Delay in Filing Appeal Due to CA's Death: ITAT Condones 872 Days Delay, Remands Matter [Read Order]

The Rajkot Bench of the Income Tax Appellate Tribunal (ITAT) has condoned a delay of 872 days in filing an appeal which was due to the death of the assessee’s chartered accountant and notices issued by a non-jurisdictional Assessing Officer (AO) and remanded the matter to the AO for fresh adjudication.

Trikambhai Karshanbhai Padasala (assessee), an individual, filed his income tax return for the Assessment Year (AY) 2017-18 on 27.03.2018, declaring a total income of Rs. 3,55,130. The case was selected for limited scrutiny due to cash deposits during the demonetization period.

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The AO issued notices through the ITBA portal, but the assessee’s tax consultant failed to comply or inform the assessee, allegedly due to notices being issued by a non-jurisdictional AO. The AO passed an ex-parte order and added Rs. 11,01,500 to the assessee’s income.

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Aggrieved by the AO’s order, the assessee appealed to the Commissioner of Income Tax (Appeals) [CIT(A)]. The assessee argued that a delay of 872 days beyond the prescribed period, citing the death of his chartered accountant on 02.06.2023 and lack of awareness about the proceedings.

The CIT(A) dismissed the appeal on 28.05.2024, stating insufficient cause for condonation of delay and lack of interest in pursuing the appeal. The CIT(A)’s order, served via the ITBA portal to the deceased consultant’s email, further delayed the assessee’s awareness until a demand notice was received on 27.01.2025.

Aggrieved by the CIT(A)’s order, the assessee appealed to the ITAT. The assessee submitted an affidavit and the death certificate of the chartered accountant, explaining that the delay was due to the consultant’s death and the non-jurisdictional AO’s notices, which the consultant did not act upon.

The single-member bench, comprising Dr. Arjun Lal Saini (Accountant Member), relied on the Supreme Court’s ruling in Collector, Land Acquisition vs Mst. Katiji and others, which prioritizes substantial justice over technicalities.

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The tribunal observed that the assessee’s unawareness was due to the chartered accountant’s death and the non-jurisdictional AO’s notices, which constituted sufficient cause. The tribunal condoned the 872-day delay for filing the appeal.

The tribunal set aside the CIT(A)’s order and remanded the matter to the AO for de novo adjudication and directed the assessee to submit all relevant documents promptly and avoid future delays. The appeal of the assessee was allowed for statistical purposes.

To Read the full text of the Order CLICK HERE

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