TaxTMI 
TaxTMI 
2026 (2) TMI 1438
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....peal, though a copy of the letter was placed along with written submissions. 3. The learned Commissioner of Income Tax (Appeals) erred in not condoning the delay in filing the appeal and in holding that there exists no sufficient and good reason for condoning the delay. 4. The Learned Commissioner of Income Tax (Appeals) ought to have appreciated that the appellant has a good case on merits and which disallowances are against the judicial pronouncements. 5. The Order of the Learned Commissioner of Income Tax (Appeals) is not sustainable either on law or on facts of the appellant's case. Total tax effect (see note below) Rs. 13,70,165/- 3. The brief fact of the case are that the assessee is a Credit Co operative Society registered under the Karnataka Souhardha Federal Co-operative Act 1997 vide registration certificate no: DRS/REG/282/CR/7/2010-11 dated 16/07/2010 issued by Deputy Registrar of Co-operative, Kolar, Karnataka. The assessee filed its return of income for the AY 2020-21 on 29/12/2020 declaring gross total income of Rs. 40,61,023/- and claim deduction u....
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....contended that the assessee is a credit Co-operative society engaged in the business of providing loans to its own members/ share holders and accepting deposits from members/ share holders and therefore interest income is eligible for deduction u/s.80P(2)(a)(i) of the Act. Further, the assessee stated that in AY 2018-19, the deduction u/s.80P was allowed on such interest receipts. 3.2 The AO on the other hand found that the business income includes interest income of Rs. 27,96,538/- which is received on investments in co-operative banks/ commercial banks out of the surplus funds of the society. Any interest income arising from deposits/ investment of funds in banks is in the nature of "Income from other sources" forms part of the income u/s. 56 of the Act and cannot be categorized as income from profit and gains of business of the assessee. Since the deduction u/s. 80P(2)(a)(i) available only for the profit and gains of business, the said deduction is not available to the interest income which is in the nature of "other income" which is not attributable to the business activity and accordingly interest income earned by the society to the tune of Rs. 27,96,538/- was held to the n....
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....r delay as contended by the assessee is that the assessee had engaged Sri. K.I. Ravindranth, Chartered Accountant having office at Challakere, Chithradurga District to file Income Tax Returns and has been looking after income tax related works. It is submitted that the email id provided in the e-filing portal of the assessee was that of Sri. K.I. Ravindranth, Chartered Accountant. The Chartered Accountant on behalf of the assessee filed particulars required for completion of assessment proceedings. The assessee got know of the order passed u/s. 143(3) of the Act only when the refund due for AY 2024-25 got adjusted and had received a call from the Department for payment of outstanding demand. The assessee was under the bonafide believe that Sri. K.I. Ravindranth, Chartered Accountant have taken necessary steps with regard to assessment order passed for the AY 2020-21. The assessee when contacted Sri. K.I. Ravindranth, Chartered Accountant about the refund adjustment and demand outstanding, the assessee has been informed that no appeal is filed for AY 2020-21. Thereafter, the assessee got the order downloaded and sought the professional help in filing the appeal and in the process th....
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.... the impediment of the Maxim Vigilantibus Non Dormenteibus Jura Subvenitent that ensures the case is filed within the stipulated time frame to avoid unnecessary delays. On the other hand, the condonation of delay is the safeguard to the law of limitation and bars certain cases in which the delay in filing the appeal is justifiable i.e. can be backed by having "sufficient cause" 9.4 In the case in hand, the delay occasioned in bringing the appeal before the ld. CIT(A)/NFAC was 840 days. We are of the considered opinion that there was no sufficient cause demonstrated by the assessee in filing the appeal with a huge delay of 840 days. In fact the assessee is trying to shift the entire blame on a Chartered Accountant. The plea advanced only to get out of the rigor of law. Rather, it can be said that the assessee had made an attempt to take a false plea to overcome the issue of limitation though they themself remained callous to its own cause. 9.5 The Apex court in the case of Rajneesh Kumar & Anr. Vs. Ved Prakash in SLP (Civil Nos.935-936 of 2021 dated 21.11.2024) held as follows: "10. It appears that the entire blame has been thrown on the head of the advocate who was a....
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....hing is clear they chose to non-cooperate with the court. Having adopted such a stand towards the court, the defendant has no right to ask its indulgence. Putting the entire blame upon the advocate and trying to make it out as if they were totally unaware of the nature or significance of the proceedings is a theory which cannot be accepted and ought not to have been accepted." (Emphasis supplied) 12. As regards the law of limitation, we may refer to the decision of this Court in Bharat Barrel & Drum MFG Go. v. The Employees State Insurance Corporation, (1971) 2 SCC 860, wherein this Court held as under:- "The necessity for enacting periods of limitation is to ensure that actions are commenced within a particular period, firstly to assure the availability of evidence documentary as well as oral to enable the defend and to contest the claim against him; secondly to give effect to the principle that law does not assist a person who is inactive and sleeps over his rights by allowing them when challenged or disputed to remain dormant without asserting them in a Court of law. The principle which forms the basis of this rule is expressed in the maximum vigilantibus, n....
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....e Court in H. Guruswamy & Ors. Vs. A. Krishnaiah (Civil Appeal No. 317 of 2025 dated 8.1.2025) has observed as under: 13. "We are at our wits end to understand why the High Court overlooked all the aforesaid aspects. What was the good reason for the High Court to ignore all this? Time and again, the Supreme Court has reminded the District judiciary as well the High courts that the concepts such as "liberal approach", "Justice oriented approach", "substantial justice" should not be employed to frustrate or jettison the substantial law of limitation. 14. We are constrained to observe that the High Court has exhibited complete absence of judicial conscience and restraints, which a judge is expected to maintain while adjudicating a list between the parties. 15. The rules of limitation are not meant to destroy the rights of parties. They are meant to see that the parties do not resort to dilatory tactics but seek their remedy promptly. 16. The length of the delay is definitely a relevant matter which the court must take into consideration while considering whether the delay should be condoned or not. From the tenor of the approach of the respondents h....