Shree Sejal Tower Co-operative Housing Society Limited Vs CPC (ITAT Mumbai)
In the case of Shree Sejal Tower Co-operative Housing Society Limited vs. CPC (ITAT Mumbai), the assessee appealed against the order dated February 9, 2024, from the National Faceless Appeal Centre (NFAC), which dismissed the appeal due to a delay in filing. The society had submitted its return for Assessment Year (AY) 2015-16, reporting a total income of ₹0 after claiming a deduction under Section 80P(2)(d) amounting to ₹9,40,943. The return was processed, resulting in a tax assessment of ₹9,40,490. Following the rejection of its application for condonation of delay in filing the appeal, the society approached the tribunal. The appeal was filed approximately 2,330 days late, but the Supreme Court’s order dated January 1, 2022, excluded the limitation period from March 15, 2020, to February 28, 2022, due to the Covid-19 pandemic. After adjusting for this period, the remaining delay was 1,625 days. Despite the CIT(A)’s rejection of the delay based on insufficient cause, the tribunal found merit in the society’s arguments, including the death of its chartered accountant in 2017 and ongoing rectification efforts based on a bona fide belief that the issue would be resolved. Ultimately, ITAT Mumbai allowed the appeal, set aside the CIT(A)’s order, and directed the CIT(A) to hear the case on its merits, ensuring adherence to principles of natural justice. The order was pronounced on October 15, 2024.
