25-Day Appeal Delay Due to Election Code of Conduct and Staff Ill Health: ITAT Restores Matter to CIT (A) [Read Order]

The Bangalore bench of the Income Tax Appellate Tribunal ( ITAT ) has restored the matter to the Commissioner of Income Tax (Appeals) following a 25-day delay in the appeal, which was attributed to the condonation application and affidavit citing staff illness and the election code of conduct.

The Additional/Joint Commissioner of Income Tax (Appeals) dismissed the assessee's appeal in limine for failing to condone a delay of 25 days in filing the appeal. The delay was attributed to the election code of conduct and staff ill health. The condonation application and affidavit submitted to the First Appellate Authority ( FAA ) were included in the record. The FAA did not accept the delay as reasonable and consequently dismissed the appeal.

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The assessee has challenged the Addl/JCIT (A) decision by filing an appeal with the Tribunal. Mr. Shankar Gowda, representing the assessee, highlighted that the Bangalore Bench of the Tribunal had previously condoned a delay of 45 days under similar circumstances in the case of Karnataka Power Corporation Ltd., Employees Credit Co-op. Society Ltd. Vs. ITO Order dated 19.06.2024), and remanded the matter to the CIT(A) for merit consideration.

The Tribunal reviewed the submissions and the case file. It was noted that the FAA had not condoned the 25-day delay and dismissed the appeal in limine. The reasons provided in the condonation application and affidavit mentioned staff illness and election code of conduct as causes of the delay. In contrast, the Bangalore Bench had previously relied on the Supreme Court’s decision in Collector, Land Acquisition Vs. MST Katiji to condone a 45-day delay and remand the matter for merit-based evaluation.

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The Bangalore Bench of the Tribunal in Karnataka Power Corporation Ltd., Employees Credit Co-op. Society Ltd. found the reasons for delay disruptions due to the election code of conduct and subsequent Board meetings to be sufficient for condonation. The Tribunal thus decided to allow the delay and remand the case for a merit review.

In alignment with the precedent set by the Bangalore Bench, the Tribunal, under the bench led by George George K, condoned the 25-day delay in the current case and directed the CIT (A) to reconsider the appeal on its merits. The appeal is thus allowed for statistical purposes.

The appeal filed by the assessee was allowed, and the matter was restored to the CIT (A) for consideration of the issues on merit.

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