Tax Practitioners were Busy with GST Compliance: ITAT condones Delay of 931 Days in filing Appeal [Read Order]

The Income Tax Appellate Tribunal (ITAT), Pune bench has condoned a delay of 931 days in filing appeal by the assessee noting that the delay was due to the fact that the tax practitioners were busy with GST compliance.

Mr. Vasathan Mukundan filed an appeal before CIT(A) with a delay of 931 days. The assessee is subjected to tax audit u/s 44AB of the Income-tax Act, 1961 and have been deducting TDS and filing the returns on quarterly basis without fail. Further, we also note that the assessee received e-mail communication intimating the levy of Rs.18,934/- for late filing of TDS returns.

The assessee contended that its Accounts staff are not aware of taxation laws, but TDS returns were filed on regular basis. The said staff members are only data entry operators having no knowledge of taxation laws. The assessee also contended that tax professionals engaged for filing income tax returns, tax audits and statutory audits prescribed under the Income Tax Act and the Companies Act was busy with their duties and also the compliances relating to GST Act. We note that the assessee did not intentionally file TDS returns belatedly and it was not disputed that the TDS returns were filed regularly without fail likewise, filing of appeal also before CIT(A).

A bench of Shri R.S. Syal, Vice President and Shri S.S. Viswanethra Ravi, Judicial Member observed that it was an inadvertent mistake without any malafide intention.

“The CIT(A) ought to have considered the reasons explained by the assessee and condoned the delay. Upon hearing both the parties before us, we find the assessee could able to make out sufficient cause which really prevented him in filing appeal in time. Therefore, delay of 931 days condoned and we direct the CIT(A) (NFAC), Delhi to decide the issues raised in the first appeal on merits and pass order in accordance with the law by giving sufficient opportunity of hearing to the assessee,” the Tribunal said.

Shri Kiran Sanmane appeared for the assessee.

To Read the full text of the Order CLICK HERE

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