In a significant relief to an apartment owners association, the Income Tax Appellate Tribunal ( ITAT ), Bangalore Bench, has set aside the order of the Commissioner of Income Tax ( Appeals ) CIT( A ) and granted the association a second chance to present its case. The ITAT’s decision came in response to a 367-day delay in filing the appeal, which was attributed to a technical glitch in updating the association’s email ID in the Income Tax records.
The dispute arose when the National Faceless Assessment Centre ( NFAC ), Delhi, passed an assessment order for the financial year 2022-23 against the Elegant Embassy III Apartment Owners Association, Bengaluru.
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The association, a non-profit organization, filed an appeal before the CIT(A) but faced dismissal due to the delay. The CIT(A) refused to condone the delay, prompting the association to approach the ITAT.
Representing the association, Kirat Singh argued that the delay was caused by unforeseen technical issues. The association’s managing committee, which is elected every two years on an honorary basis, had changed in May 2022.
The new committee attempted to update the email ID in the Income Tax records but encountered difficulties in receiving the One-Time Password (OTP) as the previous president, whose email ID was registered, was abroad at the time. This led to the delay in filing the appeal.
The association emphasized its non-profit nature and the voluntary service of its committee members, who receive no remuneration. Advocate Singh urged the ITAT to condone the delay and allow the appeal to be heard on its merits, assuring compliance with all procedural requirements.
ITAT sets aside Ex-Parte Order after Technical Glitches led to Non-Compliance
The Income Tax Department’s representative did not raise any serious objections to the request for remitting the matter back to the CIT(A). After considering the submissions, the ITAT bench comprising (Accountant Member) Waseem Ahmed and (Judicial Member) Keshav Dubey ruled in favor of the association. The tribunal acknowledged the technical difficulties faced by the assessee and directed the CIT(A) to condone the delay and adjudicate the appeal afresh on its merits.
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The ITAT also instructed the association to ensure compliance with procedural formalities and avoid unnecessary adjournments. The appeal was partly allowed for statistical purposes, marking a victory for the apartment owners’ association.
This decision highlights the importance of addressing technical glitches in tax proceedings and underscores the judiciary’s role in ensuring fair play and justice, especially for non-profit entities.
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