S-681, CHINNATHIRUPATHY PACB LTD.,CHENNAI vs. ITO, SALEM

Both the appeals of the independent assessees are directed against the respective orders of the Commissioner of Income Tax (Appeals), Salem, dated 27.10.2015 and pertain to assessment year 2011-12. Since common issue arises for consideration in these appeals, we heard both the appeals together and disposing of the same by this common order.

There was a delay of 17 days in filing both the appeals. The Ld.counsel for the assessee explained that the assessees being co- operative societies, had to get approval from the Board for filing appeals before this Tribunal. Therefore, there was a delay in filing these appeals. We heard Ld. Departmental Representative also.

Shri S. Sridhar, the Ld.counsel for the assessee, submitted that there was a delay of 190 days in filing both the appeals before the CIT(Appeals). The CIT(Appeals), however, refused to condone the delay. According to the Ld. counsel, the co-operative society is managed by a Board. Obtaining approval from the Board delayed the process of filing the appeals. Therefore, according to the Ld. counsel, the delay was beyond the control of the assessee.

We heard Shri Shiva Srinivas, the Ld. Departmental Representative, also. According to the Ld. D.R., the procedure for filing of the appeals after getting approval from the Board is irrelevant as far as the Income-tax Act is concerned. It is for the assessee to get necessary approval from the concerned authority and file the appeals within the time prescribed under the Income-tax Act. Therefore, there was no reasonable cause on the part of the assessee for not filing the appeals within the prescribed period before the CIT(Appeal). Therefore, according to the Ld. D.R., the CIT(Appeals) has rightly refused to condone the delay.

We have considered the rival submissions on either side and perused the relevant material available on record. Normally, co- operative society is administered by the elected representatives of the members. From the material available on record it appears that the elected representatives of the members were superceeded and the administration was handed over to the Board. Therefore, the assessee had to necessarily obtain approval from the Board for filing the appeals. This Tribunal is of the considered opinion that the time limit prescribed under the Income-tax Act for filing appeal before this Tribunal will not create any vested interest on the income-tax authorities. It is only to bring the litigation to an end within the time prescribed. Even though the limitation prescribed is expected to be followed by both the parties, this Tribunal is of the considered opinion that the delay in getting the approval of the Board in filing the appeals is reasonable cause for not filing the appeals within the specified period. Therefore, the assessees were beyond their control in filing the appeals. Hence, the CIT(Appeals) is not justified in rejecting the petition for condonation of delay.

Accordingly, the orders of the lower authority are set aside and the delay of 190 days is condoned and the appeals stand restored in the file of the CIT(Appeals).

In the result, both the appeals of the assessees are allowed.