SILVER CASCADE COOPERATIVE HGS. SOC.LTD,MUMBAI V. DCIT, CIRCLE 2(3)(1), MUMBAI

ITA 145/MUM/2025

AI Insights

The case involves Silver Cascade Co-operative Housing Society Ltd., which appealed against the orders of the National Faceless Appeal Centre (NFAC), Delhi, for the assessment years 2018-19 and 2020-21. The appeals were initially delayed due to administrative oversights and COVID-19 related disruptions. The Tribunal found that the delays were not due to any malafide intention of the assessee and thus condoned the delays. The main legal contention revolved around the assessee's claims under Section 80P of the Income Tax Act, which were not adequately addressed in the initial assessments. The Tribunal, referencing the principles laid down by the Supreme Court in the case of Collector Land Acquisition Vs. Mst. Katiji & Ors., emphasized the need to do substantial justice by considering the appeals on their merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 30402 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: H
• Assessment Year: 2018-2019
• Other Referred Cases: Collector Land Acquisition Vs. Mst. Katiji & Ors.
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PRAVIN SALUNKHE
• Assessee Lawyers: SUNIL GUJAR
• Keywords: Condonation of delay; Opportunity of being heard; Additional evidence; Reasonable cause; Period of limitation
• Section: 143(3); 142(1); 119; 80P

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “H (SMC)” BENCH, MUMBAI BEFORE SMT. BEENA PILLAI (JUDICIAL MEMBER) AND SHRI OMKARESHWAR CHIDARA (ACCOUNTANT MEMBER) I.T.A. No.145/Mum/2025 Assessment Year: 2018-19 & I.T.A. No.146/Mum/2025 Assessment Year: 2020-21 Silver Cascade Co- operative Hsg. Soc. Ltd. 223 Silver cascade cooperative Hsg. Soc. Ltd. Mount Mary Road, Bandra (W), Mumbai 400050 PAN: AAAAS9833N Vs Deputy Commissioner of Income Tax, Circle- 2(3)(1), Mumbai Piramal Chamber, Lalbaugh, Mumbai 400012. (Appellant) (Respondent) Appellant by Shri. Sunil Gujar Respondent by Shri. Pravin Salunkhe, Sr. DR Date of Hearing 25.03.2025 Date of Pronouncement 04.04.2025 ORDER Per: Smt. Beena Pillai, J.M.: The present appeals arises out of separate orders dated 11/11/2024 and 13/11/2024, passed by NFAC, Delhi for Assessment Year 2020-21 and 2018-19, respectively. 2. At the outset the Ld.AR submitted that, there is a delay of 190 days in filing appeal for assessment year 2020-21 and 260 days in filing appeal for the assessment year 2018-19. 2 I.T.A. No.145 & 146/Mum/2025 AY:2018-19 & 2020-21 Silver Cascade Co-operative Hsg. Soc. Ltd 2.1. In respect of appeal for the assessment year 2018-19 the Ld. AR submitted that, assessment order was passed on 17/04/2021 and assessee had filed an appeal before the Ld.CIT(A) within the period of limitation and that there was no delay originally. The assessee has also placed on record, acknowledgment of the appeal that was filed within the period of limitation for assessment year 2018-19. 2.2. Subsequently, the assessee realised that the appeal filed within the period of limitation was not showing on the Income Tax Portal. The assessee thus, immediately filed appeal before the Ld.CIT(A) causing delay of 256 days. The Ld.AR submitted that, assessee realised about the appeal not showing on the Income Tax Portal only when he received demand notice for assessment year 2018-19 on 16/04/2021. 2.3. In support of the above submission affidavit of the treasurer of assessee is scanned and reproduce as under: “I Shri Cawas Kharadi, son of Gayo Ardeshir Kharadi, Indian inhabitant, do hereby state confirm on Oath that: 1. I am the Honorary Treasurer of the Silver Cascade CHS Ltd. 2. I in my capacity as the Treasurer of the society, do hereby state and confirm that: a. Silver Cascade CHS Ltd. is a non-profit making housing society and does not have a fulltime employee as well as have not hired any professional Chartered Accountant on retainer basis for income tax matters. b. There was delay in submission of details as required by Income tax Officer, National e-Assessment Centre hereinafter referred to as \"Assessing Officer\" on 18/02/2021 since the required bank certificates were not received by the society due to covid as well as resignation of the erstwhile treasurer of the society. c. The society had filed an appeal in Form 35 before the Commissioner of