SEHKARI GANNA VIKAS SAMITI LIMITED SUAR,RAMPUR V. ITO , RAMPUR

ITA 924/DEL/2024

AI Insights

The case involves Sekhari Ganna Vikas Samiti Ltd., a cooperative society of farmers, which appealed against the order of the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, Delhi. The society had filed its return declaring a nil income after claiming a deduction under section 80P of the Income Tax Act, 1961. The Assessing Officer disallowed part of the deduction and added some rental income, leading to an appeal that was initially dismissed by the CIT(A) due to being time-barred. The Tribunal's decision to condone the delay and restore the appeal was based on the need to advance substantial justice rather than adhere strictly to procedural technicalities.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 298878 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 01-10-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 27-02-2024
• Other Referred Cases: Collector Land Acquisition vs. Mst. Katiji & Ors., Ram Nath Sao @ Ram Nath Sahu And Others vs Gobardhan Sao and Others
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY KUMAR
• Assessee Lawyers: S IBAD MUSHTAQ; F.A AYYUBI; ADVOCATES
• Keywords: Condonation of delay; Set aside
• Section: 143(3); 22; 80P

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “एसएमसी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER आअसं.924/िदʟी/2024 (िन.व. 2020-21) ITA No.924/DEL/2024 (A.Y.2020-21) Sekhari Ganna Vikas Samiti Ltd., Village Dhanori, Suar, Rampur, UP 244924 PAN: AAFTS-7805-L ...... अपीलाथᱮ/Appellant बनाम Vs. Income Tax Officer, Shaadi Nagar, Rampur, Uttar Pradesh 244901 ..... ᮧितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by : S/Shri Ibad Mushtaq, & F.A Ayyubi, Advocates ŮितवादीȪारा/Respondent by : Shri Sanjay Kumar , Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 01/10/2024 घोषणा कᳱ ितिथ/ Date of pronouncement : : 01/10/2024 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as 'the CIT(A)') dated 26.12.2023, for assessment year 2020-21. 2. The ld. Counsel for the assessee submits that assessee is a cooperative society of farmers registered under Cooperative Societies Act. The assesssee has 2 ITA No. 924/Del/2024 (AY 2020-21) filed its return of income for the impugned assessment year declaring total income as Nil, after claiming deduction of Rs.1,16,59,419/- u/s. 80P of the Income Tax Act, 1961(hereinafter referred to as 'the Act’). During assessment proceedings the Assessing Officer (AO) disallowed assessee’s claim of deduction of interest income Rs. 12,18,305/- u/s. 80P of the Act and also made addition of rental income Rs.24,000/- . Aggrieved by the assessment order dated 06.09.2022 passed u/s. 143(3) r.w.s. 144B of the Act, the assessee filed appeal before the CIT(A). The appeal filed by the assessee before the CIT(A) was time barred by 236 days. The assessee filed application for condonation of delay giving reasons for delay in filing of appeal. The CIT(A) without appreciating the reasons dismissed appeal of assessee in limine on the ground of limitation. Hence, this appeal by the assessee. 3. Per contra, Shri Sanjay Kumar representing the department submitted that the CIT(A) has considered the assessee application for condonation of delay. The CIT(A) after examining the same came to the conclusion that the reasons given by the assessee does not reflect “sufficient cause” for delay in filing of appeal. He prayed for upholding the impugned order and dismissing appeal of the assessee. 4. Both sides heard, order of the authorities below examined. This appeal by the assessee is against the order of CIT(A) dismissing appeal of the assessee on the ground of limitation. The Hon’ble Apex Court in various decisions has held that acceptance of explanation furnished for delay should be the rule and refusal, an exception. The explanation causing condonation of delay should not be rejected taking a hyper technical and Pedantic approach. 3 ITA No. 924/Del/2024 (AY 2020-21) 5. The Hon’ble Apex Court in the case of Collector Land Acquisition vs. Mst. Katiji & Ors. 1987 taxmann.com 1072 has held that liberal approach should be adopted while dealing with an application praying for condonation of delay. Refusing to condone delay can result in meritorious matter being thrown out at the very threshold and cause of justice being defeated. Pedantic and hyper technical approach should not be adopted while dealing with an application for condonation of delay. 6. The Hon’ble Apex Court in the case of Ram Nath Sao @ Ram Nath Sahu And Others vs Gobardhan Sao and Others has held that the expression “sufficient cause” within the meaning of Section 5 of the Limitation Act or Order 22 Rule 9 of CPC or any other similar provision should receive a liberal construction so as to advance substantial justice. The courts should not proceed with the tendency of finding fault with cause shown and reject the petition by a slipshod order in over jubilation of disposal derive. Acceptance of explanation furnished should be the rule and refusal, an exception, more so when no negligence or inaction or want of bonafides can be imputed to the defaulting party. 7. In view of the law expounded by the Hon’ble Apex Court in dealing with condonation application and considering the reasons given by the assessee causing delay in filing of appeal before the First Appellant Authority, the delay for 236 days in filing of appeal is condoned. The appeal is restored to CIT(A) for fresh adjudication on merits after affording reasonable opportunity of making submissions to the assessee in accordance with law. 4 ITA No. 924/Del/2024 (AY 2020-21) 7. In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on Tuesday the 01st day of October, 2024. Sd/- Sd/- (VIKAS AWASTHY) ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 01/10/2024 NV/- ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI "