Sai Souhardha Credit Co-operative Society Ltd. Vs ITO (Karnataka High Court)
A Delayed Appeal Gets a Second Life: CA’s Family Cancer Crisis Is “Sufficient Cause” u/s 249(3), Karnataka HC Restores Merits
Summary: In Sri Sai Souhardha Credit Co-operative Society Ltd. v. Income Tax Officer, the Karnataka High Court considered an assessee’s appeal u/s 260A concerning AY 2020-21. The assessment order was passed on 12.09.2022. The assessee challenged it before the Commissioner (Appeals) only on 28.01.2025, accompanied by an application seeking condonation of delay u/s 249(3).
The Commissioner (Appeals), by order dated 18.08.2025, refused to condone the delay & dismissed the appeal in limine without examining the assessment on merits. The Bangalore ITAT, through its order dated 24.02.2026 in ITA No.2342/Bang/2025, upheld that decision, holding that sufficient cause had not been established.
The assessee approached the High Court, questioning the threshold dismissal, adequacy of its explanation & failure to consider the Chartered Accountant’s letter explaining why the entrusted appeal was not filed within time.
Issue Before the Court
The central issue was whether the personal circumstances of the assessee’s authorised representative, whose wife was undergoing prolonged cancer treatment, constituted “sufficient cause” u/s 249(3) for condoning the substantial delay.
The connected issue was whether the High Court could consider an affidavit, medical records & death certificate produced for the first time before it, although those supporting documents had not been placed before the Commissioner (Appeals) or Tribunal.
