Illiterate person not aware that certain amount received under VRS was exempt: ITAT condones delay of 887 days [Read Order]

The Income Tax Appellate Tribunal (ITAT), Chandigarh condoned delay of approximately 887 days as the case was of an illiterate person not aware that certain amount received under VRS was exempt. The appeal has been preferred by the assessee against the order passed u/s 250 of the Income Tax Act, 1961 by the National Faceless Appeal Centre, Delhi [NFAC] for assessment year 2017-18.

The assessee, Deepak Budhani was an employee of M/s HMT Ltd. (Tractor Division), and he had received certain payments under the Voluntary Retirement Scheme (VRS) on the closure of the Tractor Division. The original return of income declared taxable income of Rs. 50,22,69 and the return were processed u/s 143(1) of Income Tax Act the Act. Subsequently, the assessee came to know that certain amounts received under the VRS were exempt in terms of provisions of section 10(10B) of Income tax the Act.

Accordingly, the assessee filed an appeal again the intimation passed u/s 143(1) of the Income Tax Act and submitted before the First Appellate Authority that the assessee was an illiterate person not aware of the fact that the amount received under VRS was exempt. The appeal before the NFAC was delayed by 2 years 5 months and 17 days. The NFAC observed that the assessee could not demonstrate any sufficient cause for the delay in filing the appeal and proceeded to dismiss the assessee’s appeal in limine. Against this in limine dismissal by the NFAC, the assessee has approached the Tribunal.

A Single Bench consisting of Sudhanshu Srivastava, Judicial Member held that “I deem it expedient that in the interest of substantial justice, the delay be condoned. I, accordingly, direct the NFAC to condone the delay of 2 years, 5 months and 17 days and adjudicate on assessee’s appeal on merits in accordance with law preferably within a period of one year from the date of receipt of this order after giving due opportunity to the assessee to present his case.”

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