Sekhari Ganna Vikas Samiti Ltd Vs ITO (ITAT Delhi)
In the case of Sekhari Ganna Vikas Samiti Ltd vs. Income Tax Officer (ITO), the Income Tax Appellate Tribunal (ITAT) Delhi condoned a 236-day delay in filing an appeal. Sekhari Ganna Vikas Samiti, a cooperative society, had initially filed a return showing no taxable income for the assessment year 2020-21 after claiming a deduction under Section 80P of the Income Tax Act. However, the Assessing Officer (AO) disallowed a part of the Section 80P deduction, specifically ₹12,18,305 in interest income, and added ₹24,000 in rental income. Following this, the cooperative society appealed to the Commissioner of Income Tax (Appeals) [CIT(A)] but missed the deadline by 236 days. The CIT(A) rejected this appeal solely on grounds of the delay, leading Sekhari Ganna Vikas Samiti to escalate the case to the ITAT.
The ITAT, referencing several Supreme Court rulings, emphasized that courts should adopt a liberal stance when reviewing delays to avoid dismissing cases based on procedural grounds alone. Specifically, the Tribunal cited the case of Collector Land Acquisition vs. Mst. Katiji, where the Apex Court advocated for accepting delay explanations except in instances of negligence or lack of good faith. The Tribunal found that the cooperative society’s delay did not reflect any intentional fault or negligence and decided to condone the delay to ensure a fair hearing. Consequently, the ITAT set aside the CIT(A)’s decision, restoring the case to the CIT(A) for review on its merits, allowing the assessee a fresh opportunity to present their case in accordance with the law.
