ADARSH CREDIT COOPERATIVE SOCIETY LTD.,AHMEDABAD vs. DCIT, CENTRAL CIRCLE-1, JODHPUR

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 Registrar, De Abhiluksh Likhi & Anr, ordered status quo to be maintained qua Adarsh Credit Cooperative Society Limited which prevented him from taking charge over the affairs of the Co-operative Society and thereafter the Hon'ble Gujarat High Court in SCA 19619 of 2018 vide order dated 06/09/2019 quashed and set aside his appointment as the official liquidator of Adarsh Credit Co-Operative Society Limited.

1 The Ld. AR further submitted that the Central Registrar re-appointed Sh. Hirabhai Somabhai Patel (Retd. IAS) as the official liquidator of Adarsh Credit Co- Operative Society Limited vide order dated 29th November 2019 with intimation to of aforesaid appointment of the Liquidator to Director General of Income Tax (Investigations), Rajasthan vide order dated 29th November 2019 and the new address i.e. the registered office address of the official liquidator was also informed to the board.

4 The AR also stated that the Covid-19 engulfed the country in 2020, and the Hon'ble supreme Court of India vide its order in Suo Moto Writ P/L. 3/2020 extended the limitation period for filling various appeals up to 2022. He emphasized that the Assessment order was passed under section 144 of the Income Tax Act, 1961, invoking provisions of best judgement, an ex-parte order qua the assessee society where the Assessment order indicated the address as ADARSH PRINTER BHAWAN RAJMATA DHARAMSALA, SIROHI 307001, Rajasthan, India, which was seized to be the registered office after appointment of the Official Liquidator. And thus, the order was never communicated before 2023 to the official liquidator who came to know about the said order only after the Tax Recovery Officer initiated recovery proceedings. As soon as the same came to notice of the Official Liquidator, the appeal was compiled and filed. The AR contended that all these details were furnished before the Ld. CIT Appeal, however, having not satisfied rejected the condonation of delay and dismissed

06 PM 09-Sep-2024 01:05 PM 09 Sep-2024 104 01:36 PM 09 Sep-2024 01:06 PM09-Sop op-2024 01:06 PM 09-Sep-2024 01:06 PM 09-Sep-20240 PM (2) Su-2524 01:08 PM 09 Sep-2004 01 06 PM 09 S-2024 0105 P Certificate No. : IN-GJ59714567427278W Certificate Issued Date : 09-Sep-2024 01:06 PM Account Reference : IMPACC (FI)/ gjellmp10/ CITY SRO/GJ-AH Unique Doc. Reference : SUBIN-GJGJELIMP1035950761391209W Purchased by : HS PATEL OFFICIAL LIQUIDATOR ADARSH CREDIT CO OP Description of Document : Article 4 Affidavit Description : AFFIDAVIT Consideration Price (Rs.) : 0 (Zero) First Party : HS PATEL OFFICIAL LIQUIDATOR ADARSH CREDIT CO OP Second Party : Not Applicable Stamp Duty Paid By : H'S PATEL OFFICIAL LIQUIDATOR ADARSH CREDIT CO OP Stamp Duty Amount (Rs.) : 100 (One Hundred only) INDIA NON JUDICIALIN-GJ59714587427278W Government of Gujarat सत्यमेव जयते RS 100 RG. SERIAL No......9. 86. DATE..०५-०५-202. 4. Certificate of Stamp Duty BOOK NO............ PAGE No...... 1.6.2 MITAL M. SAVALIYA NOTARY GOVT. OF INDIA 9 SEP 2024 NOTARY SAVAL AL M. AHMEDABAD GUJARAT STATE ΕΧΡ. ΟΙ. 02/02/2025 OF INDIA GOVT ELPL ELPLELPL ALPL. ELPE HOF 0017566081 HS PAREL OFFICIAL LIQUIDATOR ADARSH CRAY OG OPH SPATEL OFFICIAL LIQUIDATOR ADARSH CREDIT CO CPHS FATEL OFFRYAL LOUJATOR ADARSH CREDIT CO OPHEL OFFICIAL JIDATOR ADARSH Matutory Alor:

The Ld. DR on the other hand, stands by the impugned order.

Heard both the sides, perused the material on record, impugned order, written submission and case law cited before us. The Ld. CIT (A) observed that for assessment year 2012-13, assessment order dated 30.12.2019 was served on Sh. H.S. Patel, the official liquidator of the assessee society on 07.01.2020. Thus, the time limit for filing the appeal expires on 06.02.2020 and the appeal was filed on 17.02.2023 with a delay of 742 days before the CIT Appeal in respect of Assessment Year 2012-13 where an exparte assessment order was passed u/s 144 of the Act by the AO.

