CIT(A) Fails to Adjudicate Matter on Merits: ITAT Condones Delay of 2659 Days and Remands for Fresh Adjudication on Deduction u/s 80P [Read Order]

The Income Tax Appellate Tribunal (ITAT), Pune Bench condoned the delay of 2659 days in filing the appeal and remanded the matter to the CIT(A) for fresh adjudication holding that the appellant should not be denied adjudication on merits due to non-deliberate delay.

The appellant, Shirol Panchayat Samiti Karmchari Sahakari Patsanstha Maryadit, filed the return of income for Assessment Year (AY) 2015-16 beyond the due date and the income was processed and made a prima facie adjustment disallowing the deduction under section 80P. The appellant challenged the same before the CIT(A) which was filed with a delay of 2659 days.

The appellant filed an appeal challenging the intimation order passed under section 143(1) where the deduction under section 80P of the Income Tax Act was denied on account of delay in filing the return of income.

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There was no representation made on behalf of the appellant at the Tribunal and Ambarnath Khule, appeared as counsel for the Revenue Department

Manish Borad, Accountant Member observed that the delay was not intentional and was caused due to reasonable circumstances. The Tribunal held that substantial justice must prevail over technical consideration and appellant should not be deprived of adjudication on merits unless the delay is deliberate.

The Tribunal further noted that the CIT(A) had not adjudicated the issue on merits. Accordingly, the Tribunal remanded the matter to the file of the CIT(A) for fresh adjudication in accordance with law after providing reasonable opportunity of hearing to the appellant.

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