PRATHAMIK SHIKSHAK SAMITICHI PUNE ZILHA PRATHAMIK SHIKSHAN SEVAK SAHAKARI PATASANSTHA MARYADIT,PUNE V. ITO WAED 5(2) PUNE, PUNE

ITA 619/PUN/2025

AI Insights

The case involves Prathamik Shikshak Samitichi Pune Zilha Prathamik Shikshan Sevak Sahakari Patsanstha Maryadit, a credit co-operative society formed by primary teachers, appealing against orders passed by the National Faceless Appeal Centre (NFAC) for the assessment years 2013-14, 2014-15, and 2020-21. The appeals were initially delayed due to administrative oversights and changes in the board of directors, which the ITAT found justifiable. The main contention was the ex-parte nature of the orders passed by the NFAC, which the assessee argued did not allow for a fair hearing on the merits of the case. The ITAT, referencing a decision by the Hon'ble Bombay High Court, emphasized the need for the CIT(A) to decide on the merits even in ex-parte cases and restored the appeals for re-adjudication.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126819 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2020-2021
• Other Referred Cases: Collector, Land Acquisition vs. Mst. Katiji & Ors., PCIT (C) vs. Premkumar Arjundas Luthra (HUF)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AKHILESH SRIVASTAVA
• Assessee Lawyers: PRAMOD S. SHINGTE
• Keywords: Condonation of delay; Set aside; Reasonable cause; Grounds of appeal; Dismissed; National Faceless Appeal; Judgment; HRA; Statistical purposes; Limine; Department; Directors; In Limine; E-mail; Form 3; ADIT
• Section: 143(3); 250

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.617 to 619/PUN/2025 Assessment Years : 2013-14, 2014-15 and 2020-21 Prathamik Shikshak Samitichi Pune Zilha Prathamik Shikshan Sevak Sahakari Patsanstha Maryadit, Shivam Complex, B12, Sr.No.106A/8, Shankar Maharaj Math, Hadapsar, Pune 411 028 Maharashtra PAN : AABAP3089Q Vs. Income Tax Officer, Ward-5(2), Pune Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned three appeals at the instance of assessee pertaining to assessment years 2013-14, 2014-15 and 2020-21 are directed against the separate orders commonly dated 04.10.2023 passed by National Faceless Appeal Centre, Delhi u/s.250 of the Income Tax Act, 1961 (in short ‘the Act’) which inturn are arising out of the respective Assessment orders passed u/s.143(3) of the Act. 2. Registry informed that there is a delay of 430 days in filing of the instant appeals. Applications for condonation of delay Appellant by : Shri Pramod S.Shingte Revenue by : Shri Akhilesh Srivastava Date of hearing : 23.04.2025 Date of pronouncement : 25.04.2025 ITA Nos.617 to 619/PUN/2025 2 along with affidavits have been filed and the reasons stated therein are as under : “The reason for such delay is as follows: o Our credit co-operative is formed by primary teachers of schools run by Zilha Parishad (District administration). From these teachers, in every five years Board of Directors are elected and members of Board of Directors look after various affairs of this credit co-operative society. There is only one clerical staff carrying out the instructions of the members of board. o Initially the society was not having any permanent tax consultant who could advice regarding tax compliances and annual return filing was done with the help of some local tax practitioners. o The current board of directors assumes the charge from 15/06/2023 and when they started getting various notices from income tax department for various demands it was realized that due to various non-compliances with respect to statutory notices certain orders are passed in case of society, which has resulted into piling up of huge demand against the society. After that current board of directors took advise from senior tax consultant, who observed that NFAC has dismissed the appeal for Assessment Year 2013-14 by passing an ex-parte under section 250 dated 04/10/2023, which was against the order passed section 143(3) dated 23/03/2016. Mainly due to this reason there is a filing the appeal before ITAT. o Similarly, email ID referred in form 35 was \"[e-mail] also do not belongs to the society and presumably it belongs to previous tax consultant who has filed appeal in society's case for relevant year, which has also resulted into accessing the order belatedly as no society was not getting intimated over the email.” 3. Ld. Departmental Representative on the other hand opposed the condonation of delay applications. 4. After hearing both the sides and considering the facts and circumstances of the case and we observe that the e-mail id mentioned in Form No.35 was of the erstwhile Tax Consultant and also there was change in the Board of Directors which prevented the assessee from filing the appeals in time. We ITA Nos.617 to 619/PUN/2025 3 further taking liberal approach condone the delay placing reliance on the judgment of Hon’ble Supreme Court in the case of Collector, Land Acquisition vs. Mst. Katiji & Ors. (supra) wherein it was held that when substantial justice and technical considerations are pitted against each other, cause of substantial justice deserves to be preferred for the other side cannot claim to have vested right in injustice being done because of a non- deliberate delay. Refusing to condone delay can result in a meritorious matter being thrown out at the very threshold and cause of justice being defeated. As against this when delay is condoned the highest that can happen is that a cause would be decided on merits after hearing the parties. We thus condone the delay in filing of the instant appeals and admit them for adjudication. 5. At the outset, Ld. Counsel for the assessee submitted that impugned orders are exparte and prayed for restoring the matters to the file of ld.CIT(A) for afresh adjudication. Ld. Departmental Representative fairly did not opposed this request. 6. We have heard the rival contentions and perused the record placed before us. We observe that the assessee has filed the appeals against the orders of the Assessing Officer for the A.Yrs. 2013-14, 2014-15 and 2020-21 before ld.CIT(A) who dismissed the appeals in limine for non-prosecution. Impugned orders are similar except for the change of dates. We also observe that the dates of hearing given to the assessee mostly fell during covid-19 pandemic period. Ld.CIT(A) has not dealt the appeals on merits of the case. Hon’ble Bombay High Court in the case of PCIT (C) vs. Premkumar Arjundas Luthra (HUF) (2017) 297 CTR 614 (Bombay) has held that ld.CIT(A)/NFAC is obliged to dispose of the appeal ITA Nos.617 to 619/PUN/2025 4 on merits even in an exparte order. In view thereof and without dwelling into merits of the issues and considering the submissions of the assessee, we deem it proper to restore the issues on merits for the years under appeal to the file of ld.CIT(A) for necessary adjudication. Assessee is at liberty to adduce evidences in support of its claim for the years under consideration. Ld.CIT(A) may call for a remand report from Ld. Jurisdictional Assessing Officer and after obtaining the comments of the assessee to such remand report, pass a speaking order as contemplated u/s.250(6) of the Act. Needless to say, the assessee will be given reasonable opportunity of hearing. Assessee is directed to provide correct email id and contact detail to the department for receiving the notices from ITBA portal. Assessee is further directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause, failing which the ld.CIT(A) shall be free to proceed in accordance with law. Findings of ld.CIT(A) for the years under appeal are set aside and effective grounds of appeal raised by the assessee on merits in the instant appeals are allowed for statistical purposes. 7. In the result, all the three appeals of the assessee are allowed for statistical purposes. Order pronounced on this 25th day of April, 2025. Sd/- Sd/- (ASTHA CHANDRA) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 25th April, 2025. Satish ITA Nos.617 to 619/PUN/2025 5 आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “SMC” ब\u0014च, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "