RMS Karamchari Sakh And Bachat Sahakari Samiti Limited Vs ITO (ITAT Jaipur)
Delay Cannot Defeat Justice: Jaipur ITAT Revives Section 80P Claims by Condoning 452-Day ; 59-Day Delays
Summary: The assessee, RMS Karamchari Sakh & Bachat Sahakari Samiti Limited, was a co-operative society registered under the Rajasthan State Co-operative Societies Act, 1953. Its principal object was the welfare & socio-economic upliftment of railway employees & their families. The society was managed by retired employees of the Indian Railways.
For AY 2023-24, the assessee filed its return declaring gross total income of ₹15,03,683. After claiming deduction of the income u/s 80P, it declared nil taxable income. While processing the return u/s 143(1), the AO disallowed the deduction because the return had been filed beyond the due date prescribed u/s 139(1).
For AY 2024-25, a similar adjustment was made in respect of the assessee’s deduction of ₹10,97,530 u/s 80P. The deduction was again denied solely because of the delayed filing of the return.
The assessee challenged the intimations before the CIT(A). However, the appeals were delayed by 452 days for AY 2023-24 & 59 days for AY 2024-25. The CIT(A) declined to condone the delays & dismissed both appeals in limine, without examining the eligibility of the assessee’s claims u/s 80P on merits. The assessee accordingly approached the Jaipur Tribunal.
Issue before the Tribunal
The principal issue was whether the assessee had demonstrated “sufficient cause” for the delays in filing the appeals before the CIT(A) & whether the matters should be restored for fresh adjudication on merits.
