TaxTMI 
TaxTMI 
2024 (10) TMI 27
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....hereby the Ld. CIT(A) had dismissed the appeal of the Assessee against the Assessment Order, dated 26/09/2022, passed under Section 143(3) read with Section 144 of the Income Tax Act, 1961 [hereinafter referred to as 'the Act']. 2. The appellant has raised following grounds of appeal : "1. On the facts and in the circumstances of the case and in law the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) was not justified in sustaining the additions made by the Assessing Officer by disallowing the bonafide claim of deduction a/s 80P(2)(a)(il of the Income Tax Act, 1961 in respect of income attributable to providing credit facilities to the members. 2. On the facts and in the circumstances of....
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....e Ld. Commissioner of Income Tax (Appeals) is bad in law." 3. The relevant facts in brief are that the Assessee/Appellant is a Co-operative Credit Society registered under Maharashtra Cooperative Societies Act, 1960 and engaged in providing credit facilities to its members. It is stated that the Appellant does not undertake any business with a person other than its own members. In the return of income for the Assessment Year 2020-2021, filed on 28/11/2020, the Appellant declared income of INR. 2,71,810/- after claiming deduction of INR. 26,14,333/- under Section 80P of the Act in respect of income derived from providing credit facilities to its members and interest/dividend received from co-operative banks. However, the while framing ass....
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....below. "Respected sir Due to ill health of one of the promoter and director of society there is delay in filing of appeal. Affidavit for the same attached." 3.3. Apart from the above reason for condonation of delay in filing of appeal, the appellant has also filed an affidavit dated 23.02.2023 sworn by one Mr. Sandeep Baban Wadkar in the capacity of Manager of the co-operative society. In the said affidavit the following reason has been given for delay in institution of appeal - "We are vernacular educated and having limited knowledge of Income tax provisions. We were not aware legal intricacies of the matter and income tax proceedings and subsequently followed by the Assessment order passed by the Assessment Unit....
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....2020, was filed within limitation cannot be basis of rejecting the explanation offered by the Appellant for delay in filing the appeal for the Assessment Year 2020-2021. We note that it has not been disputed by the CIT(A) that the person in-charge was not keeping good health or that such person was educated in vernacular and had limited knowledge of income tax laws. In the case of Collector of Land Acquisition Vs. Mst. Katiji & others AIR 1987 1353 (SC), the Hon'ble Supreme Court has emphasized that substantial justice should prevail over technical considerations and held that the requirement that every day's delay must be explained does not mean that a pedantic approach should be taken. According to the Hon'ble Supreme Court the aforesaid ....
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....) of the Act would not get attracted in the present case and the Appellant would be eligible to claim deduction under Section 80P of the Act. Identical view has been taken by the Hon'ble Supreme Court in case of The Pr. Commissioner of Income Tax-17, Mumbai Vs, M/s Annasaheb Patil Mathadi Kamgar Sahakari Patpedhi Maryadit [Civil Appeal No. 8719/2022: dated 20/04/2023]. Thus, as regards profits and gains earned by the Appellant from the business of provide credit facility to its members, the Appellant would be entitled to deduction under section 80P2(a)(i) of the Act. Whereas in respect of interest received from Co-operative Bank, the Appellant would be entitled to deduction under Section 80P2(d) of the Act since a co-operative bank continue....