PANCHSHEEL HEIGHTS C & D CO OP HOUSING SOCIETY LIMITED ,MUMBAI V. ITO WARD 42(1)5, MUMBAI

ITA 1507/MUM/2025

AI Insights

The case involves Panchsheel Heights C & D Co-op Housing Society Ltd., the appellant, challenging an order passed by the National Faceless Appeal Centre, Delhi, which was time-barred by 1104 days. The primary contention was the ignorance of the society's office bearers regarding income tax matters and the delayed realization of the order's impact when recovery notices were received. The Tribunal considered the precedents and the circumstances under which the delay occurred, deciding to restore the matter to the CIT(A) for a decision on merits after imposing a cost for non-cooperation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312776 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Other Referred Cases: PCIT Vs. Shree Aradhan Urban Co-op Credit Society Ltd., 2025 (3) TMI 411 (GJ)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVINASH KARPE
• Assessee Lawyers: NISHIT GANDHI
• Keywords: Condonation of delay

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH MUMBAI BEFORE HON’BLE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER ITA No. 1507/Mum/2025 (Assessment Year: 2014-15) Panchsheel Heights C & D Co-op Housing Society Ltd., Society Office, 90 Feet Road, Mahavir Nagar, Kandivali (W), Mumbai – 400067. Vs. ITO 42(1)(5) Kautilya Bhavan, BKC Mumbai – 400051. PAN/GIR No. AAAAP7366B (Applicant) (Respondent) Assessee by Shri Nishit Gandhi a/w Ms. Aadnya Bhandari Revenue by Shri Avinash Karpe, Sr. DR Date of Hearing 29.04.2025 Date of Pronouncement 29.04.2025 आदेश / ORDER PER SANDEEP GOSAIN, JM: The present appeal has been filed by the assessee challenging the impugned order 04.02.2025 passed u/s 250 of the Income Tax Act, 1961 (‘the Act’), by the National Faceless Appeal Centre, Delhi (NFAC) for the assessment year 2014-15. 2. From the records, I noticed that appeal of the assessee was rejected by Ld. CIT(A) as the same was time barred and there was inordinate delay of 1104 days in filing the appeal. In this regard Ld. AR reiterated the 2 ITA No. 1507/Mum/2025 Panchsheel Heights C & D Housing Society, Mumbai same arguments as were raised by him before Ld. CIT(A) and also relied upon his submissions for condonation of delay dated 20.02.2018 filed before Ld. CIT(A). 3. On the other hand Ld. DR contested the said appeal and requested for dismissal of the same. 4. After having heard both the parties and after perusal of the material placed on record as well as orders passed by the revenue authorities. I noticed from the records that assessee had sought condonation of delay on the ground that intimation u/s 143(1) of the Act was sent on the email. As the office bearers of the assessee were ignorant about income tax, even chartered accountant who had filed the Return of Income was not responding and had left the job. It was submitted that the assessee came to know about the passing of order / intimation when they received recovery notice and the bank accounts were attached. Thereafter they approached Mr. Nitin R Goradia, Chartered Accountant who helped the assessee in income tax matters and getting the bank accounts released and also filed rectification application before the AO which was rejected and only thereafter the appeal before Ld. CIT(A) was filed. Further the Ld. Ld.AR has relied upon the decision of Hon’ble High Court of Gujarat in the case of PCIT Vs. Shree Aradhan Urban Co-op Credit Society Ltd., 2025 (3) TMI 411 (GJ). 3 ITA No. 1507/Mum/2025 Panchsheel Heights C & D Housing Society, Mumbai 5. Considering the fact that the issues raised before Ld. CIT(A) has already been adjudicated by different judicial authorities in favour of the different assessees therefore keeping in view this fact that assessee has good case on merits and without going into the merits of the allegations and counter allegations, on the plea of the condonation of delay the bench is of the view that the ends of justice would be met only if the issues between the parties are decided on merits after providing fair opportunity of hearing. 4. Be that as it may, keeping in view the above position in mind, I am inclined to provide one more opportunity to the assessee to prove his case before the revenue authorities. Therefore, the present appeal is restored back to the file of Ld. CIT(A) subject to cost of Rs.5000 imposed upon the assessee for his non-cooperation. This amount shall be deposited in the Prime Minister Relief Fund and a copy of the receipt shall be placed on file before Ld.CIT(A) within 30 days from the date of receipt of this order for fresh adjudication on merits by providing opportunity of hearing to the parties. The assessee shall not seek any adjournment on frivolous grounds and remain cooperative during the course of proceedings. 4 ITA No. 1507/Mum/2025 Panchsheel Heights C & D Housing Society, Mumbai 5. Before parting, I make it clear that our decision to restore the matter back to the file of Ld.CIT(A) shall in no way be construed as having any reflection or expression on the merits of the dispute which shall be adjudicated by the Ld. CIT(A) independently in accordance with law. 6. In the result, the appeal filed by the assessee stands allowed for statistical purposes. Order pronounced in the open court on 29.04.2025. Sd/- (SANDEEP GOSAIN) JUDICIAL MEMBER Mumbai, Dated 29/04/2025 KRK, PS आदेश की \bितिलिप अ\u000eेिषत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. \u000eथ / The Respondent. 3. संबंिधत आयकर आयु\u0019 / The CIT(A) 4. आयकर आयु\u0019(अपील) / Concerned CIT 5. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, मु\u0003बई / DR, ITAT, Mumbai 6. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, स\u000eािपत ित //True Copy// 1. उप/सहायक पंजीकार ( Asst. Registrar) आयकर अपीलीय अिधकरण, मु\u0003बई मु\u0003बई मु\u0003बई मु\u0003बई / ITAT, Mumbai "