Income Tax Appellate Tribunal - Jodhpur
Adarsh Credit Cooperative Society Ltd. ... vs Dcit, Central Circle-1, Jodhpur on 17 March, 2025
ITA No. 5/lodh/2024 (AY. 2012-13)
ITA No. 6/iodh/2024 (AY, 2013-14)
ITA No. 7/Jodh/2024 (AY. 2014-15)
ITA No. 8/lodh/2024 (AY, 2015-16)
ITA No. 9/lodh/2024 (AY. 2016-17)
ITA No. 10/Jodh/2024 (AY. 2017-18)
ITA No. Liflodh/2024 (A.¥. 2018-19)
ITA No. 12/Jodh/2024 (AY, 2019-20)
Adarsh Credit Cooperative Society Ltd., | Vs. | DCIT, Central Circle-1,
Adarsh Bhawan, 14 Vidhy Vihar Colony, Udaipur
Ashram Road, Usmanpura,
Ahmedabad- 380013
PAN No. AAAIAOZ96! ee ee
Asggsses Sy Shri Saurabh Soparkar, Advocate
Revenue by Shri O.P, Meena, CIT- D.R.
Date of Hearing 03.03.2025.
Date of Pronouncement {> 03.2025.
ORDER
PER BENCH:
The bunch of appeals by the assessee is directed against the separate order of the Commissioner of Income Tax (appeal), Jalpur- 5 [hereinafter referred to as "the CIT appeal") challenging therein rejection of its application for condonation of Deley and consequently dismissal of the appeals as not admitted in violation of principles of natural justice.
ete pe @ ay aN aN o Pay ITA No. § to 12Modh/2024 Assessment Year 2012-13 ta 2019-20
2. Considering common issue on identical facts, these appeals were heard together and adjudication by this consolidated order for sake of convenience and brevity. We take the appeal in [TA No. 5/Jodh/2024 in respect with Assessment Year 2012-173, as a lead case for discussion and adjudication of the issue.
3. At the time of hearing the Ld. Counsel of the assessee submitted that Sh. Hirabhai Somabhail Patel (Retd. [AS} was appointed as the official llquidator of Adarsh Credit Co-Operative Society Limited vide order dated 6 December 2018 issued under section 86 of the Multi State Co-operative Societies Act, 2002. However, the Hon'ble Gujarat High Court vide order dated 20th December 2018 inSCA 19619 of 2018 Jamil Ahmed, Director, Adarsh Credit Co-Operalive Society lid v. Central Registrar, De Abhiluksh Likhi & Anr, ordered status quo to be maintained qua Adarsh Credit Cooperative Society Limited which prevented nim from taking charge over the affairs of the Co-operative Society and thereafter the Hon'ble Gujarat High Court in SCA 19619 of 2018 vide order dated 66/09/2019 quashed and set aside his appointment as the official Hcuidator of Adarsh Credit Co-Operative Society Limited.
3.1 The Ld. AR further submitted that the Central Registrar re-appointed Sh. Hirabhai Somabhai Patel (Retd. [AS) as the official liquidator of Adarsh Credit Co- Operative Society Limited vide order dated 29th November 2019 with intimation to of aforesaid appointment of the Liquidator to Director General of income Tax (investigations), Rajasthan vide order dated 29th November 2019 and the new ot! the RX wa aN as iA Na, 5 ta l2flodh/2azd Assessment Year 2012-13 to 2079-20 address Le. the registered office address of the official liquidator was also informed to the board, 3.4 The AR also stated that the Covid-19 engulfed the country in 2020, and the Hon'ble supreme Court of India vide its order in Suo Moto Writ P/L. 3/2030 extended the limitation period for filing various appeals up to 2022. He emphasized that the Assessment order was passed under section 144 of the income Tax Act, 1964, invoking provisions of best judgement, an ex-parte order qua the assessee society where the Assessment order indicated the address as ADARSH PRINTER BHAWAN RAJMATA DHARAMSALA, SIROHI 307001, Rajasthan, India, which was seized to be the registered office after appointment of the Official Liquidator. And thus, the order was never communicated before 2023 to the official liquidator who came to know about the said order only after the Tax Recovery Officer intlated recovery proceedings. As soon as the same came ta notice of the Official Liquidator, the appeal was campiled and filed. The AR contended that all these details were furnished before the Ld. CIT Appeal, however, having not satishied rejected the condonation of delay and dismissed the appeal as not admitted. He requested to condone the delay in filing appeal! before CIT Appeal and remand the matter to adjudicate on merits. in support to substantiate the cause of delay, he fled an affidavit of the official liquidator certified by Registered Notary which reads as under:
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cae ve ges wi eae Lae Soin Mev 8 peaeeee? fur Siting defoved appests before the Canned auiont Vese 207 sauueut orders pertaining fey i, Hirabhai Somabhai Patel (Retd, 145), Official Liquidator of Adarsh Credit Co-
Operative Society Limited, aged about 68 years, sun of Somabhai Lakhubhai Patel ei identified by PAN, ACIPP49SA presently residing at Address Plot No. 338, Sector No. 88, CH Road, Gandhinagar. Gujarat-382007 do solemnly affirm and state on oath as ce oO nieewenp pelle under:
That | was appointed as the official Hauldator of Adarsh Credit Co-Operative Society Limited vide order dated 6" December 2018 issued under section 86 of the Multi Stare Co-operative Sovisties Act, 2003 =) That the Hon'ble Gujarat High Court vide order dated 26" December 2018 in SCA 19649 of 2018 Jamil Aimed, Director Adaryit Credit Co-Cherative Soctery Lad y, Centra' Registran De Abhileksh Likhi & Aur, ordexed status quo to be maintained Hua Adarsh Credit Co-Operative Society Limited whieh prevented me from iaking charge over the affairs of the Co-operative Society.
