Agriculturist not having Legal Awareness fails to file Appeal before CIT(A): ITAT Condones 725 days Delay [Read Order]

In a recent ruling, the Income Tax Appellate Tribunal ( ITAT ) of Ahmedabad condoned a delay of 725 days in the case of an agriculturist from Banaskantha, Gujarat, who failed to file an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)] due to a lack of legal awareness.

The assessee/ appellant, Amarabhai Ramjibhai Patel initially sought to challenge an assessment order that estimated his net profit at ₹8,00,000, a figure considerably higher than the ₹6,20,605 he had declared based on his audited accounts for the 2017-18 financial year. However, being unfamiliar with legal procedures, the assessee missed the deadline for filing the appeal, prompting the CIT(A) to dismiss his case.

Represented by Shri Mehul Thakkar, the assessee argued before the ITAT that his inability to file the appeal on time was not deliberate but due to his limited understanding of the law. Thakkar emphasized that Patel, being an agriculturist, was unaware of the intricacies involved in both the assessment and appellate procedures. The delay, therefore, was a result of his ignorance of the legal requirements rather than an intentional neglect of his obligations.

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During the hearing, which took place on August 12, 2024, the ITAT, presided over by Judicial Member Ms. Suchitra Kamble, reviewed the circumstances leading to the delay. The assessee’s legal counsel contended that the appeal should not have been dismissed purely on procedural grounds, especially when the taxpayer had acted in good faith and sought to correct the oversight as soon as it came to his attention. It was further submitted additional evidence that the assessee wished to present, urging the tribunal to admit these materials and allow the case to be heard on its merits.

The tribunal, after considering the submissions, accepted the explanation for the delayed filing. Recognizing assessee’s position as a farmer with little exposure to legal processes, the ITAT held that the delay was excusable and should not bar him from pursuing justice. In the interest of fairness, the tribunal decided to condone the delay of 725 days and remanded the case back to the CIT(A) for a fresh hearing.

Importantly, the ITAT instructed the CIT(A) to consider the additional evidence submitted by Patel during this new round of proceedings. The tribunal also stressed that the assessee must be given a full and fair opportunity to present his case, adhering to the principles of natural justice. At the same time, the ITAT warned the assessee to cooperate fully in future proceedings, indicating that any failure to do so might result in the CIT(A) making a decision based solely on the evidence already submitted to the tribunal.

To Read the full text of the Order CLICK HERE

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