ITAT Condones Delay of 107 Days in Filing Appeal Due to Assessee's Health Issues and Covid-19 Pandemic [Read Order]

In a significant ruling, the Income Tax Appellate Tribunal (ITAT), Rajkot Bench, has condoned a delay of 107 days in filing an appeal by an assessee, Divyesh Devabhai Pampania, citing health complications and the impact of the Covid-19 pandemic. The tribunal restored the matter to the Assessing Officer (AO) for fresh adjudication, emphasizing the importance of natural justice and fair play in tax proceedings.

The case pertains to the assessment year 2015-16, where the assessee had filed appeals against the orders of the Commissioner of Income Tax (Appeals) CIT(A), National Faceless Appeal Centre (NFAC), Delhi. The CIT(A) had dismissed the appeals due to a delay of 184 days in filing, refusing to condone the delay despite the assessee’s explanations.

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Assessee’s counsel Kalpesh Doshi argued that a significant portion of the delay was covered by the Supreme Court’s suo moto order in response to the Covid-19 pandemic, which condoned delays from 15th March 2020 to 28th February 2022, with an additional 90-day grace period. After excluding this period, the effective delay was only 107 days.

Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here

21 months Delay in Filing Income Tax Appeal due to Covid Pandemic: ITAT condones Delay citing SC Ruling

The assessee further explained that the remaining delay was due to severe health issues.During the assessment proceedings, the assessee was diagnosed with Covid-19, leading to isolation and a halt in daily activities. Post-recovery, the assessee suffered from insomnia, weakness, and loss of appetite, requiring prolonged medical treatment. These health challenges, coupled with the pandemic’s widespread impact, prevented the timely filing of the appeal.

Additionally, the assessee highlighted that the notice from the AO was served to an old consultant who failed to inform the assessee about the proceedings. The assessee only became aware of the CIT(A)’s order upon receiving a demand notice.

The Revenue, represented by Senior Departmental Representative Abhimanyu Singh Yadav, opposed condoning the delay, arguing that the assessee had not provided sufficient evidence to justify the 107-day delay.

Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here

After hearing both sides, Dr. Arjun Lal Saini, Accountant Member, found the assessee’s explanations convincing. The tribunal noted that the delay was neither intentional nor deliberate but was caused by circumstances beyond the assessee’s control. Emphasizing the principles of natural justice, the ITAT condoned the delay and restored the matter to the AO for fresh adjudication.

The tribunal also directed the assessee to cooperate fully with the AO, submit all necessary documents, and avoid unnecessary adjournments. The penalty appeal, linked to the quantum appeal, was also restored for fresh consideration.

This ruling underscores the judiciary’s sensitivity to the challenges posed by the Covid-19 pandemic and health-related hardships, ensuring that taxpayers are granted a fair opportunity to present their cases. The decision serves as a reminder of the importance of adhering to procedural fairness in tax disputes.

To Read the full text of the Order CLICK HERE

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Divyesh Devabhai Pampania vs The I.T.O , 2025 TAXSCAN (ITAT) 317 , ITA No. 408/RJT/2024 , 30 December 2024 , Shri Kalpesh Doshi , Shri Abhimanyu Singh Yadav