fond Nee That The Hon'ble Guyarat High Court in SCA 19619 of 2018 vide order dated Gh/DM2019 quashed and set aside miy appointment as the official liquidator of Adarsh Credit Co-Operative Society Limited,
4) That the Central Registrar re-appointed me as the official liquidator of Adarsh Credit Co-Operative Society Limited vide order dated 29° November 2019.
For, Adarah Credit EVEN Seiiay Lig.
S Cee HS. Patel EAS R. Liguidatar oy HA No. 5 to 124o0dh/2024 Assessment Year 2012-13 to 2019-26 ~ sy oy 7 & Rte 3} that te assessment onder for Assessment Year 2012-13 was served on me at ms residence on O7" January 2020 but ag | was in the process of taking charge of the operations of Adarsh Credit Co-Operative Society Limited from December 201? to March 2029, { was unable to file an appeal against the said order within the limitation period presertbed in baw,
6) That Adarsh Credit Co-operative Society has about 1£,50,000 members and due to the j burden of postal claims being received from them on Uquidation of the society was i ; : < fagy VE te ED with} i unable io file appeal against the Assessment order for Assessment Year 2012-13 within i the limitation period pregeribed in faw. iat + ret ~ P ms « a 4 , ' 7) That qua the delay in ling of appeal for Assessment Years 2013-14 to 2019-20, the said orders were never served on me at ory residence unlike the assessment order for Assosament year 2012-13, &) The assesament orders for the Assessment Years 2013-14 to 2019-20 were served ai the we branch office of Adarsh Credit Co-Operative Society Limited, located at Adarsh Printer Bhawan, Kannata Daaramsaia, Siron GU/IUL, Lis premise wap fenled' anu nub upuder ay control or supervision, HR was closed following the arrest of Rahul Modi, the Former Managing Director & CEO of Adarsh Credit Co-Operative Society Limited. due to non- payment of rent by Adarsh Credit Co-Operative Society Limited since March 2019, due to liquidity issues, 9} That the registered office of Adarsh Credit Co-Qperative Society Limited was shified ts Ahmedabad at Second Floor, 14 Vidya Vihar Colony, Opposite Hotel Fortune Landmark, Usmanpura, Abniedabad-380013, Gajarat on 16" September 2615,
10) That} did not have access to the portal up to 07" Cecember 2029. at which date | gat . " oo the credentials of the portal updated and gained access to the Inconte Tee Portal, it) That came to know about the avsessment orders being passed raising demands against Adarsh Credit Co-Operative Society Limited only on 27" December 2022 when the 35 a & Tax Recovery Offic y SeNE Nie & communication vide ITBASCOMI/EY! yo oe hs weve epoonnaptip i"
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Weng renee con A ebaZ/20 Exp. OP, B 5 ITA No. 5 to 12Aladh/2024 Assessment Year 2012-13 ta 2019-20 we sy " ~~ WS EDARI TL O49C1) regarding recovery of dues for Assessment Year 2012-15 to 209. an.
AZ) Phat | copied to the said etier on 3% January 2023 informing the Tra Recovery Officer Ng ¢ ~ Wis halt any recovery proceedings against Adarsh Credit Co-Operative Society Limited § as apoeals were being filed agzainsl the sald assessment orders.
13} That due to the aforesaid reasons there was a delay in filling of appeals before the CIT {Appeals}.
id) Phat E had no intention to jeopardize the interest of the revenue by delaying the Gling of the appeal, VERIFICATION {, Hirabhat Somabhai Patel ihe above-named desonent do hereby verily that the contents of para t fad are true fu the Dest Gl oly Anuvidedge aud Wie cufienis ui pata > fu f4 are Yue ke the best of my belief.
Sgr, HS. Patel IAS 8.
