Failure to Consider Assessee's Delay Condonation Request u/s 249(3): ITAT Remands Case to CIT(A) [Read Order]

The Mumbai bench of the Income Tax Appellate Tribunal set aside the order of the Commissioner of Income Tax(Appeals) CIT(A), National Faceless Appeal Centre (NFAC) after it erroneously dismissed the appeal of the assessee for delay in filing, despite the assessee having requested for condonation of delay.

In Assessment Year(AY) 2012-13, the assessee Saffron INC, filed an appeal against an assessment order before CIT(A), NFA, and C. However, the appeal was delayed, so the assessee submitted a condonation request and an affidavit detailing the reasons behind the delay. CIT(A) dismissed the appeal, stating that no request for condonation was made.

Aggrieved by CIT(A)’s order, the assessee filed an appeal to ITAT. The authorised representative (AR) argued that CIT(A)’s order was incorrect as it failed to acknowledge the condonation request, as it was mentioned in Form 35, submitted along with the appeal form by the assessee. The departmental representative(DR) stated that the CIT(A)’s decision was justified. However, the DR did not provide any arguments challenging the assessee’s claim that a delay condonation request had been submitted

CLUB YOUR INCOME - Because Who Said Money Can’t Hang Out Together?

After hearing both parties, the ITAT noted that the assessee had submitted a request for condonation of delay, which the CIT(A) had overlooked. The tribunal found that the appeal’s dismissal on technical grounds, without even considering the delay condonation request, was unjustified. The tribunal observed that procedural lapses should not affect the assessee’s right to appeal in matters of justice and fair play. The tribunal held that such oversights could occur in faceless proceedings but held that such procedural errors must be rectified for justice.

The ITAT Bench, consisting of Sandeep Singh Karhail (Judicial Member) and Nerndra Kumar Billaiya (Accountant Member), restored the case to the file of CIT(A), NFAC, and directed it to evaluate the request for condonation of delay properly. If NFAC is satisfied with the reasons for the delay, it must decide the appeal on its merits instead of dismissing it arbitrarily.

CLUB YOUR INCOME - Because Who Said Money Can’t Hang Out Together?

The tribunal also instructed NFAC to give the assessee a fair opportunity to be heard before making further decisions.

To Read the full text of the Order CLICK HERE

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