SINDHDURG DISTRICT EX-SERVICEMEN ASSOCIATION,SAWANTWADI V. INCOME TAX OFFICER, KOLHAPUR

ITA 545/PUN/2025

AI Insights

The case involves the Sindhudurg District Ex-servicemen Association, which appealed against the orders of the National Faceless Appeal Centre (NFAC) for the assessment years 2016-17 to 2020-21. The appeals were initially dismissed by the CIT(A) due to delay in filing, which the Tribunal found to be affected by the COVID-19 pandemic and the assessee's unfamiliarity with the online processing of tax returns. The Association, engaged in charitable activities including running a sainik school, faced additions to their income due to non-filing of Form 10B, which they later submitted but were not considered by the CIT(A). The Tribunal emphasized the need for a justice-oriented approach over a technical one and decided to set aside the CIT(A)'s orders, remitting the matter for fresh consideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708898 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Other Referred Cases: Raheem Shah & ANR Vs Govind Singh & Ors, Collector, Land Acquisition, Anantnag & Anr. Vs. Mst. Katiji & Ors., Inder Singh Vs. State of Madhya Pradesh
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AKHILESH SRIVASTAVA
• Assessee Lawyers: PRAMOD S. SHINGTE
• Keywords: Set aside; Reasonable cause
• Section: 10B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.544 to 548/PUN/2025 Assessment Years : 2016-17 to 2020-21 Sindhudurg District Ex-servicemen Association, 3, Moti Tower, Salaiwada, Sawantwadi - 416510 Maharashtra PAN : AADTS7632K Vs. Income Tax Officer, Exemption Ward, Kolhapur Appellant Respondent आदेश / ORDER PER BENCH : The captioned five appeals at the instance of assessee pertaining to A.Yrs. 2016-17 to 2020-21 are directed against the separate orders dated 13.02.2023 and 14.02.2023 of National Faceless Appeal Centre(NFAC), Delhi passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of respective Intimation Orders dated passed u/s.143(1) of the Act. 2. At the outset, Ld. Counsel for the assessee submitted that the assessee trust is formed by the Ex-servicemen of Indian Army with a noble cause of providing quality education and runs Sainik school in rural area at village Amboli, Sindhudurg District since last many years. Return of income for the impugned assessment years were filed and processed u/s.143(1)(a) of the Act. However, Appellant by : Shri Pramod S. Shingte Respondent by : Shri Akhilesh Srivastava Date of hearing : 14.07.2025 Date of pronouncement : 16.07.2025 ITA Nos.544 to 548/PUN/2025 Sindhudurg District Ex-Servicemen Association 2 for non filing of Form 10B, gross receipts were added in the hands of assessee from year after year but due to online processing assessee was not aware about the huge additions and demands created for the impugned assessment years in the returns processed u/s.143(1)(a) of the Act, Lateron, when the assessee came to know about the alleged additions for the impugned assessment years, it filed the appeals for all the impugned assessment years before ld.CIT(A) and there was considerably delay. He also submitted that major delay for few years is purely on account of covid-19 pandemic outbreak prevailed across the country and it was not intentional. Therefore, he submitted that due to ‘reasonable cause’ the appeals could not be filed within the time limit but still ld.CIT(A) did not condone the delay and dismissed the appeals in limine. He thus prayed that the delay in filing of the appeals before ld.CIT(A) be condoned and the issues may be restored to the file of ld.CIT(A) for necessary adjudication. He also submitted that Form 10B was not filed on the due date but lateron they have been procured and were even submitted before ld.CIT(A) but the same have not been considered. 3. On the other hand, ld. Departmental Representative supported the orders of ld.CIT(A) but did not oppose the request of ld. Counsel for the assessee of condoning the delay in filing of appeals before ld.CIT(A) and restoring the issue in all these appeals to the file of ld.CIT(A) for necessary adjudication. 4. We have heard the rival submissions and perused the record placed before us. Admittedly, the appeals before ld.CIT(A) for the impugned assessment years have been filed belatedly. We also observe that the assessee is engaged in charitable activity of imparting education to students of Ex-servicemen in a sainik school located in rural area. For past few years, filing of returns ITA Nos.544 to 548/PUN/2025 Sindhudurg District Ex-Servicemen Association 3 and processing of returns has gone online but still there are many assessee(s) who are not well versed with this technical advancement and also not so techno-friendly of checking e-mails sent through ITBA portal from time to time. Slowly and gradually, the assessees are getting educated and are also getting used to this new system but still exceptions cannot be ignored. In the given case also, assessee was not aware about the processing of returns and the additions made for various assessment years under appeal. 5. The appellate remedy or forum is created by the statute is to rest the dispute and not to accelerate for higher forum perfunctorily. We would like to quote the judgment of Hon’ble Supreme Court in the case of Raheem Shah & ANR Vs Govind Singh & Ors [CIVIL APPEAL No.4628 OF 2023, dated 24.07.2023], wherein the Hon’ble Apex Court while dealing with tax litigation, held that the Ld.CIT(A)/NFAC being a quasi-judicial authority was expected to adopt justice oriented approach rather resorting to iron-cast technical one however the Ld.CIT(A)/NFAC came to dismiss the appeals of the assessee in limine on the ground of delay without even according a fair opportunity of hearing. Having regard to the facts of the instant case, ld.CIT(A) ought to have condoned the delay by virtue of judgments of Hon’ble Supreme Court in the case of Collector, Land Acquisition, Anantnag & Anr. Vs. Mst. Katiji & Ors. reported in (1987) 2 SCC 107 and in the case of Inder Singh Vs. State of Madhya Pradesh judgment dated 21.03.2025 (2025 INSC 382). We therefore condone the delay occurred before ld.CIT(A) in filing of appeals by the assessee for the impugned assessment years. 6. Considering the totality of facts and in all fairness the assessee is entitled to a fair opportunity. In view of this, without ITA Nos.544 to 548/PUN/2025 Sindhudurg District Ex-Servicemen Association 4 offering any comments on merits of the case, we deem it fit to set- aside the impugned orders and remit all the issues to the file of Ld.CIT(A)/NFAC for de-novo adjudication and pass a speaking order in terms of provisions of section 250(6) of the Act. Assessee is directed to update email id and contact detail on ITBA portal. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Impugned orders are set aside and the effective grounds of appeal raised by the assessee in all these appeals are allowed for statistical purposes. 7. In the result, all the appeals of the assessee are allowed for statistical purposes. Order pronounced on this 16th day of July, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 16th July, 2025. Satish 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, “B” ब\u0014च, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "