Case Law Details
Ryatara Seva Sahakari Sangha Niyamita Vs ITO (ITAT Bangalore)
The assessee did not file an appeal before the first appellate authority within the time limit prescribed, on the bonafide belief that the demand that has arisen on account of disallowance of claim u/s 80P of the I.T.Act would not be enforced and shall be kept in abeyance until the assessment order was rectified by fixing the final liability based on the Hon’ble Supreme Court judgment. However, when recovery proceedings were initially initiated on 01.02.2017, the assessee approached the Assessing Officer and orally it was informed to the assessee that the demand would not be enforced and the notice was issued in usual course along with other cases. It is submitted by the assessee, later in December 2018, when there was threat of attachment of bank accounts and direction to pay atleast 20% of the total demand, the assessee was forced to file appeal before the CIT(A) on 30.01.2019. I am of the view that there was bonafide reasons on the part of the assessee for not filing the appeal within the prescribed time limit before the CIT(A). The delay in filing the appeal before the CIT(A) was solely on account of the clear statement by the Assessing Officer that the demand raised in the assessment order would be kept in abeyance till the final decision is taken by the Hon’ble Apex Court. The assessee was under bonafide belief that the A.O. would pass an order u/s 154 of the I.T.Act confirming the demand citing the Hon’ble Apex Court judgment before starting recovery action. Therefore, I am of the view that there is `sufficient cause’ for filing appeal belatedly before the CIT(A) and the delay cannot be attributed to any latches on the part of the assessee.
The application for condonation of delay in filing the appeals are hereby allowed.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This appeal at the instance of the assessee is directed against CIT(A)’s order dated 05.12.2019. The relevant assessment year is 2014-2015.
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