Andhra Bank Farmers Service Cooperative Society Limited Vs ITO (ITAT Hyderabad)
The assessee, a cooperative society, filed appeals before the Income Tax Appellate Tribunal (ITAT), Hyderabad, challenging orders of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), for Assessment Years 2015-16 and 2016-17. There was a delay of 303 days in filing the appeals. The assessee sought condonation of the delay, explaining that it was under a bona fide belief that it should wait for the Assessing Officer to pass consequential orders pursuant to the CIT(A)’s directions regarding deduction under Section 80P. The Revenue opposed the condonation, arguing that no sufficient cause had been shown and that the appeals were not filed even within the limitation period after the consequential orders were passed.
The Tribunal noted that the assessee had explained the delay on the ground that it was awaiting consequential orders and believed that further action was required only after those orders were received. Considering that the assessee was a cooperative society and that the dispute involved the eligibility of deduction under Section 80P in respect of interest earned from deposits with Andhra Bank (now merged with Union Bank of India), the Tribunal found that the assessee had raised an arguable case on merits. Taking a lenient view, the Tribunal condoned the delay of 303 days subject to payment of costs of ₹10,000 in each appeal to the ITAT Tax Bar Association, Hyderabad.
