Society's 493-day delay in filing appeal rejected despite claims of rural location and accountant's death

ITAT Raipur dismissed an appeal by an assessee society as time-barred, rejecting the condonation of delay application for a 493-day delay in filing. The society claimed delay was due to their chartered accountant's death, non-computer literate staff in rural areas, manual record-keeping, and poor internet access. The tribunal found these reasons insufficient and evidencing callous conduct, noting the society's non-participation in CIT(Appeals) proceedings despite proper notice. The tribunal emphasized that limitation law must be construed strictly and all assessees must comply with statutory obligations within prescribed timeframes regardless of locational disadvantages or staff limitations.

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Issues Involved:
1. Disallowance of Deduction u/s 80P(2).
2. Condonation of Delay in Filing Appeals.
3. Non-Compliance by the Assessee before CIT(A).

Summary:

1. Disallowance of Deduction u/s 80P(2):
The assessee societies challenged the disallowance of deductions u/s 80P(2) made by the Assessing Officer (AO). The AO had allowed only a general deduction of Rs. 50,000/- u/s 80P(2)(GJ)(11) and disallowed other income including dividend income and membership fees, totaling Rs. 7,15,729/-. The CIT(A) upheld the AO's decision due to the assessee's failure to provide corroborative evidence or explanation during the appellate proceedings.

2. Condonation of Delay in Filing Appeals:
The appeals involved significant delays, ranging up to 542 days. The assessee societies attributed the delay to the unfortunate demise of their chartered accountant, lack of computer literacy among staff, manual maintenance of books, and poor internet access in rural areas. The Tribunal, however, found these reasons insufficient to justify the inordinate delay. It emphasized that the assessee had adopted a "lackadaisical approach" and failed to make necessary arrangements to prosecute the appeal timely. The Tribunal highlighted that the delay was not due to bona fide reasons but sheer negligence and carelessness on the part of the assessee societies.

3. Non-Compliance by the Assessee before CIT(A):
The assessee societies did not comply with multiple notices issued by the CIT(A) and failed to appear for hearings. The CIT(A) proceeded ex-parte and dismissed the appeals based on available records, citing the assessee's non-cooperative behavior. The Tribunal supported this decision, referencing multiple judicial pronouncements that uphold the dismissal of appeals for non-prosecution when the assessee fails to appear despite being duly notified.

Conclusion:
The Tribunal dismissed all the appeals filed by the assessee societies due to the inordinate delay in filing and lack of sufficient cause for the delay. It also upheld the CIT(A)'s decision to dismiss the appeals for non-compliance and non-prosecution. The Tribunal emphasized the importance of adhering to statutory obligations and maintaining a cooperative approach during appellate proceedings.

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