Elegant Embassy III Apartment Owners Association Vs ITO (ITAT Bangalore)
Income Tax Appellate Tribunal (ITAT) Bangalore ruled in favor of the Elegant Embassy III Apartment Owners Association, setting aside an order by the Commissioner of Income Tax (Appeals) [CIT(A)] due to a procedural issue. The association had filed an appeal against an order from the National Faceless Assessment Centre (NFAC), but there was a 367-day delay in submission. The CIT(A) dismissed the appeal without condoning the delay. The association argued that the delay was due to a technical issue—its registered email ID was linked to the previous president, who was unavailable to provide the One-Time Password (OTP) needed for updates. The newly elected committee faced difficulties updating the email ID, leading to an unintended delay. The association, a non-profit entity managed by volunteers, claimed that rejecting the appeal on technical grounds would cause undue hardship.
After reviewing the case, ITAT acknowledged the genuine reasons for the delay and the assurance from the association’s representative regarding compliance. Since the Departmental Representative did not strongly oppose reconsideration, ITAT ruled in favor of remitting the case back to CIT(A) for fresh adjudication. The Tribunal directed CIT(A) to condone the delay and review the appeal on its merits, ensuring due process. Additionally, ITAT instructed the association to comply with all requirements and avoid unnecessary adjournments. As a result, the appeal was partially allowed for statistical purposes, granting the association another opportunity to present its case.
