ITAT allows delay condonation petition filed by IOB Employees Co-operative Society

ITAT allows delay condonation petition filed by IOB Employees Co-operative Society

The bench ruled the assessee filed the appeal manually in time and there was no negligence on its part

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the delay condonation petition filed by the Indian Overseas Bank Employees Co-operative Society. This was regarding 163 days delay due to late receipt of intimation via email under Section 143(1) of the Income Tax Act.

The assessee is a cooperative credit society registered under the Maharashtra Co-operative Societies Act, 1960, and formed for the welfare of the employees of Indian Overseas Bank.

The assessee filed its Income Tax Return (ITR) at 'Nil' after claiming a deduction of Rs.40,30,464. This was denied on the ground that the return was filed belatedly. Aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) manually and electronically on 9 December 2019 after a delay of 163 days.

This was not accepted by CIT(A) as no reason was adduced in Form 35. The CIT(A) dismissed the appeal on the ground that the assessee failed to explain the delay in filing the appeal and that there was no sufficient cause for the delay. The assessee then approached ITAT.

The assessee submitted before the tribunal that there was no delay in filing the appeal as the 29 June 2019 intimation was served to it on 26 November 2019. It filed the appeal in manual form in time on 9 December 2019 (within 30 days).

The assessee stated it was not aware of the intimation passed under Section 143(1) by the CPC and the communication was received by the assessee only on 26 November 2019 at 6.34 am via email. The copies were also furnished.

It argued that it was a non-profit motive co-operative credit society, which provided honorary services. There was no wilful delay or gross negligence on its part in filing the appeal.

The bench comprising Kavitha Rajagopal (judicial member) and Prashant Maharshi (accountant member) observed, "We are of the view that the assessee did not wilfully delay the filing of the appeal. There is no negligence on the part of the assessee, as it filed the appeal manually in time."

The bench further stated, "We find that the reasons mentioned are bonafide and it amounts to sufficient cause for the delay in filing appeal electronically before the CIT(A). Therefore, in the interest of natural justice, we condone the delay and restore the appeal to the file of the CIT(A)."