VADODARA URBAN DEVELOPMENT AUTHORITY,VADODARA V. THE DY.CIT (EXEMPTION), CIRCLE-2, AHMEDABAD

ITA 1252/AHD/2025

AI Insights

The case involves the Vadodara Urban Development Authority, a government organization, appealing against the order of the CIT(A) which dismissed their appeal as barred by limitation without considering the merits. The delay in filing the appeal was attributed to the transfer and vacancy of the Chief Accounts Officer, the competent authority to sign and file the appeal. The Tribunal recognized the procedural constraints faced by government organizations and decided to set aside the CIT(A)'s order, allowing the appeal to be heard on merits, subject to the payment of costs.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717110 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 30-05-2025
• Other Referred Cases: ACIT (Exemptions) Vs. Ahmedabad Urban Development Authority and Ors. reported in 449 ITR 1 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B.P. RASTOGI; CIR
• Assessee Lawyers: HARDIK VORA
• Keywords: Condonation of delay; Set aside

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0011ायपीठ “बी“,अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD \u0015ी संजय गग\u001a, \u0011ाियक सद\u001b एवं \u0015ी मकरंद वसंत महादेवकर, लेखा सद\u001b क े सम!। ] ] Before Shri Sanjay Garg, Judicial Member And Shri Makarand V. Mahadeokar, Accountant Member आयकर अपील सं /ITA No.1252/Ahd/2025 िनधा \u000fरण वष\u000f /Assessment Year : 2014-15 Vadodara Urban Development Authority VUDA Bhavan, L&T Circle, Karelibaugh S.O., Vadodara – 390 015 (Gujarat) बनाम/ v/s. The Dy.CIT (Exemption) Circle-2 Ahmedabad – 380 015 \u0013थायी लेखा सं./PAN: AAABV 0141 M (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee by : Shri Hardik Vora, Advocate Revenue by : Shri B.P. Rastogi, CIR-DR सुनवाई की तारीख/Date of Hearing : 19/082025 घोषणा की तारीख /Date of Pronouncement: 22/08/2025 आदेश/O R D E R Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 27/03/2025 passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2014-2015. 2. At the outset, the Ld.Counsel for the assessee submitted that the assessee is a Government Organization. That there was a delay of 109 days in filing the appeal before the Ld.CIT(A). The Ld.Counsel further invited our Printed from counselvise.com ITA No.1252/Ahd/2025 Vadodara Urban Development Authority vs. The Dy.CIT (Exemption), Circle-2 Asstt.Year 2014-15 2 attention to the impugned order of the Ld.CIT(A) has submitted that the Ld.CIT(A) has not condoned the delay in filing the appeal and has dismissed the appeal of the assessee being barred by limitation. That no findings on merits have been given by the Ld.CIT(A). The Ld.Counsel has further submitted that the delay in filing the appeal before the Ld.CIT(A) was not intentional, in fact, the assessee being a Government Organization has to follow government rules and regulations. Only a person competent to sign the appeal form could have filed the appeal. That the concerned competent officer, i.e. Chief Accounts Officer of the assessee-organization had been transferred and his office was vacant for the period from 31/05/2024 to 15/06/2024. When the new Chief Accounts Officer joined and the matter was put up before him and he, after reviewing an understanding the entire facts of the case, decided to file the appeal and that in the process, the aforesaid delay of 109 days had occurred in filing the appeal before the Ld.CIT(A). That a separate application for condonation of delay was filed before the Ld.CIT(A). However, the Ld.CIT(A) for the reasons mentioned in the impugned order has rejected the application of condonation of delay and thereby dismissed the appeal of the assessee. The Ld.Counsel has submitted that the assessee has a fair case on merits and that, in fact, the case of the assessee is duly covered by the decision of the Hon’ble Supreme Court in the case of ACIT (Exemptions) Vs. Ahmedabad Urban Development Authority and Ors. reported in 449 ITR 1 (SC). The Ld.Counsel has further submitted that there are certain limitations for the Government Organisations and its Officers, due to which certain Departmental procedure and formalities have to be adopted, resulting into the aforesaid delay of 109 days in filing the appeal before the Ld.CIT(A). The Ld.Counsel has submitted that, for the sake of interests of justice, the delay in filing the appeal before the Ld.CIT(A) Printed from counselvise.com ITA No.1252/Ahd/2025 Vadodara Urban Development Authority vs. The Dy.CIT (Exemption), Circle-2 Asstt.Year 2014-15 3 be condoned and the matter may be restored to the file of ld.CIT(A) for decision on the assessee’s appeal on merits. 3. The Ld.Departmental Representative (DR), on the other hand, has relied upon the findings of the Ld.CIT(A). 4. We have considered the rival submissions and gone through the record. It is to be noticed that the assessee-organisation is a Government Organisation. It is also commonly known that a Government Organisation and its officials have to work as per the prescribed rules and procedure. The competent Officer to decide as to whether the appeal has to be filed against the assessment order and further also signing authority was the Chief Accounts Officer. It is also a fact on the file that the office of the Chief Accounts Officer of the assessee-organisation remained vacant for the period from 31/05/2024 to 15/06/2024. Even after the new incumbent joined, there were certain departmental procedure and formalities and the concerned officer had to go through the various pending matters including the matter relating to filing the present appeal. After application of mind, the said Officer has preferred the appeal and, in this process, a short delay of 109 days has occurred. Considering the overall facts and circumstances of the case, in our view, the interests of justice will be well-served, if the assessee is given an opportunity to present its case on merits before the CIT(A). For the delay occurred in filing the appeal, the assessee is burdened with a costs of Rs.5,000/- to be deposited in the Prime Minister’s National Relief Fund. The impugned order of the Ld.CIT(A) is set aside and the matter is restored to the file of ld.CIT(A) for decision afresh on merits irrespective of the aforesaid delay occurred in filing the appeal before him, however, subject to furnishing Printed from counselvise.com ITA No.1252/Ahd/2025 Vadodara Urban Development Authority vs. The Dy.CIT (Exemption), Circle-2 Asstt.Year 2014-15 4 of evidence of deposit of Rs.5,000/- in the Prime Minister’s National Relief Fund. 5. In the result, appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the Open Court on 22/08/2025. Sd/- Sd/- (Makarand V. Mahadeokar) Accountant Member ( Sanjay Garg ) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 22/08/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : 1. अपीलाथ% / The Appellant 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT 4. आयकर आयु' ) अपील ( / The CIT(A)- (NFAC), Delhi 5. िवभागीय #ितिनिध , अिधकरण अपीलीय आयकर , अहमदाबाद /DR,ITAT, Ahmedabad. 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ BY ORDER, स&ािपत #ित //True Ce Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation (dictation pad is attached with the file)) : 19.8.2025 2. Date on which the typed draft is placed before the Dictating Member. : 21.8.2025 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 22.8.2025 7. Date on which the file goes to the Bench Clerk. : 22.08.2025 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : Printed from counselvise.com "