ADARSH CREDIT COOPERATIVE SOCIETY LTD.,AHMEDABAD vs. DCIT, CENTRAL CIRCLE-1, JODHPUR
Facts
The assessee's appeals for multiple assessment years were dismissed by the CIT(A) due to significant delays in filing. The official liquidator, Sh. H.S. Patel, argued that assessment orders were not properly served or communicated to him due to his initial appointment being quashed and subsequent re-appointment, issues with the assessee's registered office, and lack of access to the tax portal. The COVID-19 pandemic and related Supreme Court extensions for limitation periods further contributed to the delay.
Held
The Tribunal found that there was sufficient cause for condoning the delay in filing the appeals, acknowledging the unique circumstances faced by the official liquidator. After accounting for the Supreme Court's COVID-19 related extensions, the net delay for the lead assessment year was determined to be 280 days. The Tribunal condoned the delay and restored all appeals to the CIT(A) for fresh adjudication on merits, applying the same findings mutatis mutandis to all other connected appeals.
Key Issues
Whether there was 'sufficient cause' to condone the substantial delay in filing appeals before the CIT(A), considering the official liquidator's difficulties with appointment, communication of assessment orders, office location changes, and the impact of the COVID-19 pandemic on limitation periods.
Sections Cited
Section 144 of the Income Tax Act, 1961, Section 86 of the Multi State Co-operative Societies Act, 2002, Rules 34(4) of Income Tax Appellate Tribunal Rules
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Income Tax Appellate Tribunal, JODHPUR BENCH (Virtual
Before: SHRI RAJPAL YADAV, HONʼBLE & 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.
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