumstances of the liquidator's appointment, the non-communication of assessment orders to the proper authority, and the Supreme Court's extensions during the COVID-19 pandemic, leading to a net delay of 280 days for AY 2012-13. The ITAT condoned the delay, admitted all appeals, and restored the matters to the CIT(A) for fresh adjudication on merits.
Key Issues
Whether the CIT(A) erred in dismissing the appeals of the assessee, Adarsh Credit Cooperative Society Ltd., on grounds of delay without adequately considering the sufficient cause provided by the official liquidator, which included issues of appointment, communication of assessment orders, and the impact of the COVID-19 pandemic on limitation periods.
Sections Cited
Income Tax Act, 1961: Section 144, Multi State Co-operative Societies Act, 2002: Section 86, Income Tax Appellate Tribunal Rules: Rule 34(4)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JODHPUR BENCH (Virtual
Before: SHRI RAJPAL YADAV, HONBLE & DR. MITHA LAL MEENA, HONBLE
PER BENCH: The bunch of appeals by the assessee is directed against the separate order of the Commissioner of Income Tax (appeal), Jaipur-5 (hereinafter referred to as "the CIT appeal"] challenging therein rejection of its application for condonation of Deley and consequently dismissal of the appeals as not admitted in violation of principles of natural justice. Assessment Year 2012-13 to 2019-20
Considering common issue on identical facts, these appeals were heard together and adjudication by this consolidated order for sake of convenience and brevity. We take the appeal in ITA No. 5/Jodh/2024 in respect with Assessment Year 2012-13, as a lead case for discussion and adjudication of the issue.
At the time of hearing the Ld. Counsel of the assessee submitted that Sh. Hirabhai Somabhai Patel (Retd. IAS) was appointed as the official liquidator of Adarsh Credit Co-Operative Society Limited vide order dated 6th December 2018 issued under section 86 of the Multi State Co-operative Societies Act, 2002. However, the Hon'ble Gujarat High Court vide order dated 20th December 2018 in SCA 19619 of 2018 Jamil Ahmed, Director, Adarsh Credit Co-Operaiive Society Ltd v. Central