Palmera Co Op Housing Society Limited Vs ITO (ITAT Mumbai)
Income Tax Appellate Tribunal (ITAT), Mumbai, condoned a 2202-day delay in filing an appeal by Palmera Co-operative Housing Society Limited for the assessment year 2014-15. The delay arose due to the society’s bona fide belief that the rectification application under Section 154 of the Income Tax Act would address the issue of disallowed deductions under Section 80P(2)(d). The rectification was denied, leading to an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)], who dismissed it due to the prolonged delay. The ITAT considered similar decisions in the society’s own cases for earlier assessment years and the Vishva Villa Co-op Housing Society case, concluding that the belief constituted a reasonable cause. On merits, the ITAT ruled that disallowance under Section 143(1)(a) could not be made without a proper hearing, especially for claims before AY 2021-22, as per amended provisions of the Finance Act, 2021. Respectfully following earlier Tribunal orders, the ITAT directed the Assessing Officer to delete the disallowance under Section 80P(2)(d), thereby allowing the society’s appeal.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
Present appeal filed by the assessee arises out of order dated 10.09.2024 passed by the NFAC, Delhi for A.Y. 2014-15 on following grounds of appeal:
“1. On the facts and the circumstances of the case and in law, the learned the CIT (A) erred in not condoning delay in filing of an appeal.
2 On the facts and the circumstances of the case and in law, the learned CIT (A) erred in not admitting the appeal on account of delay in filing of an appeal.
3 The learned CIT(A) erred in not deciding the appeal on merits. The learned CIT(A) ought to have passed the order on merit and not deciding in limine.
4 The learned CIT(A) erred in not allowing deduction u/s.80P(2)(d) of Rs.7,26,628.
5 The appellant craves leave to add, amend, modify, substitute and I or cancel any of the ground of the appeal.”
Brief facts of the case are as under:
