VNIT KARMACHARI SAHAKARI PAT SANSTHA,NAGPUR V. ITO WARD 1(5), NAGPUR

ITA 162/NAG/2024

AI Insights

The case involves VNIT Karmachari Sahakari Pat Sanstha, a cooperative society engaged in providing credit facilities, which appealed against the disallowance of a deduction claimed under section 80P of the Income Tax Act. The initial disallowance was made by the Assessing Officer in Bengaluru, and the CIT(A) upheld this decision, dismissing the appeal due to delay without condoning it. The Tribunal found that the CIT(A) had not adjudicated the appeal on merits as required and directed a re-examination of the case, allowing the appeal and emphasizing the need to prioritize substantial justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471269 (ITAT-NAGPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Other Referred Cases: Collector, Land Acquisition vs. MST Katiji [1987] 167 ITR 471 (SC)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHAY Y. MARATHE
• Assessee Lawyers: ABHAY AGRAWAL; NOT
• Keywords: Condonation of delay

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR “SMC” BENCH : NAGPUR BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER ITA.No.162/NAG./2024 [E-APPEAL] Assessment Year 2020-2021 VNIT Karmachari Sahakari Pat Sanstha, VNIT Campus, Bajaj Nagar, NAGPUR – 440 010 PAN AACAV1878L Maharashtra. vs. The Income Tax Officer, Ward-1(5), BSNL RTTC Bldg. NAGPUR. Maharashtra. (Appellant) (Respondent) For Assessee : Shri Abhay Agrawal, Advocate For Revenue : Shri Abhay Y. Marathe, Sr. DR Date of Hearing : 27.01.2025 Date of Pronouncement : 28.01.2025 ORDER PER V. DURGA RAO, J.M. : This appeal has been filed by the assessee against the order dated 25.01.2024, of the learned Addl./JCIT(A)-1, Jaipur, relating to assessment year 2020-2021. 2. Facts of the case, in brief, are that the assessee is a cooperative society registered under the law in the State of Maharashtra and engaged in providing credit facilities to it’s members. The assessee-society has filed it’s return of income on 09.01.2021 declaring income at Rs.NIL by claiming deduction 2 ITA.No.162/NAG./2024 u/sec.80P of the Act at Rs.17,17,680/-. The Assessing Officer/CPC, Bengaluru, vide order dated 23.12.2021 passed u/sec.143(1) of the Act disallowed the deduction of Rs.17,17,680/- claimed u/sec.80P of the Act. 3. Aggrieved by the order of the Assessing Officer/CPC, Bengaluru, the assessee carried the matter in appeal before the learned CIT(A) with delay. Before the learned CIT(A), the assessee submitted that the part of the delay was due to Covoid-2019 outbreak pandemic and for the balance period the assessee society offered it’s explanation. However, the learned CIT(A) was not satisfied with the explanation submitted by the assessee society and confirmed the order of the Assessing Officer in disallowing claim of deduction u/sec.80P of the Act and dismissed the appeal of the assessee by not condoning the delay. 4. Aggrieved by the order of the learned CIT(A), the assessee is in appeal before the Tribunal. 5. Learned Counsel for the Assessee, during the course of hearing, submitted that the learned CIT(A) has dismissed the appeal of the assessee society without providing adequate opportunity of hearing for explaining the delay. He submitted that the assessee 3 ITA.No.162/NAG./2024 society is ready to file an affidavit before the learned CIT(A) along with petition for condonation of delay and the learned CIT(A) be directed to condone the delay and decide the appeal on merits. He further submitted that part of delay has been occurred due to Covid-2019 outbreak pandemic and for the part delay he has sufficient cause. He submitted that the claim of sec.80P deduction is a legitimate one and the assessee society has got fair chances to succeed. He submitted that the delay in filing the appeal before the learned CIT(A) is neither willful nor wanton. He accordingly submitted that one more opportunity may please be provided to the assessee society to substantiate it’s case and prayed that the matter may be sent back to the learned CIT(A) for afresh adjudication by condoning the delay in filing the appeal before him. 6. The Learned DR on the other hand, relied on the orders of the lower authorities and strongly opposed for condonation of delay. 7. I have heard the arguments of both the sides and perused the material on record. I find that the learned CIT(A) has dismissed the appeal of assessee on the ground of delay but not decided the appeal on merits as contemplated u/sec.250(6) of the Act, according to which, the learned CIT(A) has to give reasons for decision and 4 ITA.No.162/NAG./2024 adjudication thereof. In this connection, I note that the Hon’ble Supreme Court in the case of Collector, Land Acquisition vs., MST Katiji [1987] 167 ITR 471 (SC) has 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. It has further been held that 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. In view of the above decision of Hon’ble Supreme Court in the case of Collector, Land Acquisition vs., MST Katiji (supra) and considering the submission of the assessee that assessee society would be filing condonation application along with the affidavit before the learned CIT(A), considering the totality of the facts and circumstances of the case, I deem it fit and appropriate to direct the learned CIT(A) to condone the delay in filing of the appeal before him and decide the appeal as per fact and law. I hold and direct accordingly. 8. In the result, appeal of the assessee is allowed. 5 ITA.No.162/NAG./2024 Order pronounced in the open Court on 28.01.2025. Sd/- (V. DURGA RAO) JUDICIAL MEMBER Nagpur, Dated 28th January, 2025 VBP/- Copy to 1. The appellant 2. The respondent 3. The CIT(A), Nagpur concerned 4. The CIT, Nagpur concerned 5. The D.R. ITAT, Nagpur SMC-Bench, Nagpur 6. Guard File. //By Order// True Copy Sr. Private Secretary : ITAT : Nagpur Bench NAGPUR. "