The Hyderabad bench of Income Tax Appellate Tribunal ( ITAT ) recently held that a huge delay of 998 days in filing an appeal could not be condoned for vague reasons.
Assessee SRK Infracon (India) Private Limited is a company who filed its e-return of income of Rs.15,54,300/- The case was taken up for scrutiny.. Subsequently, notice under section 142(1) of the Income Tax Act 1961 was issued from time to time calling for various details. After verifying all the material furnished by the assessee, the Assessing Officer completed the assessment of the assessee.
Thereafter the Principal commissioner of income tax on verifying the records found that the assessment order passed by the assessing officer was erroneous and prejudicial to the interest of the revenue as per provisions of section 263 of the Income Tax Act 1961.Against this order assesee filed appeal before ITAT.
Mohd Afzal counsel for the assessee submitted that “assessee’s activity ceased to exist after April 2018 and the administrative staffs was reduced to minimum as there was no day to day management of the company Therefore, the order sent by email was not noticed by the staff or management. Subsequently, the notices sent by the Assessing Officer, inconsequential proceedings also not noticed, due to these reasons the delay occurred for filing appeal.”
Jeevan Lal Lavidiya counsel for the revenue contented that the assessee was not prevented for any reasonable cause for filing the appeal before the Tribunal and that the reasons given by the assessee in the condonation application are any devoid of merit.
After considering the contentions of the both parties the division bench of ITAT comprising Rama Kanta Panda, (Accountant Member) and Laliet Kumar (Judicial Member) dismiss the appeal filed by the assessee and observed that reasons given by the assessee, in the petition for condonation of delay of 988 days, seems to be not bona fide.
Further, the assessee’s reasons in the petition did not come under reasonable cause as prescribed under the Income Tax Act 1961, for condonation of delay.
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