Rajrshi Shahu Nagari Vs ITO (ITAT Pune)
Tribunal Condoned 930 Days Delay & Quashed Penalty Assessee, a Co-operative Credit Society, challenged penalty of ₹40,000 levied u/s 272A(1)(d) for non-compliance with notices. There was a delay of 930 days in filing appeal. Assessee explained that the delay occurred due to PAN migration issues (old PAN for BOI, new PAN for Society) & technical difficulties, compounded by lack of proper guidance from the local tax practitioner. Tribunal, applying Collector, Land Acquisition Vs Katiji (1987) 2 SCC 107 & Inder Singh Vs State of MP (2025 INSC 382), condoned the delay considering “reasonable cause.”
On merits, AO had levied penalty @ ₹10,000 for four defaults of non-appearance against notices u/s 143(3) & 142(1). CIT(A) confirmed penalty. Tribunal noted that all notices were issued during the Covid-19 pandemic when movement restrictions were in force, &the Hon’ble Supreme Court in Cognizance for Extension of Limitation, In re (2022) 441 ITR 722 (SC) had excluded almost two years from limitation due to extraordinary hardship to litigants. Tribunal held that the Assessee deserved immunity u/s 273B, as non-compliance was not wilful but due to pandemic circumstances.
Delay of 930 days condoned. Penalty of ₹40,000 u/s 272A(1)(d) deleted. Appeal allowed in favour of Assessee.