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4 Cews. ' 'of cased eee ponee "Ay wen £0 heed Pad rapes, the feet chest C3 poere, " ve poe Peal ay ty [an hae . eG er 'ad Py wot, ro orbee on had ws ated shed heat rae aL ti i _. o% Mbeoe mo ore -- us, LY we St hoe / oose "ft a * ret : ft cay weeie teen @ w i gee Sonn ce aoe vgeg chow : y re nd oS whee rere ae rea sae 'here oo 3 hdewe aad a ead iTA No. § to 13 flodh/2024 Assessment Year 2012-13 to 2019-2 Credit Co-Operative Society Ltd v. Central Registrar, De Abhiluksh Likhi & Anr, ordered status quo to be maintained qua Adarsh Credit Cooperative Society Limited which prevented him fram taking charge over the affairs of the Co- operative Society and thereafter the Hon'ble Gujarat High Court in SCA 19619 of 2018 vide order dated 06/09/2019 quashed and set aside his appointment as the official liquidator of Adarsh Credit Co-Operative Society Limited.
7, Thus, the observation of the Ld. CIT appeal that assessment arder dated 30.12.2019 was served on Sh. HS. Patel, on assuming charge of the official liquidator of the assessee society on 07.01.2020 Is factually incorrect because the order was never communicated before 2023 to the official quidator who came to know about the said order only after the Tax Recovery Officer initiated recovery proceedings on his assuming charge as Official liquidator legally and the appeal was fled. The case laws relled by the Ld. CIT(A}) as referred by the Ld. DR are distinguishable on pecullar facts of the present case.
g, He further argued that the liquidator was in the process of taking charge of the operations of Adarsh Credit Cooperative Society Limited from December 2019 to March 2020, and he was unable to file an appeal against the said order within the limitation period prescribed in law for the aforesaid reasons which are duly supported and substantiated with affidavit of the Liquidater as above.
The AR further argued that qua the delay in filing of appeal for Assessment Years 10 iTA No. 5 te 12flodh/2034 Assessment Year 2012-13 to 2019-20 2013-14 to 7019-20, the said orders were never served on the Hquidator unlike the assessment order for Assessment year 2012-13. The assessment orders far the Assessment Years 2013-14 to 2019-20 were served at the branch office of Adarsh Credit Co-Operative Society Limited, located at Adarsh Printer Bhawan, Rajmata Dharamsala, Sirohi 307001, and these The premises were rented and not under control or supervision of liquidator. it is also pointed out that premise was closed following the arrest of Rahul Modi, the former Managing Director & CEO of Adarsh Credit Co-Operative Society Limited. due to nanpayment of rent by Adarsh Credit Co-Operative Society Limited since March 2019, due to Hquidity issues. It is noted that the registered office of Adarsh Credit Co-Operative Society Limited was shifted to Ahmedabad at Second Floor, 14 Vidya Vihar Colony. Ooposite Hotel Fortune Landmark, Usmanpura, Anmedabad-380013, Guiarat on 16th September 2015 and that liquidator did not have access to the departmental portal as he has no credentials of the portal updated and so as to gain access to the Income Tax Portal.
7. Thus, the official liquidator of the appellant assessee society did not know about the assessment order passed so as to enable him to file appeal before the CIT(A) who has dismissed the appeal of the assessee only on account of a delay in filing of appeal without considering the fact demonstrating the sufficient cause for the delay duly supported with documentary evidence filed before him with the request letter for sald delay along with FORM-35.
We an di iTA Alo. 5 to d2ffodh/2024 Assessment Year 2032-13 to 2019-2G
8. Without prejudice to the above, the Ld. AO passed the assessment order on 30.12.2019 and in the month of March 2020, COVID-19 broke out with lockdown in succession. Resultantly, the net delay in filing the appeal before the Ld. CITA) was to be counted to 280 days only, and considering the aforesaid reasons the appellant was prevented by sufficient cause for the delay in fling the appeal before the CIT(A}) which the ld. CIT(A} ought to have condoned and decided the appeal on merits of the case.
3. Considering the factual matrix and judicial precedent, we consider it appropriate to condone the net delay of only 280 days in the case of the assessee society in respect to assessment year 2012-13. Accordingly, the appeal of the assessee is admitted and restored to the fle of the Ld. CIT{A) to be adjudicated de nove on merits of the case after affording adequate opportunity of being heard. The appellant undertakes that due compliance will be made during the appellate proceedings.
10. The facts and issue in (TA No. 6 to 12/lodh/2024 are identical to the facts and issue discussed in [TA No. 5/Jodh/2024 except the variation in days of delay rather less in number in filme appeal before the CIT (A}. Therefore, our observation and findings given in the appeal in ITA No. S/lodh/2024 shall apply to the other appeals in ITA No. 6 to i2/iedh/2024, in mutatis mutandis, ordered seis"
Q accordingly.
fees fad ITA Na. 5 te 124Jodh/2024 Assessment Year 2012-13 to 2019-20 in the result, these appeals filed by the assessee are allowed for statistical purposes.
Q..../2025 under Rules 34(4) of Income Tax Order pronounced on. JON./..
Appellate Tribunal Ruled.
%, Pillereses.
Soy aN we (OR. MITHA LAL MEENA} ACCOUNTANT MEMBER Copies to:
(4} The appellant.
(2) The respondent. (3) CIT (4) CITA} (5) Departmental Representative (6) Guard File By Oder Assistant Registrar, income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur.