The Income Tax Commissioner (Appeals) has taken technical view in dismissing the application to condone the delay and in consequently dismissing the appeal. The Kerala High Court stayed the income tax recovery proceedings during the pendency of the appeal, citing sufficient reasons recorded in the delay condonation application.
The petitioner Society was an assessee under the Income Tax Act, 1961 (for short, ‘the Act’). Against order of assessment passed by the Income Tax Officer under Section 143(3) of the Income Tax Act, the petitioner preferred copy of appeal before the Income Tax Commissioner (Appeals) along with application for condonation of delay. The Income Tax Commissioner (Appeals) dismissed application for condonation of delay on the ground that the petitioner has not shown sufficient cause for condoning the delay
The Income Tax Appellate Tribunal found that no case has been made out by the assessee for existence of sufficient cause in the application for condonation of substantial period of delay of 18 days in filing the appeal. ITAT also found that it was also a settled position of law that the delay is unexcusable unless sufficient cause is shown. Further find that proper explanation and reasons for delay have not been given. Therefore, in the absence of reasonable cause and also in the absence of proper explanation and reasons, without being supported by proper evidence, the appeal filed by the assessee late by 18 days, the delay is not condonable. Hence, the appeal of the assessee was not admitted and the same was dismissed in limine.”
Thus, the single member bench of Kerala High Court Comprising Murali Purushothaman found that the petitioner has stated sufficient reason in the application for condonation of delay.
The Income Tax Commissioner (Appeals) has taken technical view in dismissing the application to condone the delay and in consequently dismissing the appeal. The Income Tax Commissioner (Appeals) went wrong in dismissing the appeal at the threshold on technical grounds. Accordingly, set aside condonation of delay order and direct the Income Tax Commissioner (Appeals). There shall not be any recovery steps against the petitioner pursuant to assessment order. The writ petition was disposed of with the above direction.
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