Taxpayer Fails to Prove CA’s Advice to Transfer Case to Advocate and his Negligence to File Timely Appeal: ITAT Denies to Condone Delay of 310 Days [Read Order]

The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) refused to grant condonation for a 310-day delay, citing the taxpayer’s inability to substantiate the Chartered Accountant’s (CA) recommendation to transfer the case to an advocate and the advocate’s subsequent negligence in filing the appeal on time.

The assessee filed petition for condonation of delay along with affidavit stating that his CA, Sharangouda Patil advised to file an appeal against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] before the Income Tax Appellate Tribunal and to engage the services of Mr. Prakash R. Badiger, Advocate, Dharwad. Accordingly, Advocate was handed over the appeal papers to file the appeal.

Ashok A. Kulkarni, representing the assessee referred to various decisions of courts and submitted that in similar circumstances, the courts have held that wrong advice given by a professional constitutes a sufficient and reasonable cause for condonation of delay in filing the appeal. Accordingly, the AR prayed that the delay of 310 days in filing the appeal may be condoned.

On the other hand the counsel for the revenue Mr. Priyadarshi Mishra, submitted that the assessee failed to make out a sufficient and reasonable cause for condonation of delay. There is no merit in the arguments of the assessee that the appeal was not filed in time before the Tribunal on the advice of earlier professionals.

He also submitted that the assessee is well aware of the fact that the appeal is to be filed within 60 days from the date of receipt of the order of the CIT(A) and he has taken a conscious decision not to file appeal before the Tribunal. All of a sudden, the assessee wanted to file an appeal, as such the documents so created are self-serving documents which cannot be relied upon to condone the delay.

The assessee explained the delay of 310 days on the reason that on the advice of his CA, he handed over the appeal papers to Prakash R. Badiger, Advocate, Dharwad who failed to take necessary steps to file appeal before this Tribunal and thereafter he engaged M/s. K.R. Prasad, Advocates, and Bangalore to file appeal.

The assessee also furnished a confirmation letter from Mr. Prakash R. Badiger, Advocate, Bangalore stating that due to eagerness or immaturity, he accepted the income tax brief, but was not able to deliver and there was a delay from his end.

The two member bench of the tribunal comprising Beena Pillai (Judicial member) and Chandra Poojari (Accountant member) found no merit in the application for condonation of delay. Accordingly, ITAT considered the view that the assessee has failed to make out a sufficient and reasonable cause for condonation of delay and rejected the petition for condonation of delay.

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