Punjab Agriculture University Vs DCIT (Exemptions) (ITAT Chandigarh)
Income Tax Appellate Tribunal (ITAT), Chandigarh Bench, in a significant ruling pronounced on December 18, 2024, has condoned substantial delays in appeals filed by the Punjab Agricultural University (PAU) and subsequently allowed its claim for income tax exemption under Section 10(23C)(iiiab) for Assessment Years 2018-19 and 2019-20. The Tribunal’s decision underscores the principle that bona fide errors by a tax counsel should not lead to the denial of legitimate benefits to the assessee, particularly when the assessee demonstrates a lack of direct involvement or technical knowledge in tax matters.
The appeals, which were filed with significant delays of 691 days for AY 2018-19 and 671 days for AY 2019-20, presented an initial hurdle for the university. The PAU attributed these delays to its reliance on its former Chartered Accountant (CA), Mr. D.P. Singh, who allegedly misled the university authorities by assuring them that the appeals had been duly filed and were pending resolution. According to the university, its accounts branch and Comptroller office lacked expertise in income tax matters and were entirely dependent on the CA.
The university only became aware of the unfiled appeals when recovery letters for pending demand were received from the Deputy Commissioner of Income Tax (Exemption), Chandigarh, in April and May 2024. Following this discovery, the university terminated the services of Mr. D.P. Singh and engaged new counsel to file the appeals. The PAU submitted an affidavit from its Comptroller, along with documentary evidence, including emails, to substantiate its claim of being misled.
