No Cogent and Satisfactory Explanation u/s 5 of Limitation Act: ITAT Refuses to Condone Delay of 781 Days [Read Order]

The Amritsar Bench of Income Tax Appellate Tribunal (ITAT) has refused to condone a delay of 781 days holding that cogent and satisfactory explanation were not furnished by the assessee as per Section 5 of the Limitation Act, 1963.

The appellant Nitin Sehgal had been given many opportunities of being heard by fixing hearing on 01.09.2022, 17.11.2022, 16.02.2023, 22.03.2023 and 26.04.2023 except Nitin Sehgal, the appellant itself had appeared only once on 16.02.20223 and short adjournment with a request to file written submission. However, on subsequent dates, he neither appeared nor any Authorised Representative did appear on behalf of the appellant.

It was noticed that there was a delay of 781 days in filing the appeal and the assessee had merely stated in its application firstly, that he was not aware of any appeal order passed by the Commissioner of Income Tax (Appeals) and secondly, that earlier due to his illness as he was suffering from 'Depression' and he was also under treatment and lying on sick bed at home, however the facts were not supported either by any medical certificate or affidavit.

S. R. Kaushik who appeared on behalf of the revenue objected to the request of the appellant for condonation of inordinate delay of 781 days in absence of reasonable cause and that merely mentioning illness without support of any affidavit could not per take the reasons or cause which prevented the appellant to file appeal in the prescribed time limit.

The two-member Bench of M. L. Meena, (Accountant Member) and S.H Anikesh Banerjee, (Judicial Member) following the decision of Punjab & Haryana High Court Shakuntla Thukral vs. Commissioner of Income-Tax dismissed the appeal holding that the explanation furnished by the assessee in its application for condonation of delay, as noticed in the earlier part of the order had not satisfied the test of sufficient ground as contemplated under section 5 of the Limitation Act, 1963.

The tribunal Bench further held that, there was No cogent and satisfactory explanation has been furnished by either the appellant or the learned counsel for the appellant assessee even before this Tribunal for inordinately long delay of 781 days in filing the appeal before the Tribunal in spite of being given five opportunities of being heard.

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