The Ld. AR argued that after excluding the Covid -19 period in compliance to Judgement delivered by Hon'ble Supreme Court India vide its order in Suo Moto Writ P/L. 3/2020 extending the limitation period for filling various appeals from 15.03.2020 to 28.02. 2022 and further extended period of 90 days from 01.03.2022, the effective net delay in filing the appeal 280 days only. The counsel contended that the Assessment order was passed under section 144 of the Income Tax Act, 1961, invoking provisions of best judgement, an ex-parte order qua the assessee society where the Assessment order indicated the address as ADARSH PRINTER BHAWAN RAJMATA DHARAMSALA, SIROHI 307001, Rajasthan, India, which was seized to be the registered office after appointment of the Official Liquidator. However, the Hon'ble Gujarat High Court vide order dated 20th December 2018 in SCA 19619 of 2018 Jamil Ahmed, Director, Adarsh Credit Co-Operative Society Ltd v. Central Registrar, De Abhiluksh Likhi & Anr, ordered status quo to be maintained qua Adarsh Credit Cooperative Society Limited which prevented him from taking charge over the affairs of the Co- operative Society and thereafter the Hon'ble Gujarat High Court in SCA 19619 of 2018 vide order dated 06/09/2019 quashed and set aside his appointment as the official liquidator of Adarsh Credit Co-Operative Society Limited.

Thus, the observation of the Ld. CIT appeal that assessment order dated 30.12.2019 was served on Sh. H.S. Patel, on assuming charge of the official liquidator of the assessee society on 07.01.2020 is factually incorrect because the order was never communicated before 2023 to the official liquidator who came to know about the said order only after the Tax Recovery Officer initiated recovery proceedings on his assuming charge as Official liquidator legally and the appeal was filed. The case laws relied by the Ld. CIT(A) as referred by the Ld. DR are distinguishable on peculiar facts of the present case.

He further argued that the liquidator was in the process of taking charge of the operations of Adarsh Credit Cooperative Society Limited from December 2019 to March 2020, and he was unable to file an appeal against the said order within the limitation period prescribed in law for the aforesaid reasons which are duly supported and substantiated with affidavit of the Liquidator as above. The AR further argued that qua the delay in filing of appeal for Assessment Years 2013-14 to 2019-20, the said orders were never served on the liquidator unlike the assessment order for Assessment year 2012-13. The assessment orders for the Assessment Years 2013-14 to 2019-20 were served at the branch office of Adarsh Credit Co-Operative Society Limited, located at Adarsh Printer Bhawan, Rajmata Dharamsala, Sirohi 307001, and these The premises were rented and not under control or supervision of liquidator. It is also pointed out that premise was closed following the arrest of Rahul Modi, the former Managing Director & CEO of Adarsh Credit Co-Operative Society Limited. due to nonpayment of rent by Adarsh Credit Co-Operative Society Limited since March 2019, due to liquidity issues. It is noted that the registered office of Adarsh Credit Co-Operative Society Limited was shifted to Ahmedabad at Second Floor, 14 Vidya Vihar Colony. Opposite Hotel Fortune Landmark, Usmanpura, Ahmedabad-380013, Gujarat on 16th September 2015 and that liquidator did not have access to the departmental portal as he has no credentials of the portal updated and so as to gain access to the Income Tax Portal.

Thus, the official liquidator of the appellant assessee society did not know about the assessment order passed so as to enable him to file appeal before the CIT(A) who has dismissed the appeal of the assessee only on account of a delay in filing of appeal without considering the fact demonstrating the sufficient cause for the delay duly supported with documentary evidence filed before him with the request letter for said delay along with FORM-35. 8. Without prejudice to the above, the Ld. AO passed the assessment order on 30.12.2019 and in the month of March 2020, COVID-19 broke out with lockdown in succession. Resultantly, the net delay in filing the appeal before the Ld. CIT(A) was to be counted to 280 days only, and considering the aforesaid reasons the appellant was prevented by sufficient cause for the delay in filing

Considering the factual matrix and judicial precedent, we consider it appropriate to condone the net delay of only 280 days in the case of the assessee society in respect to assessment year 2012-13. Accordingly, the appeal of the assessee is admitted and restored to the file of the Ld. CIT(A) to be adjudicated de novo on merits of the case after affording adequate opportunity of being heard. The appellant undertakes that due compliance will be made during the appellate proceedings.

The facts and issue in ITA No. 6 to 12/Jodh/2024 are identical to the facts and issue discussed in ITA No. 5/Jodh/2024 except the variation in days of delay rather less in number in filing appeal before the CIT (A). Therefore, our observation and findings given in the appeal in ITA No. 5/Jodh/2024 shall apply to the other appeals in ITA No. 6 to 12/Jodh/2024, in mutatis mutandis, ordered accordingly.

In the result, these appeals filed by the assessee are allowed for statistical purposes. Order pronounced on../7/..2/12025 under Rules 34(4) of Income Tax Appellate Tribunal Ruled. (RAJPAL YADAV) AVICE PRESIDENT (DR. MITHA LAL MEENA) ACCOUNTANT MEMBER Dated 17../../2025 Copies to: (1) The appellant. (2) The respondent. (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By Oder Assistant Registrar, Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur.