S. 254(1) : Appellate Tribunal-Powers-Condonation of Delay-Co-operative society-Appeal filed after 13 years-Delay caused due to bona fide belief that rectification would be carried out by the Department, change in managing committee, dependence on accountant and Covid-related disruptions-Delay condoned and matter restored for adjudication on merits. [S. 80P(2)(d), 143(1), 249(3)]
The assessee, a co-operative housing society, filed an appeal against the denial of deduction under section 80P(2)(d) amounting to ₹13,77,502 made by CPC while processing the return under section 143(1). The CIT(A) dismissed the appeal in limine on the ground that it was filed after a delay of more than thirteen years. The assessee explained that the delay occurred due to a bona fide belief that the issue would be rectified by the Assessing Officer, reliance on the advice of the tax consultant not to file an appeal, change in office bearers of the society every three years, dependence on the accountant handling tax matters, and disruptions caused by the Covid-19 pandemic. The Tribunal held that the delay was attributable to circumstances beyond the assessee’s control and that there was no mala fide intention or deliberate inaction. Following its earlier decision in Torino Co-operative Housing Society Ltd. v. ITO (ITA No. 1788/Mum/2026 dt. 05.05.2026) and considering that the assessee appeared prima facie entitled to deduction under section 80P(2)(d), the Tribunal condoned the delay, set aside the orders of the authorities below and restored the matter to the Assessing Officer for fresh adjudication of the claim after granting adequate opportunity of hearing. (ITO (ITAT Mumbai)(SMC), ITA No. 2965/Mum/2026, order dated 25.05.2026. (A.Y. 2012-13)
Bakhtawar Co-Operative Housing Society Ltd. v. ITO (Mum) (Trib.), www.itatonline.org.
(Coram : Hon’ble Smt. Beena Pillai, JM and Hon’ble Shri Arun Khodpia, AM)