NEW NAVHIND MULTIPURPOSE MULTISTATE CO-OPERATIVE SOCIETY,BELAGAVI V. INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, DELHI

ITA 256/PAN/2025

AI Insights

The case involves New Navhind Multipurpose Multi State Cooperative Society, which appealed against the order of the National Faceless Appeal Centre (NFAC) / CIT(A) concerning the disallowance of a deduction under section 80P of the Income Tax Act. The primary contention was the CIT(A)'s dismissal of the appeal due to a delay of 1358 days in filing, which the assessee argued was due to circumstances beyond their control. The Tribunal found merit in providing the assessee another opportunity to explain the delay and to substantiate their case on merits, emphasizing the principles of natural justice and adequate opportunity of hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 784610 (ITAT-PANAJI)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 26-08-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIJULA UNIYAL.
• Assessee Lawyers: PRAMOD Y VAIDYA
• Keywords: Condonation of delay; Set aside; Proportionate interest; Reasonable cause; Principle of natural justice
• Section: 142(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER I T A. Nos. 256/PAN/2025 (A.Y.2018-19) New Navhind Multipurpose Multi State Cooperative Society Plot.No.22, R.S.No.4/1A Adarshnagar Main road, Vadgaon Belagavi-590005, Karnataka. Vs . National Faceless Assessment Centre, New Delhi-110003. PAN/GIR No. AAAAN2518B (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) Assessee by Shri.Pramod Y Vaidya.AR Revenue by Smt.Rijula Uniyal.Sr.DR सुनवाई की तारीख/Date of Hearing 13.11.2025 घोषणा की तारीख/Date of Pronouncement 13.11.2025 ORDER PER PAVAN KUMAR GADALE JM: The appeal is filed by the assesse against the order of National Faceless Appeal Centre (NFAC) Delhi / CIT(A) passed u/sec143(3)r.w.s143(3A)&143(3B) and U/sec 250 of the Act. The assesse has raised the grounds of appeal challenging the order of the CIT(A) in not condoning the delay in filling the appeal and sustaining the disallowance of deduction u/sec80P of the Act by the Assessing Officer. 2. At the time of hearing, the Ld.AR of the assessee submitted that there is a delay of 89 days in filing the appeal before the Hon’ble Tribunal and the assesse has Printed from counselvise.com 2 ITA. No.256/PAN/2025 New Navhind Multi purpose Multi State Cooperative society. filed the affidavit for condonation of delay. Whereas, the facts mentioned in the affidavit are reasonable and the Ld. DR has no specific objections. Accordingly, condone the delay and admit the appeal. 3. The brief facts of the case are that, the assessee is a cooperative society. The assesse has filed the return of income for the A.Y 2018-19 on 16.10.2018 disclosing a total income of Rs. Nil after claiming deduction u/sec 80P of the Act of Rs.65,00,649/-. Subsequently the case was selected for complete scrutiny under CASS and notice u/sec143 (2) and u/sec 142(1) of the Act are issued calling for details in respect of claims and the information supporting the return of income filed. The assesse has filed the details and the Assessing Officer (A.O) has dealt on the submissions/details and find that the assesse has invested surplus amounts under various categories of fixed deposits in the nationalized banks and other banks and earned interest income. Whereas the A.O. has dealt on the facts of interest and calculated proportionate interest expenses dealt at Para 5 of the order and disallowed the claim to the extent of Rs.13,01,254/- and assessed the total income of Rs.13,01,250/-and passed the order u/sec143(3) r.w.s143(3A)&143(3B) of the Act dated 02.03.2021. 4. Aggrieved by the order, the assessee has filed an appeal before the CIT(A),whereas the CIT(A) find that there is a delay of 1358 days in filling the appeal and the assessee Printed from counselvise.com 3 ITA. No.256/PAN/2025 New Navhind Multi purpose Multi State Cooperative society. has not filed/ explained the sufficient reasons/cause for the delay and the CIT(A) has dismissed the assessee appeal in limine. Aggrieved by the CIT(A)order, the assessee has filed an appeal before the Hon’ble Tribunal. 5. At the time of hearing, the Ld. AR submitted that the CIT(A) has not considered the facts that the assessee has received the A.O order and has filed the appeal before appellate authorities and the delay was not a wanton act but the circumstances beyond the control of the assessee. Further the Ld.AR emphasized that the assessee has good case on merits and prayed for an opportunity to substantiate with the material evidences before the lower authorities. Per Contra, the Ld. DR supported the order of the CIT(A). 6. Heard the rival submissions and perused the material on record. Prima-facie, the CIT(A) has passed the order considering the fact that there is no proper compliance by the assesse in spite of providing adequate opportunity of hearing and the delay in filling the appeal was not explained with the reasonable cause and the appeal was dismissed on the ground of delay. Whereas the assessee has raised grounds of appeal challenging the disallowance made by the A.O and there could be various reasons for no proper compliance. Whereas the affidavit and application U/sec 249(3) of the Act for condonation of delay of in filling the appeal was not filed before the CIT(A) by the Printed from counselvise.com 4 ITA. No.256/PAN/2025 New Navhind Multi purpose Multi State Cooperative society. assessee. Hence considering the facts, circumstances and principles of natural justice, shall provide with one more opportunity to the assessee to file the application for condonation of delay before the CIT(A) explaining the sufficient and reasonable cause and the CIT(A) should fallow a pragmatic approach for condonation of delay and in accordance with the provisions of law. Accordingly, set aside the order of the CIT(A) and remit the disputed issue to the file of the CIT(A) to adjudicate afresh on merits after considering the application of condonation of delay. The assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of appeal and the grounds of appeal of the assessee are allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 13/11/2025 as per rule 34(5) of the ITAT Rules 1963. Sd/- (PAVAN KUMAR GADALE) JUDICIAL MEMBER Panaji Dated: 13/11/2025 Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- Printed from counselvise.com 5 ITA. No.256/PAN/2025 New Navhind Multi purpose Multi State Cooperative society. 4. CIT 5. DR, ITAT 6. Guard file. //True Copy// BY ORDER, (Asstt. Registrar)ITAT, Panaji Date Initial 1. Draft dictated on PS 2. Draft placed before author PS 3. Draft proposed & placed before the second member PS 4. Draft discussed/approved by Second Member. PS 5. Approved Draft comes to the Sr.PS/PS PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed Printed from counselvise.com 6 ITA. No.256/PAN/2025 New Navhind Multi purpose Multi State Cooperative society. Printed from counselvise.com "