The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the decision of the Commissioner of Income Tax (Appeals) [CIT(A)], dismissing an appeal that was delayed by 2086 days. The tribunal noted that the assessee failed to provide any affidavit or evidence to substantiate the reasons for the delay, leading to the dismissal of the appeal.
Assessee, Bhujbal Construction Company, a partnership firm filed its income tax return for the assessment year 2013-14 declaring Rs. 630 as total income. The assessee’s assessment was selected for limited scrutiny under the Computer Assisted Scrutiny Selection (CASS) system where it was found that the assessee failed to tax deduct at source (TDS) on an interest expenditure of ₹20,35,033, leading to a disallowance under section 40(a)(ia) of the Income Tax Act, 1961. The assessing officer framed the assessment under section 143(3) of the Income Tax Act and passed an order.
Aggrieved by the AO order, the assessee filed an appeal before the Commissioner of Income Tax (Appeal). Regrettably, the assessee’s appeal was filed with a delay of 2086 days, resulting in its dismissal.
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Aggrieved by the CIT(A) decision, the assessee filed an appeal before the ITAT, Pune. However, the assessee failed to appear before the tribunal twice and there was no record requesting for adjournment.
The revenue counsel represented by Umesh Phade submitted the assessee’s appeal filed before the CIT(A) with a delay of approximately 2086 days past the expiration of the period within which the appeal could have been filed before the CIT(A). The counsel further submitted that the appeal was neither supported by any application nor an affidavit explaining the sufficient reasons behind such an inordinate delay. The revenue counsel supported the order of CIT(A), which appropriately dismissed the appeal in-limine on the grounds of limitation.
The two-member bench comprising G.D. Padmahshali (Accountant Member) and Vinay Bhamore (Judicial Member) observed the revenue arguments. Without going into the grounds of appeal and merits of the case, the tribunal decided the matter on the note that the appeal filed by the assessee before the CIT(A) with a delay of 2086 days from the expiry of the statutory period prescribed under section 249(2) of the Income Tax Act.
The Tribunal relied on the principles in the Supreme Court case of Esha Bhattacharjee Vs Managing Committee of Raghunathpur Academy and Ors where the issue of sufficiency of reasons in given facts & circumstances was detailed. Even after the COVID-19 relaxation of 2 years excluded, the balance delay in instituting the appeal before CIT(A) continues to be inordinate, substantial & excessive.
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The tribunal further noted that there was no affidavit explaining the cause of the delay and the assessee was found to be casual, non-serious, and non-vigilant in preferring/instituting the appeal before CIT(A) against the assessment order. Thus, the order passed by the CIT(A) dismissing the appeal in-limine was upheld. The appeal was dismissed.
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