Sirwar Pattina Sahakara Sangha Niyamita Vs ITO (ITAT Bangalore)
Rules of procedure are handmaid of justice.-537-Day Delay Condoned & ₹29.08 Lakh Section 80P Addition Deleted
Procedure Is the Handmaid, Not the Mistress, of Justice: 537-Day Delay Condoned & ₹29.08 Lakh Section 80P Addition Deleted
The Bangalore Bench of the ITAT has condoned an extraordinary delay of 537 days in filing an appeal by a co-operative credit society after finding that the delay arose from misappropriation allegations against its former CEO, successive management changes, death of the officer entrusted with compliance and notices being sent only to an email account controlled by the former tax consultant.
After admitting the appeal, the Tribunal decided the controversy on merits and deleted an addition of ₹29,08,301, holding that interest earned from deposits with co-operative banks & scheduled banks out of funds temporarily surplus in the credit business was eligible for deduction u/s 80P(2)(a)(i).
Misappropriation, Death & Management Changes Delayed Appeal
Sirwar Pattina Sahakara Sangha Niyamita was a co-operative credit society engaged in providing credit facilities to its members. Its appeal before the ITAT was delayed by 537 days.
The society explained through an affidavit of its Chief Executive Officer that the earlier CEO had absconded from 25-07-2020 amid allegations of misappropriation of approximately ₹30.60 lakh. Complaints and an FIR were lodged regarding the alleged irregularities.
