Durgapur Steel City Society for Education Vs ITO Ward 2(1) (Exemption) (ITAT Kolkata)
The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) dealt with an appeal filed by Durgapur Steel City Society for Education, a registered society engaged in providing skill-based education, particularly nursing training for marginalized women. The case centered on two issues: (i) condonation of delay in filing the appeal, and (ii) the assessee’s eligibility for exemption under sections 11 and 12 of the Income Tax Act, 1961, following registration under section 12A.
Background and Delay in Filing
The assessee was assessed as an Association of Persons (AOP) for AY 2015-16, with several additions made on account of messing charges, bank interest, and rent, on the ground that the society lacked registration under section 12A. The order was passed on 29.12.2017. The assessee filed an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)], NFAC, which was dismissed on 30.10.2023 due to non-compliance with hearing notices.
The assessee then approached the ITAT but filed the appeal with a delay of 440 days. The delay was attributed to mistaken advice from the previous consultant, who advised settling the dispute under the Direct Tax Vivad se Vishwas (DTVS) Scheme, 2020 and later under DTVS 2024, instead of pursuing the merits of the appeal. The assessee contended that this advice, coupled with lack of communication, led to the delay.
The Tribunal considered the plea and applied the Supreme Court’s ruling in Collector of Land Acquisition vs. Mst. Katiji (1987) 167 ITR 471 (SC), where it was held that courts should adopt a liberal approach in condoning delays to advance substantial justice. Accordingly, the ITAT condoned the delay and admitted the appeal.
