TaxTMI 
TaxTMI 
2026 (8) TMI 129
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....donation of delay of 918 days in filing the appeal, explaining the reasons namely reshuffling and change of the society managing committee, delay in conducting election process and difficulty faced by the new committee to get proper legal assistance and guidance, therefore refusing to condone the delay and dismissing the appeal was not justified. 2. The Ld. CIT(A) failed to appreciate that the delay was due to bona fide reasons and assessee being a cooperative housing society functions through voluntary members who come forward and devote their time for managing the affairs of society, without any personal gain, the learned CIT(A) failed to appreciate that such housing society lacks proper guidance and in such complex tax issues the new managing committee had demonstrated sufficient and reasonable cause for the delay, which was neither found to be false, misleading, intentional nor deliberate. 3. The refusal to condone the delay and dismissal of the appeal without adjudication on merits shall put the society to undue hardship and financial constraint more particularly since the case on merits is to be allowed. Additions u/s. 80P(2)(d) of Rs. 34,12,756/-: ....
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.... in the impugned first appellate order in para-2.2 and 2.3. Ld. CIT(A) after having considered the same noted that the impugned assessment order is dated 19.12.2022 and the first appeal is filed on 24.07.2025 resulting in a delay of 918 days which is beyond the statutory limit prescribed u/s. 249(2). He noted the key reasons explained by the assessee for the said delay as- (i) reshuffling and change of the housing society's managing committee, which allegedly consumed considerable time in handing over affairs, (ii) restrictions and operational difficulties arising from post-COVID protocols, (iii) delay in conduct of elections of the new committee under the supervision of the State Co-operative Election Authority due to overlapping State elections, and (iv) difficulties in arranging proper legal and tax representation. 4.1. However, ld. CIT(A) did not find himself convinced with the detailed explanations given by the assessee for condoning the delay. Before us, ld. Counsel for the assessee referred to the affidavit wherein the explanation so given are reiterated. He pointed out that substantial period of delay is attributable to the impact ....
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....iary is respected not on account of its power to legalize injustice on technical grounds but because it is capable of removing injustice and is expected to do so." 5.2. Similarly, we would like to make reference to authoritative pronouncement of Hon'ble Supreme Court in the case of N. Balakrishnan Vs. M. Krishnamurthy (supra). It reads as under: "Rule of limitation are not meant to destroy the right of parties. They are meant to see that parties do not resort to dilatory tactics, but seek their remedy promptly. The object of providing a legal remedy is to repair the damage caused by reason of legal injury. Law of limitation fixes a life- span for such legal remedy for the redress of the legal injury so suffered. Time is precious and the wasted time would never revisit. During efflux of time newer causes would sprout up necessitating newer persons to seek legal remedy by approaching the courts. So a life span must be fixed for each remedy. Unending period for launching the remedy may lead to unending uncertainty and consequential anarchy. Law of limitation is thus founded on public policy. It is enshrined in the maxim Interest reipublicae up sit finis litium....
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....rs of the authorities below. The facts of the case have already been narrated in the above paragraph. 7. Considering the submissions made by the assessee before the ld. CIT(A) as well as contentions raised through its grounds in the present appeal, we do take note of Hon'ble Supreme Court's repeated emphasis on the view that "substantial justice" must prevail over technical lapses, we emphasize that the merits should not be stifled due to a failure to respond to notices, provided such failure is not mala fide. 8. In the light of the above, if we examine the facts, then it would reveal that there is delay of 918 days in filing of first appeal. For the just decision of the controversy, considering the explanation furnished by the assessee, we find it appropriate to condone the delay in filing the appeal before ld. CIT(A). 9. The issue involved in the present appeal is in respect of disallowance of deduction claimed by the assessee u/s. 80P(2)(d) on account of interest income earned from fixed deposits investments made with cooperative banks. Assessee is a cooperative housing society registered under Maharashtra State Cooperative Act, 1960 vide registration No. MUM/SR....
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....y be covered by the word "Co-operative Society". 9. Furthermore, even according to Section 56(i)(ccv) of the Banking Regulations Act, 1949, defines a primary Co-operative Society bank as the meaning of Co- Operative Society. Therefore, a Co-operative Society Ban. would be included in the words 'Co- operative Society'. 10. Admittedly, the interest which the assessee respondent had earned was from a Co-operative Society Bank Therefore, according to Sec. 80P(2)(d) of the IT. Act, the said amount of interest earned from a Co-operative Society Bank would be deductible from the gross income of the Co-operative Society in order to assess it: total income. Therefore, the Assessing Officer was not justified in denying the said deduction to the assessee respondent. 11. The learned counsel has relied on the case of Totgars Co- operative Sale Society Ltd. v. ITΟ (2010) 322 ITR 283/188 Taxman 282 (SC). However, the said case dealt with the interpretation, and the deduction, which would be applicable under Section 80P(2)(a)(i) of the I.T. Act. For, in the present case the interpretation that is required is of Section 80P(2)(d) of the L.T. Act and not Se....