Income-tax (Appeals) Income Tax Department hereinafter referred to as \"CIT (A)\" for AY 2018- 19 on 17/04/2021 and the Income tax acknowledgement for 3 I.T.A. No.145 & 146/Mum/2025 AY:2018-19 & 2020-21 Silver Cascade Co-operative Hsg. Soc. Ltd the same is 342533050170421, but the same appeal got deleted from the income tax portal for the reasons which we are not aware of. d. So, the appeal before CIT(A) for AY 2018-19 was again filed for a second time on 27/12/2021 resulting in a technical delay of 256 days [286 days (16/03/2021 το 27/12/2021)-30days). e. The society requested for condonation of delay in Appeal Filed before CIT(A) in Form 35 before the CIT (A). f. The society had submitted the bank statements, certificate, society registration certificate, etc, as requested for by the Assessing Officer along with appeal in Form 35 before the CIT(A) as additional evidence. g. The Form 35 for AY 2018-19 was filed wherein the contact details mentioned are Email: [e-mail] and Telephone No. 9322286734 and landline No. 022- 2411454. h. I do hereby state and confirm in my capacity as a Treasurer of the society that the society had not received any communication or Notice or Letter from CIT (A) regarding the hearings fixed for the above mentioned Ay 2018-19 on 15.11.2022, 18.07.2024, 29.07.2024, 08.10.2024 or 28.10.2024. i. The society had received a notice u/s 142(1) for AY 2020- 21 from the Assessing Officer on 3/12/2021 and accordingly replied on 10/12/2021. j. I do hereby State and confirm in my capacity as a Treasurer of the society that the society had not received the show cause notice for Ay 2020-21 dated 20/9/2022 and assessment order uls 143(3) for AY 2020-21 dated 27/09/2022 from the Assessing Officer. k. I do hereby state and confirm in my capacity as a Treasurer of the society that subsequently a Show Cause Notice was received on 21/2/2023 which brought our attention to the Assessment order passed against the society. The society thereupon immediately filed an appeal on 23/2/2023 as soon as they came to know about the demand raised against the society. l. So, the appeal before CIT(A) for Ay 2020-21 was filed on 23/02/2023 with a delay of 119 days [149 days (27/09/2022 to 23/02/2023) - 30days] m. I further state and confirm that the Society had a Honorary Treasurer Mr. Riyaz during the period from 1/6/2020 to 6/2/23 and then I was appointed as the new treasurer on 6/2/23. 4 I.T.A. No.145 & 146/Mum/2025 AY:2018-19 & 2020-21 Silver Cascade Co-operative Hsg. Soc. Ltd n. The society had made appeal for Condonation of Delay on the above facts and circumstances in Form 35 before the CIT (A). o. The Form 35 for AY 2020-21 was filed wherein the contact details mentioned are Email: [e-mail] and Telephone No. 9820934775 and landline No. 022- 2411454. p. I do hereby state and confirm in my capacity as a Treasurer of the society that the society has not received any communication or Notice or Letter from the CIT (A) regarding any hearing fixed for AY 2020-21. I, solemnly state that the contents of this Affidavit are true to the best of my knowledge and belief and that it conceals nothing and that no part of it is false.” 2.4. The Ld. AR thus, prayed for the delay to be condoned in the interest of justice as the issue deserves to be considered on merits. He submitted that assessee made out a reasonable cause for the delay and no malafide intention could be attributed to the assessee in filing the appeal belatedly before the Ld.CIT(A). 2.5. On the contrary, the Ld.DR though, did not agree with the arguments of the Ld.AR, however, could not controvert the submissions of the assessee in the affidavit. We have perused the submission advance by both sides in the light of record placed before us. 3. Nothing has been brought of record by the revenue in order to establish that assessee had not filed the original appeal within the period of limitation. The assessee has placed on record the acknowledgment number of appeal that was filed which has also not been provided to be falls. We therefore, do not find any malafide intention of behalf of the assessee in filing the appeal before the Ld.CIT(A) belatedly. 