Accountant’s Negligence: Uneducated Taxpayer wins Second Chance, ITAT condones 87-Day Delay [Read Order]

The Nagpur Bench of the Income Tax Appellate Tribunal (ITAT) has condoned a delay of 87 days in filing an appeal, granting relief to a taxpayer who claimed ignorance of proceedings due to negligence by his part-time accountant.

The appellant, Amol Babanrav Kolakar, had approached the Tribunal challenging an ex-parte order passed by the Commissioner of Income Tax(Appeals), National Faceless Appeal Centre, Delhi, in relation to Assessment Year 2017–18. His appeal before the CIT(A) had been dismissed without adjudication on merits, as it was filed late by 59 days without an accompanying condonation application.

In his plea before the ITAT, Kolakar submitted that he was an uneducated person engaged in a mobile recharge business and had fully relied on a part-time accountant to handle his income tax matters. He stated that all tax-related communication was routed through the accountant, who failed to inform him about the notices or orders issued by the department. The lapse only came to light when Kolakar received a recovery notice from the Assessing Officer and subsequently learned of the adverse orders passed against him.

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He further claimed that despite approaching the accountant for records and login credentials, he was not provided with the necessary information. Kolakar then retrieved the documents from the ITO’s office and approached a new counsel, who advised him to immediately file an appeal along with a delay condonation request.

The Tribunal, after considering the submissions and sworn affidavit explaining the cause for delay, held that the assessee was prevented from filing the appeal within time due to reasonable cause. The delay, the Bench observed, was not deliberate but arose from his lack of awareness and the conduct of his accountant.

Single Member Bench comprising V Durga Rao (Judicial Member), noted that the taxpayer had shown a consistent pattern of non-compliance—failing to respond to notices issued on four separate occasions during the appellate proceedings and filing the first appeal itself with a 59-day delay. It termed his approach as “lackadaisical” (carelessly lazy) but chose to give him another opportunity in the interest of natural justice.

The ex-parte order passed by the CIT(A) was set aside, and the matter remanded back for fresh adjudication. The assessee was directed to submit a properly supported condonation application before the CIT(A), who shall exercise discretion to decide it on merits before proceeding with the appeal.

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