ARIHANT KRUPA CO-OPERATIVE HOUSING SOCIETY LTD,NAVI MUMBAI V. CIT APPEAL NFAC, DELHI

ITA 3500/MUM/2024

AI Insights

The case involves M/s. Arihant Krupa Co-operative Housing Society Ltd., which appealed against the order of the National Faceless Appeal Centre/Commissioner of Income Tax (Appeals) for the assessment year 2021-22. The primary issue was the denial of interest income earned from Saraswat Co-operative Bank, which the Assessing Officer had allowed in subsequent years. The Tribunal considered the delay in filing the appeal due to changes in the management committee and the unfortunate demise of the newly appointed treasurer, and found the reasons to be genuine and unintentional. Consequently, the Tribunal allowed the appeal, directing the Assessing Officer to treat the interest income consistently with previous years.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 33837 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 25-11-2024
• Assessment Year: 2021-2022
• Appeal Filed On: 09-07-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SRINIVAS P
• Assessee Lawyers: KEYUR HINDOCHA; LD
• Section: 250

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “SMC”, MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER ITA No.3500/M/2024 Assessment Year: 2021-2022 M/s. Arihant Krupa Co- operative Housing Society Ltd., Plot 40, Sector 27, Kharghar, Navi Mumbai, Maharashtra-410210 PAN: AACAA6426B Vs. CIT Appeal NFAC, Delhi (Appellant) (Respondent) Present for: Assessee by : Shri Keyur Hindocha, Ld. A.R. Revenue by : Shri Srinivas P, Sr. D.R Date of Hearing : 25.11.2024 Date of Pronouncement : 25.11.2024 O R D E R Per : Narender Kumar Choudhry, Judicial Member: This appeal has been preferred by the Assessee against the order dated 09.05.2024, impugned herein, passed by the National Faceless Appeal Centre/Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) under section 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2021-22. ITA No.3500/M/2024 M/s. Arihant Krupa Co-operative Housing Society Ltd. 2 2. There is 1 day delay in filling of this appeal, the same is condoned. 3. At the outset, this Court observed that though in Form No.35, the Assessee in para-no.15, with regard to the delay of 83 days in filing the appeal before the Ld. Commissioner, has submitted as under: “There is a delay in filing the appeal as there was some change in the management committee.” However, the Assessee before the Ld. Commissioner has failed to demonstrate and substantiate the said reason for delay and therefore the Ld. Commissioner dismissed the appeal of the Assessee in limine and without going into the merits of the case. 4. The Assessee therefore being aggrieved in in appeal. The Ld. Counsel Shri Keyur Hindocha demonstrated before this Court that there was some change in the management of the Assessee society and Mr. Lokesh Kumar Jha was appointed as a “Treasurer” to look after the case before the Ld. Commissioner, however, unfortunately Mr. Jha suffered was diagnosed with cancer and ultimately died on 5th June, 2024 and therefore proper and explainable cause remained to be shown before the Ld. Commissioner. 5. The ld. DR though relied on the orders passed by the authorities below and refuted the claim of the Assessee but has not filed any contrary material to contradict the claim of the Assessee. 6. Considering the peculiar facts and circumstances and the reason given by the Assessee as bonafide, unintentional and genuine, this Court is inclined to condone the delay occurred in filing the appeal before the Ld. Commissioner. Thus, the delay of 83 Occurred before Ld. Commissioner, is condoned. ITA No.3500/M/2024 M/s. Arihant Krupa Co-operative Housing Society Ltd. 3 7. Coming to the merits of the case, the Assessee submitted that in the subsequent years, the interest earned from Saraswat Co-operative Bank has been allowed by the Assessing Officer (AO) itself and therefore on the basis of parity, as the Assessee during the AY under consideration has also earned the interest of Rs. 8,97,874 from the same bank and therefore the same may be allowed u/s 80P(2)(d) of the Act. The Ld. DR on the contrary refuted the claim of the Assessee. Considering the peculiar facts and circumstances in totality, as the AO in the subsequent years, has allowed the interest earned from Saraswat Co-operative Bank as involved in this case u/s 80P(2)(d) of the Act and there is no difference in facts and issues except variation in amounts involved in this case and the A.Ys. 2022-23 & 2023-24 and therefore the AO is directed to follow the consistency and consider the claim of the Assessee and allow the same on the same reasoning, as done in the A.Ys. 2022-23 & 2023-24. 8. In the result, the appeal filed by the Assessee stands allowed. Order pronounced in the open court on 25.11.2024. Sd/- (NARENDER KUMAR CHOUDHRY) JUDICIAL MEMBER * Kishore, Sr. P.S. Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench //True Copy// By Order Dy/Asstt. Registrar, ITAT, Mumbai. "