Society's 530-day delay in filing appeal rejected due to conscious choice not to challenge earlier order

ITAT Raipur dismissed the assessee society's application for condonation of 530-day delay in filing appeal. The assessee claimed delay occurred due to approaching wrong forum under Section 154, but ITAT found the assessee had consciously chosen not to challenge CIT(Appeals) order dated 19.04.2022 which approved CPC Bengaluru's denial of Section 80P deduction. ITAT held there was no bonafide mistake or justifiable reason for the delay, rejecting the claim that wrong forum was approached. The delay condonation application was dismissed for lack of sufficient cause.

---

---

Issues Involved:
1. Disallowance of deduction claimed under Section 80P of the Income-tax Act.
2. Confirmation of the impugned intimation order under Section 143(1).
3. Condonation of delay in filing the appeal.

Summary:

1. Disallowance of Deduction Claimed under Section 80P:
The assessee society filed its return of income for A.Y. 2018-19 on 25.01.2019, declaring an income of Rs. Nil after claiming a deduction of Rs. 16,47,750/- under Section 80P(2)(a)(i) of the Income-tax Act. The Centralized Processing Center (CPC), Bengaluru disallowed the deduction under Section 80AC because the return was filed beyond the stipulated time specified under Section 139(1).

2. Confirmation of the Impugned Intimation Order under Section 143(1):
The Commissioner of Income-Tax (Appeals), National Faceless Appeal Center (NFAC), upheld the disallowance made by the CPC. The CIT(A) noted that Section 80AC explicitly states that no deduction under Chapter VI A - Section C, including Section 80P, would be allowed if the return is not filed on or before the due date specified under Section 139(1). The CIT(A) confirmed the disallowance as the assessee failed to file the return within the due date and did not provide any reasonable cause for the delay.

3. Condonation of Delay in Filing the Appeal:
The assessee filed an appeal with a delay of 530 days, explaining that it initially sought rectification under Section 154 based on advice that the disallowance was effective from 01.04.2021. The application under Section 154 was rejected by the CPC and subsequently upheld by the CIT(A) and the Tribunal. The assessee claimed it realized the correct remedy was to appeal against the CIT(A)'s order only after the Tribunal's dismissal of the Section 154 application.

The Tribunal found the claim of a bonafide mistake unconvincing, noting that the assessee consciously chose not to appeal the CIT(A)'s order within the stipulated time. The Tribunal observed that the delay was due to the assessee's lackadaisical approach and not a bonafide mistake. Consequently, the Tribunal declined to condone the delay and dismissed the appeal as barred by limitation.

Conclusion:
The appeal was dismissed on the grounds that the assessee failed to file the return within the due date, did not provide a reasonable cause for the delay, and did not appeal the CIT(A)'s order within the stipulated time. The Tribunal declined to condone the delay of 530 days, citing the assessee's lack of a justifiable reason for the delay.

---