Due knowledge of Outcome for Withdrawal Application tendered before FAA: ITAT refuses to Condone delay for 239 days [Read Order]

The Income Tax Appellate Tribunal (ITAT), Pune Bench refused to condone delay of 239 days as there was due knowledge of outcome for withdrawal application tendered before First Appellate Authority (FAA).

The appellant, Vardhaman Nagari Sahakari Pathsanstha Ltd claimed to be a registered Cooperative Society and is stated to have engaged in providing credit facilities to its members. The AO, recorded the reasons and after obtaining the approval, initiated the proceedings u/s 147 by issue of notice u/s 148 of the Act, thereby calling upon the assessee to file ITR and explain the nature source of such cash deposits.

Upon no response, the assessee was again put to further notice u/s 142(1) which too remained futile, in the event, a detailed information from the ‘Axis Bank’ u/s 133(6) of the Act was called & taken on record, and considering the collective facts, a final show cause notice u/s 144 of the Act was issued to the appellant as last resort.

The assessee later filed an ITR which was later accepted by the AO. Without no substantial ground the assessee, preferred an appeal before the FAA which was later dismissed. Later an appeal was preferred before the Tribunal with a delay of 314 days.

The Counsel for the assessee submitted that the fractional period of delay falling from the period 15/03/2020 upto the date of institution i.e. 27/07/2020 stands saved by Relaxation Act, consequently 239 days of delay calls for cause of sufficiency with adequate and enough reasoning displaying nondeliberate accidental drive.

A Bench consisting of S S Viswanethra Ravi, Judicial Member and G D Padmahshali, Accountant Member held that “It is significant to note that applicants are not rustic, ignorant villagers; they constitute a corporal body and managed by board with educated representatives besides equipping themselves with expert professionals who know well where the appellant’s interest lies. Since the appellant with the due knowledge of outcome of withdrawal application tendered before FAA, did not bother for its own interest and rights and slept over for long period without any cogent and convincing justification, therefore, in the absence of cogent reasons to condone enormous delay of 239 days in filing appeal, the petition for delay condonation stands rejected, we therefore do not express any opinion on merits of the case.”

To Read the full text of the Order CLICK HERE

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