District Magistrate Failed to Collect TCS: ITAT Condones 350-Day Delay Despite Non-Representation of DM's AR [Read Order]

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) condoned a 350-day delay in filing an appeal by the District Magistrate, Badaun, in a case concerning non-compliance with Tax Collected at Source (TCS) provisions under Section 206C(6A) of the Income Tax Act, 1961, despite the absence of any representation by the District Magistrate’s authorized representative during the hearing.

The case arose from an order passed by the ITO (TDS), Moradabad, on 31.03.2017 for the Assessment Year 2010-11, in which a tax liability of Rs. 8,13,688 was imposed on the District Magistrate’s office for failure to collect TCS. The order went unchallenged until an appeal was filed with a long delay of 350 days. The Commissioner of Income Tax (Appeals), Moradabad, dismissed the appeal as time-barred, refusing to condone the delay.

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In its submissions, the District Magistrate’s office explained that the delay occurred due to administrative lapses. The order was initially served at the District Magistrate's main office and was not conveyed to the Mining Officer, who was the responsible officer for TCS compliance. The Mining Officer had been on medical leave due to a disc slip and resumed duty only in March 2017. Following his return, it took time to locate the order, understand pending tax matters, and arrange for legal representation and online appeal filing, which further contributed to the delay.

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Before the ITAT, no one appeared on behalf of the District Magistrate, but the tribunal considered the written submissions and reasons provided for the delay. The revenue counsel did not object to the matter being remanded if the delay was found to be reasonable.

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The two-member bench comprising Shamim Yahya (Accountant Member) and Vimal Kumar (Judicial Member) held that the delay was attributable to genuine administrative and procedural lapses and was not deliberate. The tribunal explained the need for justice and accepted the explanation provided.

The tribunal condoned the delay and remanded the matter to the CIT(A) for fresh adjudication. It directed that the District Magistrate be given a proper opportunity to present their case and that the matter be decided through a speaking order. The appeal was allowed for statistical purposes.

To Read the full text of the Order CLICK HERE

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