The Karad Merchants Credit Co-OP Society Ltd, Satara V. Income-tax Officer, Ward - 1, Satara

ITA 218/PUN/2019

AI Insights

The case involves The Karad Merchants Credit Co-Op. Society Ltd., which appealed against the order of the CIT(A)-2, Pune, concerning the assessment year 2011-12. The primary issues in the appeal were the delay in filing and the disallowance of deductions and audit fees. The Tribunal noted a significant delay of 958 days in filing the appeal, which was explained by the assessee due to ongoing rectification proceedings. The Tribunal accepted the explanation and allowed the condonation of delay. The substantive issues included the disallowance of a deduction under section 80P(2)(a)(i) and the disallowance of audit fees under section 43B, both of which were contested in the lower proceedings.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 134363 (ITAT-PUNE)
• Duration Of Justice: 12 year(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-11-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 10-10-2022
• Assessment Year: misc
• Appeal Filed On: 06-11-2010
• Other Referred Cases: Collector Land Acquisition V/s. Mst. Katiji & Others (1987) 167 ITR 471 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 154; 43B; 143(3)

Judgement Text

आयकर अपीलीय अिधकरण “बी” ᭠यायपीठ पुणे मᱶ । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, PUNE BEFORE SHRI S.S.GODARA, JM AND SHRI DR. DIPAK P. RIPOTE, AM आयकर अपील सं./ ITA No.218/PUN/2019 िनधाᭅरण वषᭅ / Assessment Year : 2011-12 The Karad Merchants Credit Co-Op. Society Ltd., 7,8, Somwar Peth, Karad, Tal – Karad, Dist - Satara Pin -415 110 PAN : AAAAT0955A .......अपीलाथᱮ / Appellant बनाम / V/s. ITO, Ward-1, Satara ......ᮧ᭜यथᱮ /Respondent Assessee by : Smt. Deepa Khare Revenue by : Shri M.G.Jasnani सुनवाई कᳱ तारीख / Date of Hearing : 11.10.2022 घोषणा कᳱ तारीख / Date of Pronouncement : 17.11.2022 आदेश / ORDER PER S. S. GODARA, JM : 1. This assessee’s appeal for AY 2011-12 arises against the CIT(A)-2, Pune’s order dated 29/03/2016 passed in case No. PN/CIT(A)-2/ITO Wd-1 /Sat/292/2011-12 involving proceedings u/s 143(3) of the Income Tax Act, 1961; in short "the Act”. Heard both the parties. Case file perused. 2 ITA No.218/PUN/2019, A.Y. : 2011-12 The Karad Merchants Credit Co-Op. Society Ltd., 2. It emerges during the course of hearing that the assessee’s instant appeal suffers from 958 days delay in filing. A perusal of its condonation petition dated 07.07.2022 reveals that after the CIT(A)’s order dated 29.03.2016, it had filed section 154 rectification dated 27.04.2016 which had not been decided as on the date of institution herein dated 07.02.2019. The assessee further pleads that it had also submitted a reminder (copy enclosed) dated 19.11.2018 before the CIT(A) to the very effect. All these factual averments sufficiently indicate that the assessee was pursuing it’s rectification remedy all along and the impugned delay is neither institutional nor deliberate but on account of pendency of the said proceeding only. Faced with this situation, we quote hon’ble apex court’s landmark decision Collector Land Acquisition V/s. Mst. Katiji & Others (1987) 167 ITR 471 (SC) setting the law long back that such all technical aspects must make way for the cause of substantial justice. The assessee’s instant condonation petition is accepted. The case is now taken up for adjudication on merits. 3. Learned counsel next pleads that the assessee does not wish for its former substantive ground claiming section 80P(2)(a)(i) deduction disallowance involving correct claim of Rs.4,85,47,475/- in light of CIT(A)’s favourable adjudication in the forgoing rectification. This first and foremost ground is dismissed as not pressed in above terms. 4. Next comes that the assessee’s latter subsequent ground seeking to delete section 43B Audit Fees disallowance of Rs.11,49,041/- made in both the lower proceedings. A perusal of the CIT(A)’s order in page 5 para 5 3 ITA No.218/PUN/2019, A.Y. : 2011-12 The Karad Merchants Credit Co-Op. Society Ltd., suggests that he has nowhere adjudicated the same. The very factual position continues in assessee’s forgoing rectification petition (supra) as well. We thus restore the instant latter subsequent ground back to the CIT(A) for his appropriate jurisdiction as per law. Ordered accordingly. 5. This assessee’s appeal is partly allowed for statistical purposes in above terms. Order pronounced in the Open Court on this 17 th day of November, 2022. Sd/- Sd/- (DR.DIPAK P.RIPOTE) (S.S. GODARA) लेखा सद᭭य/ ACCOUNTANT MEMBER ᭠याियक सद᭭य/JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 17 th November, 2022. Ashwini/Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A)-2, Pune. 4. The Pr.CIT-3, Pune. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “बी” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.