The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) condoned a 64-day delay in filing an appeal citing the illness of the company’s long-serving auditor, who had been handling its tax matters for over 40 years as a valid reason for the delay.
Al-Ameen International Ltd., the assessee, had filed appeals for assessment years 2016-17 and 2017-18. The assessee was unaware of the income tax notices because this kind of matter was always handled by the company’s CA.
Due to non-compliance with the notices, the assessing officer passed the final assessment order. When the assessee learned about the final assessment order, the company filed an appeal before the Commissioner of Income Tax (Appeals), but unfortunately, it was delayed 64 days.
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The assessee’s counsel argued that it had timely uploaded replies to notices and provided valid reasons for the delay, including the illness of its auditor, P.V. Sreedhar, aged 85, who was bedridden. The delay occurred as the company sought and engaged a new auditor to handle its tax matters.
The CIT(A) refused to condone the delay stating that the appeal was not filed within the prescribed time frame. So, the appeals were dismissed on procedural grounds without addressing the merits of the case.
On appeal before the ITAT, the assessee’s counsel argued that the delay was neither deliberate nor intended for any undue advantage. The assessee’s counsel requested the tribunal to consider the circumstances and allow the appeal to be heard on its merits.
The two-member bench, comprising Aby T. Varkey (Judicial Member) and Manoj Kumar Aggarwal (Accountant Member), reviewed the matter and explained the principles of natural justice. The tribunal observed that the right to appeal is a statutory right, which should not be dismissed based on technicalities particularly when the delay was explained and justified.
The tribunal condoned the delay of 64 days and set aside the CIT(A)’s order. The tribunal directed the CIT(A) to re-examine the appeals and decide the grounds on their merits after granting the assessee an opportunity to be heard. The tribunal remanded the matter to the CIT(A) for fresh adjudication and allowed the appeals for statistical purposes.
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