Delay of Filing Appeal can be Condoned when there is sufficient cause for not filing appeal within period of limitation: ITAT condones delay of 438 days [Read Order]

The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) held that the delay of filing an appeal can be condoned when there was any sufficient and reasonable cause on the part of the assessee for not filing the appeal within the period of limitation. 

Channabasaveshwara, the appellant assessee was a Trust and was running an educational Institute and order had been passed Under section 200A of the Income Tax Act, while processing the TDS returns, by levying fees Under section 234E of the Income Tax Act and raising a demand. 

The assessee appealed against the order passed by the Commissioner of Income Tax (Appeals) in respect of the levy of interest under section 234E of the Income Tax Act for the belated filing of TDS returns. 

Narendra Sharma, the counsel for the assessee contended that on account of the disruption of normal business during the pandemic, the appellate order served online, was not brought to the attention of the management because the offices of the assessee were closed for a long time and the staff were also working from home. 

Also submitted that during the relevant period, the Supreme Court had extended the period of limitation upto 29.05.2022, and therefore the delay in filing the present appeals had to be computed from 29.05.2022 and here the delay was 438 days and prated to condone the delay of 438 days in filing the present appeal against the orders of the Commissioner passed under section 250 of the Income Tax Act and hear the same on merits for the advancement of substantial cause of justice. 

Parithivel, the counsel for the department contended that condonation of delay vehemently could not bring out anything on record to establish any malafide on behalf of the assessee in causing such delay to file the present appeals before this Tribunal. 

The Bench observed that in the case of CIT V. West Bengal Infrastructure Development Finance Corp, the Supreme Court held that the delay should be condoned and matters to be heard on merits when the stakes involved are high. 

The two-member bench comprising Beena Pillai (Judicial) and Laxmi Prasad Sahu (Accountant) held that if the application of the assessee for condoning the delay is rejected, it would amount to legalizing injustice on technical grounds, when the Tribunal was capable of removing injustice and to do justice. Therefore, the delay of 438 days deserved to be condoned. 

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