Appeal Delayed due to Medical Grounds and Lack of Proper Legal Advise: ITAT condones Delay of 4 Years [Read Order]

The Income Tax Appellate Tribunal (ITAT), Kolkata bench has condoned a delay of 1535 days (approximately 4 years) in filing the appeal since the assessee has reasonable ground for such delay due to health issues and lack of proper legal advise.

The assessee challenged an addition made under section 68 of the Act at Rs.2,04,80,000/- and disallowance u/s 14A of the Act at Rs.99,615/- after 1535 days from the date of receipt of first appellate order.

The delay, according to the assessee, was due to three reasons. Firstly, Sri Naresh Kumar Chhaparia, Director of M/s Orbit Delmark Pvt. Ltd. was suffering from lungs infection and diabetic and other oldage ailments, secondly the assessee was not advised properly by the legal consultant who has claimed to have forgotten about the said order and has not taken further process and thirdly, on account of lockdown in the State due to outbreak of Covid-19. 

Condoning the delay, the Tribunal bench comprising Shri Rajpal Yadav, Vice-President and Shri Manish Borad, Accountant Member has observed that “We, therefore, in view of the reasons stated in the condonation application and also the extension of limitation period by Hon’ble Supreme Court in Suo Moto Writ Petition (Civil) No.3 of 2020 dated 8th March, 2021, condone the delay in filing this appeal and admit the same for adjudication.”

Remitting the matter before the adjudicating authority, the Tribunal held that “We, therefore under the given facts and circumstances of the case, in the larger interest of justice and being fair to both the parties, are of the considered view that all the issues raised before us, in the instant appeal needs to be restored to the file of the ld. CIT(A) for adjudicating the issues and pass a speaking order on grounds raised before us, including the issue of addition u/s 68 of the Act and disallowance u/s 14A of the Act. Needless to mention that the assessee should be provided a reasonable and proper opportunity of being heard and to place relevant material on record in support of the grounds raised by it.”

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.

Orbit Dealmark (P) Ltd. Vs ITO, Ward-6(3), Kolkata , 2022 TAXSCAN (ITAT) 405 , I.T.A. No.513/Kol/2020 , April 22, 2022