Income Tax Dept. fails to File Appeal on time, No Explanation provided for Delay: ITAT dismisses Appeal [Read Order]

The Bangalore bench of the Income Tax Appellate Tribunal ( ITAT ) dismissed the appeal filed by the Income Tax Department due to a failure to meet the filing deadline, with no satisfactory explanation provided for the delay.

Mr. V Sridhar, representing the assessee, argued that the appeal exceeded the time limit by 360 days, and the Department's explanation for the delay was insufficient to warrant condonation.

In contrast, counsel for the department, Mr. V. Parithivel, pointed to the application for condonation of delay dated 04.12.2023, where an explanation was provided in support of the delay. He relied on a judgment by the Apex Court in the matter of Director of Income Tax ( International Taxation ) versus Western Union Financial Services.

The bench noted that upon receiving the contested order, a scrutiny report was prepared and forwarded to the relevant jurisdictional Principal Commissioner of Income Tax for a decision on filing an appeal. Upon authorization from said officer, the appeal was filed through e-filing.

However, the bench observed that the application filed by the revenue did not provide a proper explanation for the delay. It emphasized that it is the responsibility of the officers to thoroughly examine the matter, particularly the explanation provided by the authorities below, to ensure no deliberate oversight or negligence in filing the appeal.

Given the lack of sufficient explanation for the delay, the Coram of Chandra Poojari ( Accountant Member ) and Madhumita Roy ( Judicial Member ) found no merit in condoning the delay in filing the revenue's appeal. Consequently, the application for condonation of delay was dismissed, and the appeal filed by the revenue was consequently dismissed as well.

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