Enayetpur S K U S Ltd Vs ACIT (ITAT Kolkata)
Enayetpur S K U S Ltd appealed against the decision of ld. CIT(A), NFAC, regarding AY 2015-16, seeking condonation of a 105-day delay. The case revolves around denial of deduction under Section 80P(2)(i) for claimed credit facilities.
The appellant cited oversight due to irregular mail checks, discovering the appellate order online, and subsequently filing the appeal with a delay. The ld. Counsel argued for condonation based on bona fide reasons, while the ld. D/R contested, citing awareness of the faceless system.
The ITAT considered the Supreme Court’s stance on condonation of delay, emphasizing acceptability of explanation over delay length. Noting the appellant’s genuine circumstances, the ITAT condoned the delay, admitting the appeal for merit consideration.
The grounds of appeal contested the denial of deduction under Section 80P, emphasizing the primary agricultural credit society’s nature and its credit facilities to members. The appellant’s counsel highlighted relevant clauses and argued for deduction reinstatement.
In response, the Ld. Departmental Representative supported lower authorities’ decisions, disputing the appellant’s eligibility.
The ITAT, after reviewing provisions of Section 80P and relevant judicial precedents, concluded in favor of the appellant. Upholding entitlement under Section 80P(2)(i), the ITAT directed verification of credit facilities to members for deduction allowance. The appeal was allowed for statistical purposes.
