The Delhi Income Tax Appellate Tribunal ( ITAT ) Condoned the delay and restored the Matter to Commissioner of Income Tax (Appeals) [CIT(A)] as sufficient reasons were submitted by AVA Resources Private Limited, the assessee for the delay caused in the filing of appeal. So the CIT(A) has erred in not considering the reason stated by the assessee.
The Current Appeal was filed against the order of Commissioner of Income Tax (Appeals)/ National Faceless Appeal Centre (NFAC) dated 16/07/2024 for the Assessment Year 2019-20 on various grounds of appeal such as the Bias, Arbitrariness and erred in not condoning the delay in filing the appeal despite the assessee having a reasonable cause for late filing.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
The facts of the case are that, an assessment order passed u/s 147 read with Section 144B of the Income Tax Act, 1961 at Rs. 11,20,96,009/- as against returned income of Rs. 76,74,880/-.Aggrieved by such order assessee preferred Writ Petition before the Hon’ble High Court of Delhi. The said Writ Petition has been allowed to withdraw by the Hon’ble High Court of Delhi subject to rights and contention being kept open to be addressed in appropriate proceedings that may be instituted.
After the disposal an Appeal was preferred before the Commissioner of Income Tax (Appeals) with a delay of 35 days in filing the Appeal which was dismissed stating delay in latches. Aggrieved by the order of CIT (A) the present appeal was filed.
Sh. Satish Agarwal, CA Counsel for the Assessee submitted that CIT(A) has committed error in not accepting the delay in filing the Appeal even after there was sufficient cause for the delay caused, thus the order of CIT(A) needs to be set aside, the counsel submitted.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
In contrary, Ms. Amisha S. Gupta CIT(Departmental Representative) , relying on the orders of lower authorities, sought the dismissal of the Appeal of the Assessee.
The Delhi ITAT Bench comprising S. Rifaur Rahman (Accountant Member) and Yogesh Kumar U.S (Judicial Member) observed that from the order of the CIT(A) that there was a delay of 35 days in filing the appeal and the assessee filed an application for condoning the delay contending that the Assessee had challenged the action of the Department before the Hon’ble High Court of Delhi in W.P. No. 7057/24 and the delay was unintentional.
But CIT(A) dismissed the appeal on grounds of delay in latches, but sufficient reason for condoning the delay of 35 days was explained by the assessee. So the court opinionated that CIT(A) should have condoned the delay of 35 days in filing the appeals and should have decided the Appeal on its merits.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
So the bench finally condoned the delay of 35 days in filing the Appeal before the CIT (A) and ordered the restoration of matter to the file of CIT(A) to decide the Appeals of Assessee in accordance with law by providing the reasonable opportunity of being heard.
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