ADARSH CREDIT COOPERATIVE SOCIETY LTD.,AHMEDABAD vs. DCIT, CENTRAL CIRCLE-1, JODHPUR
Facts
The assessee's appeals for Assessment Years 2012-13 to 2019-20 were dismissed by the CIT(A) due to delay in filing. The official liquidator, appointed after multiple court interventions and re-appointments, contended that the ex-parte assessment orders passed under section 144 of the Income Tax Act were not properly served or communicated to him at the correct address and that he only became aware of them upon initiation of recovery proceedings. He also cited difficulties like the COVID-19 pandemic, non-access to the Income Tax portal, and operational challenges during the period.
Held
The tribunal found sufficient cause for the delay in filing the appeals before the CIT(A), including the complexities surrounding the official liquidator's appointment and communication issues. It condoned the delay (280 days for AY 2012-13, less for subsequent years) and restored all appeals to the file of the CIT(A) for fresh adjudication on merits after affording adequate opportunity of being heard to the assessee.
Key Issues
Whether there was sufficient cause for the delay in filing appeals before the CIT(A) against ex-parte assessment orders, justifying the condonation of delay and remanding the cases for adjudication on merits.
Sections Cited
Section 144 of the Income Tax Act, 1961
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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