The Kolkata Bench of Income Tax Appellate Tribunal(ITAT) condoned the delay in filing an appeal by the assessee based on bona fide reasons outlined in an affidavit including financial difficulties during the COVID-19 pandemic, absence of legal counsel, and issues with communication regarding the assessment order and remanded the matter to Commissioner of Income Tax(Appeals)[CIT(A)] for fresh hearing.
M/s Manali Properties & Finance Pvt. Ltd.,appellant-assessee, was involved in the business of trading, dealing, and investing in shares and securities. The case was selected for scrutiny by the AO, who added Rs. 6,14,83,565/- to the assessee’s income as income from other sources.
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The assessee filed an appeal before the CIT(A), which was dismissed due to delays of 561 days and 266 days in submission. The CIT(A) stated that the assessee failed to show sufficient cause for the delay in both appeals.The assessee appealed before the tribunal aggrieved by the order of CIT(A).
The assessee’s counsel appeared and focused on requesting an opportunity for the assessee to present their case before the CIT(A), explaining that the delay was genuine and not intentional. An affidavit was also submitted to justify the delay.
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After reviewing the order of the CIT(A), it seemed that the assessee’s appeal was dismissed because of the delay, as the CIT(A) did not find a reasonable cause for it.
The two member bench comprising Pradip Kumar Choubey(Judicial Member) and Rajesh Kumar(Accountant Member) also went through the affidavit submitted by the assessee, which explained that the delay in filing the appeal was due to the assessment order being received only on 10.11.2022, despite the order being passed on 24.05.2021. The assessee cited financial difficulties during the peak COVID period and the absence of legal counsel at the time. The company also clarified that the appeal was filed within 60 days of receiving the order, based on the correct date of service.
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The affidavit further pointed out that the assessment order was mistakenly sent to the wrong email address, and the company referred to the Supreme Court’s ruling on the extension of limitation due to the COVID period. The assessee requested the delay to be condoned and the appeal to be heard on merits.
The appellate tribunal reviewed the affidavit filed by the assessee and the relevant judgments. In Shakuntala Devi Jain v. Kuntal Kumari and N. Balakrishnan v. M. Krishnamurthy, the Supreme Court emphasized that the words ‘sufficient cause’ should be liberally construed to advance substantial justice. The tribunal noted that delay in filing should not be presumed as deliberate and that the primary goal is to ensure access to justice.
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Given the assessee’s explanation, the tribunal decided to grant an opportunity to present the case before the CIT(A). The appeal was restored, the delay was condoned, and the order of the CIT(A) was set aside for a fresh hearing.
In short,the appeal filed by the assessee was allowed for statistical purposes.
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