Back
2025 Supreme(Online)(ITAT) 3612
INCOME TAX APPELLATE TRIBUNAL (PUNE BENCH)
Shri Manish Borad, ACJ, Shri Vinay Bhamore, J
Shree Narsinha Nagari Sahakari Patsanstha – Appellant
Versus
ITO, Ward- 10(1), Pune – Respondent
ITA Nos.177/PUN/2025 | ITA Nos.178/PUN/2025 | ITA Nos.386/PUN/2025 | ITA Nos.387/PUN/2025 | ITA Nos.388/PUN/2025
For the Appellants/Petitioners: Shri Abhay Avchat
For the Respondents: Shri Amol Khairnar, Shri Ramnath P. Murkunde
The court established that delays in filing appeals should be condoned when merits require examination, prioritizing substantial justice over technical limitations.
Headnote:(A) Income Tax Act - Sections 5, 80P, 270A, and 271AAC(1) - Appeals against orders of Ld. CIT(A)/NFAC - Delay in filing appeals - The court emphasized that a liberal approach should be taken in condoning delays when merits need examination, citing that refusal can lead to injustice. (Paras 17, 20, 22, 24)
(B) Condonation of Delay - The court ruled that the expression 'sufficient cause' should receive a liberal construction to advance substantial justice, particularly when no negligence is attributable to the appellant. (Paras 20, 21, 24)
Facts of the case:
The appellant, a cooperative credit society, faced scrutiny for AYs 2018-19 and 2020-21, with appeals filed against penalty and quantum assessments. The CIT(A) dismissed appeals due to delay without considering merits.
Findings of Court:
Delay in filing appeals was condoned, and appeals were restored to Ld. CIT(A) for adjudication on merits.
Issues: The primary issues were whether the delay in filing appeals could be condoned and if the merits of the case were adequately considered by the CIT(A).
Ratio Decidendi: The court stated that substantial justice must be prioritized over technicalities, and the merits of cases should not be dismissed solely on limitation grounds.
Result: All appeals allowed for statistical purposes.
| Table of Content |
|---|
| 1. factual background of the case (Para 2 , 3 , 4 , 5) |
| 2. court's decision to restore appeals (Para 6 , 7) |
आदेश / ORDER
PER BENCH :
By way of above captioned appeals, the assessee’s appeal in ITA Nos.177 – 178/PUN/2025 for A.Ys. 2018-19 and 2020-21 are directed against the order of Ld. CIT(A)/NFAC dated 30.07.2024 and for remaining assessee’s appeals relating to penalty levied u/s 270A for A.Ys. 2018-19 and 2020-21 and u/s 271AAC(1) for A.Y. 2020-21 are directed against the order of Ld. CIT(A)/NFAC dated 13.01.2025 and 07.01.2025 respectively.
2. Since all the above captioned appeals relates to the same assessee of which ITA Nos.177 – 178/PUN/2025 are the quantum appeals and remaining three are penalty appeals, all the appeals were heard together and are being disposed of by this consolidated order for the sake of convenience and brevity.
3. At the outset, Ld. Counsel for the assessee referring to the following written submissions has mainly contended that Ld. CIT(A)/NFAC has either not condoned the delay or has not passed the orders on merits of the case and, therefore, prayer is made for restoring the issues raised in all the instant appeals relating to the quantum/penalty to the file of Ld. CIT(A)/NFAC for necessary adjudication :-
“SHREE NARSINHA NAGARI SAHAKARI PATSANSTHA
NARSINH BUILDING, A/P RANJANI, TAL.
AMBEGAON, AMBEGAON, DIST. PUNE - 410504, Maharashtra
June 25, 2025
The Assistant Registrar,
The Income Tax Appellate Tribunal,
Pune ‘A’ Bench, Pune
Dear Sir,
| ITA No.s | Assessment Year |
| 177/PUN/2025 – quantum appeal | 2018-19 |
| 178/PUN/2025– quantum appeal | 2020-21 |
| 386/PUN-2025 – penalty appeal section 270A | 2018-19 |
| 387/PUN-2025 – penalty appeal section 270A | 2020-21 |
| 388/PUN-2025 – penalty appeal section 271AAC(1) | 2020-21 |
Re : Shree Narsinha Nagari Sahakari Patsanstha
PAN : AAAAN4056G
A.Y. : 2018-19 and 2020-21
Subject : Filing of affidavit requesting to condone delay in filing of CIT appeal and furnishing of explanation with respect to delay condonation
Date of hearing –June 26, 2025
1. In the captioned matter, this refers to the hearing of appeal before your honour scheduled on June 26, 2025.This is assessee’s appeal against appeal dismissed by the NFAC, Delhi. There are total 5 appeals filed by assessee before your honour.
Background and facts
2. The Appellant assessee is a cooperative credit society registered in Taluka Ambegaon Pune. It is engaged in providing loans and advances to members, accepting deposits from members and rendering ancillary services.
3. Its case was selected for scrutiny for both the years AY 2018-19 and AY 2020-21. Assessment order was passed by the FAO u/s 144 in both the years.
4. The subject matter of addition / issues in both the appeal are - disallowance of entire deduction claimed u/s 80P, addition of members’ deposits as unexplained cash credit, disallowance of provision of expenses on adhoc basis, etc.
5. The aggregate demand due to assessment and penalty order has mounted to around Rs. 30 crores.
Affidavit for delay condonation - year wise
6. The assessee society is filing two separate affidavits signed by its chairman explaining reasons of delay and requesting to condone delay in filing of appeal before the CIT A. It has already furnished copy of affidavit explaining delay in filing of ITAT appeal along- with Form 36.
7. There are total five appeals filed before your honour. In 4 appeals, the CIT A has not condoned delay and dismissed assessee’s appeal as not admissible / not maintainable. The CIT A has condoned delay in respect of penalty appeal of AY 2020-21 u/s 271AAC(1), having ITA No. 388/PUN-2025.
8. In case of AY 2018-19, there was delay of 20 months in filing of appeal in Form 35 before the CIT A in respect of both the appeals after considering credit of relaxation period of Covid pandemic as per the hon. SC’s guidelines. In order to explain reasons of delay, we are enclosing copy of affidavit duly signed by director of the assessee. (quantum appeal having ITA No. 177/PUN/2025 and penalty appeal having
