Delay of 163 days due to Late Receipt of Intimation u/s 143(1) via E-Mail: ITAT allows delay Condonation Petition filed by IOB Employees Co-operative Society [Read Order]

Income Tax Appellate Tribunal (ITAT), Mumbai allowed delay condonation petition filed by Indian Overseas Bank Employees Co-operative Society on delay of 163 days due to late receipt of intimation under Section 143(1) via email.

The grounds of appeal raised by the assessee, Indian Overseas Bank (Mah) Employees Co-operative Credit Society Ltd pertain to disallowance of deduction under section 80P(2)(i) and 80(P)(2)(d). The brief facts are that the assessee is a co-operative credit society registered under Maharashtra Co-operative Societies Act, 1960 which is formed or the welfare of the employees of M/s Indian Overseas Bank Ltd. The assessee filed its return of income at Nil after claiming deduction under section 80P of Rs.40,30,464/-. The deduction under section 80P was denied on the ground that the return was filed belatedly.

Aggrieved by this, the assessee filed appeal before the CIT(A) manually and electronically on 09/12/2019 after a delay of 163 days which was not accepted by the CIT(A) as no reason was adduced in Form 35. The CIT(A) dismissed the appeal on the ground that the assessee has failed to explain the delay in filing the appeal and that there was no sufficient cause for the delay. Aggrieved, the assessee is in appeal before the Tribunal.

The Counsel for the assessee, Prakash Jhunjhunwala submitted that there was no delay in filing the appeal as intimation under section 143(1) dated 29/06/2019 was served on the assessee on 26/11/2019 and that the appeal in manual form was filed in time on 09/12/2019 (within 30 days). The Counsel further stated that the assessee was not aware of the intimation passed under section 143(1) by the CPC on 29/06/2019 and that the communication was received by the assessee only on 26/11/2019 at 6.34 AM via email and the copies of the same has been furnished.

 The Counsel argued that the assessee is a non-profit motive co-operative credit society formed by the employees of Indian Overseas Bank Ltd which provides honorary services and there was no wilful delay or gross negligence on the part of the assessee in filing the appeal.

The bench consisting of Prashant Maharshi, Accountant Member and Kavitha Rajagopal, Judicial Member observed that “, we are of the considered view that the assessee has not wilfully delayed the filing of appeal and we find that there is no negligence on the part of the assessee, as the assessee has filed appeal manually in time. We find that the reasons mentioned are bonafide and it amounts to sufficient cause for the delay in filing appeal electronically before the CIT(A). Therefore, in the interest of natural justice, we condone the delay and restore the appeal to the file of the CIT(A)

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