The Pune bench of the Income Tax Appellate Tribunal (ITAT) dismissed an appeal due to an inordinate delay in filing without sufficient cause being shown by the appellant.
The assessee, M/s Bhujbal Construction Company, filed its return of income for the Assessment Year 2013-14, declaring a total income of Rs.630/-. The case was subjected to limited scrutiny, resulting in the disallowance of Rs.20,35,033/- under Section 40(a)(ia) of the Income Tax Act, 1961, due to the failure to deduct tax at source on interest expenditure. Consequently, an assessment order was passed under Section 143(3) on 22.03.2016.
Aggrieved by the assessment order, the assessee filed an appeal before the Commissioner of Income Tax Appeals-2, Gurugram (CIT(A)), which was dismissed as barred by limitation. The appeal was filed 2086 days after the statutory period prescribed under Section 249(2) of the Act.
The revenue, represented by Umesh Phade, contended that the delay of 2086 days was inordinate and without sufficient reason. The appeal was neither supported by an application nor an affidavit explaining the delay. Therefore, the CIT(A) rightly dismissed it in-limine.
The tribunal emphasised that the burden is on the party seeking condonation to provide a plausible explanation for the delay. The bench referred to several judicial precedents, including Basawaraj & Anr Vs Spl Land Acquisition Officer and Esha Bhattacharjee Vs Managing Committee of Raghunathpur Academy and Ors, to underline the principles governing delay condonation.
The ITAT bench, comprising G. D. Padmahshali (Accountant Member) and Vinay Bhamore (Judicial Member), noted that even after excluding the COVID-19 relaxation period, the delay remained substantial and unexplained. The assessee failed to demonstrate any sufficient cause for the delay and did not submit any affidavit or corroborative evidence. The tribunal highlighted that the acceptability of the explanation is the primary criterion, and the assessee’s lack of action for over five years indicated negligence.
The tribunal upheld the decision of the CIT(A), finding no merit in condoning the inordinate delay. The appeal was dismissed on grounds of limitation.
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