The Bangalore Bench of Income Tax Appellate Tribunal ( ITAT ) condoned a 50-day delay in filing an appeal and directed the Commissioner of Income Tax (Appeals) [CIT(A)] for fresh adjudication in the interest of substantial justice.
Sri.Deep Desai, appellant-assessee, and the legal heir of Ms.Ila K Desai who passed away on August 17,2021.After inheriting the assets and liabilities,the assessee filed his returns on July 30,2022,reporting an income of Rs.50,18,660. This amount included a significant amount of capital gain from fixed deposits and mutual funds he had inherited.
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The assessee claimed a Tax Deducted at Source (TDS) adjustment for the income he had offered for tax.However,the CPC denied this adjustment since this TDS was deducted under the assessee’s late mothers’s name resulting in a demand of Rs.34,60,060.
After the demand notice was received,the assessee filed a rectification request which was subsequently declined.The assessee appealed to the CIT(A) requesting the condonation of 50 day delay in filing the appeal. The CIT(A) did not find sufficient grounds to condone the delay and dismissed the appeal. The assessee being aggrieved by the decision of the CIT(A) appealed before the tribunal.
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The tribunal heard both the sides of the parties and relied on the decision of the Apex court in the case Collector, Land Acquisition Vs. MST.Katiji & Ors., (167 ITR 471) (SC) which held that “where technical consideration and substantial justice pitted against each other then cause of substantial justice should be given credence”.
The two member bench comprising Prakash Chand Yadav (Judicial Member) and Laxmi Prasad Sahu (Accountant Member) therefore decided to grant the assessee an opportunity to present the case.The CIT(A) was directed to re-evaluate the appeal on its merits and condoned the initial 50 day delay,urging the assessee to cooperate fully with the remand proceedings and any failure from the part of the assessee no liberality will be shown.
As a result the appeal of the assessee was allowed for statistical purposes.
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