THE CHANGANACHERY NORTH SERVICE CO OPERATIVE BANK NO 3849,VAZHAPPALLY-CHANGANACHERRY vs. INCOM TAX OFFICER, THIRUVALLA

It emerges during the course of hearing at the outset that there is hardly any need for us to delve with the relevant factual matrix at length once it has come on record that CIT(A)/NFAC has dismissed assessee’s appeal on account of undue delay in filing the appeal.

The Revenue vehemently submits that the Assessing Officer had framed the impugned assessment on 28.01.2021; followed by assessee having filed it's lower Changanachery North Service Co-op. Bank Ltd. appeal on 21.07.2023 with a delay of 875 days [including Covid-19 pandemic). Going by the decision in the case of Collector Land Acquisition vs. Mst. Katiji & Ors (1987) 167 ITR 471 (SC) settling the issue long back that that all such technical aspects must make way for the cause of substantial justice and as per the assessee's condonation averments herein; the above delay is condoned.

We note that the learned CPC's sec.143(1)(a)(v) "processing" dated 03.01.2021 had in fact disallowed the assessee's sec.80P(2) deduction claim of Rs. 1,40,52,151/-; which was confirmed by the CIT(A)-NFAC. We note in this factual backdrop that the legislature has amended section 143(1)(a)(v) enabling provision to this effect by way of amendment in the Finance Act, 2021 w.e.f. 01.04.2021 whereas the impugned assessment order is AY 2019-20. Meaning thereby that both the learned lower authorities could not have invoked s.143(1)(a)(v) "processing" retrospectively for disallowing assessee's impugned section 80P deduction. We accept the assessee's instant substantive ground in very terms. Ordered accordingly.