Sonepat Central Co-operative Bank Ltd. Vs ACIT (ITAT Delhi)
Negligence of Officials Should Not Defeat Justice- Change of Management Justifies Delay – Substantial Delay of 563 Days Condoned
Assessee, a co-operative society engaged in banking activities, filed appeal against the order of CIT(A), NFAC, Delhi dated 28.07.2023, which had upheld the assessment framed u/s 143(3) for AY 2016-17. The appeal before the Tribunal was delayed by 563 days. Along with the appeal, Assessee filed an application for condonation of delay supported by affidavit of Shri Jai Prakash Soni, General Manager, explaining that due to repeated changes in the position of General Manager (five changes between June 2023 & July 2025) & lack of proper communication, the society was unaware of the pending proceedings & demand notice.
Tribunal noted that though there was apparent negligence on part of the management, such lapse should not defeat substantive justice since the co-operative bank represents interests of numerous agriculturist members. Considering the peculiar facts & in the interest of justice, delay in filing appeal was condoned.
On merits, since the CIT(A) had passed an ex parte order without considering any submission or material from the Assessee, the Tribunal held that the Assessee deserved one more opportunity. Therefore, the matter was restored to the file of CIT(A)/NFAC for fresh adjudication after affording adequate opportunity of hearing to the Assessee.