4. For assessment year 2020-21, the Ld.AR submitted that, assessee never received any notice of hearing thus through the e- 5 I.T.A. No.145 & 146/Mum/2025 AY:2018-19 & 2020-21 Silver Cascade Co-operative Hsg. Soc. Ltd mail id or even as on the mobile number registered on the Income Tax Portal of the assessee which is also reflect in Form 35 filed for. The assessee categorically submitted that, the notices said to have been issued in the order passed by the Ld.CIT(A) never reached the assessee and therefore, assessee absolutely was unaware of the hearing dates. The Ld.AR thus, prayed that the assessee may be granted an opportunity of being heard in the interest of justice. 4.1. On the contrary the Ld.DR though, did not agree with the arguments of the Ld.AR, could not controvert the submission of the assessee that has been reproduce in the affidavit. 4.2.We have perused the submission advance by both sides in the light of record placed before us. 5. “The reason assigned by the assessee inability to present the appeal within time before Ld.CIT(A) deserves consideration based on the principles laid down by Hon'ble Supreme Court in case of Collector Land Acquisition Vs. Mst. Katiji & Ors., reported in (1987) 167 ITR 471. Reliance is placed on following observations by Hon’ble Supreme Court in case of Collector Land Acquisition Vs. Mst. Katiji & Ors., reported in (supra): “The Legislature has conferred the power to condone delay by enacting section 51 of the Limitation Act of 1963 in order to enable the courts to do substantial justice to parties by disposing of matters on de merits\". The expression “sufficient cause” employed by the Legislature is adequately elastic to enable the courts to apply the law in a meaningful manner which subserves the ends of justice that being the life-purpose of the existence of the institution of courts. It is common knowledge that this court has been making a justifiably liberal approach in matters instituted in this court. But the message does not appear to have percolated down to all the other courts in the hierarchy. And such a liberal approach is adopted on principle as it is realized that: 1.Ordinarily, a litigant does not stand to benefit by lodging an appeal late. 6 I.T.A. No.145 & 146/Mum/2025 AY:2018-19 & 2020-21 Silver Cascade Co-operative Hsg. Soc. Ltd 2. 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. ...................................................... 1.Any appeal or any application, other than an application under any of the provisions of Order XXI of the Code of Civil Procedure, 1908, may be admitted after the prescribed period if the appellant or the applicant satisfies the court that he had sufficient cause for not preferring the appeal or making the application within such period.” 5.1. Respectfully, following the above ratio we condone the delay in filing the appeal for assessment year 2018-19 & 2020-21 before the Ld.CIT(A). 6. The Ld.AR on merit submitted that, the assessee has not been able to furnish any details in support of its claims before the authorities below. In the interest of justice, Ld. AR prayed for an opportunity to be granted to present its case before the Ld.CIT(A). 6.1. On the contrary, the Ld.DR submitted that, as the claim raised by the assessee in respect of 80P need to be considered by verifying various documents. We have perused the submissions advanced by both the sides in light of record, placed before us. 7. In the interest of justice considering the submissions by both sides, we remit this issue to the Ld. AO for both the appals for assessment years under consideration. The Ld. AO is directed to pass detailed order on merits after considering submissions filed by the assessee in accordance with law. Needless to say that proper opportunity of being heard must be granted to assessee. 8.Accordingly, grounds raised by the assessee for assessment years 2018-19 and 2020-21 stands partly allowed for statistical purposes. 7 I.T.A. No.145 & 146/Mum/2025 AY:2018-19 & 2020-21 Silver Cascade Co-operative Hsg. Soc. Ltd In the result appeal filed for assessment years 2018-19 and 2020-21 stands partly allowed for statistical purposes. Order pronounced in the open court on 04/04/2025 Sd/- Sd/- (OMKARESHWAR CHIDARA) (BEENA PILLAI) Accountant Member Judicial Member Mumbai: Dated: 04/04/2025 Divya R. Nandgaonkar, Stenographer Copy of the order forwarded to: (1) The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T. True Copy By order (Asstt. Registrar) ITAT, Mumbai "