Delay In Filing Income Tax Appeal Due to Auditor's Death: ITAT Condones 338 Days of Educational Institution [Read Order]

The Cochin Bench of the Income Tax Appellate Tribunal (ITAT) condoned a 338-day delay in filing an appeal by The Centre for Management Development, citing the death of the assessee’s auditor as sufficient cause, and remanded the matter to the Commissioner of Income Tax (Appeals) [CIT(A)] for a decision on its merits.

The Centre for Management Development (assessee), an educational institution faced scrutiny for the Assessment Year (AY) 2022-23. The assessee, a self-supporting autonomous institution based in Trivandrum, filed an appeal against the order of the Assessing Officer (AO), but the appeal was delayed by 338 days.

Aggrieved by the AO’s order, the assessee filed an appeal before the CIT(A). The appeal was filed 338 days beyond the prescribed period and the assessee explained that the delay was due to the death of the auditor responsible for managing its tax affairs.

The CIT(A) dismissed the appeal refusing to condone the delay and stating that the reasons provided were insufficient. Aggrieved by the CIT(A)’s order, the assessee filed an appeal to the ITAT.

Stay Updated with the Latest Audit Report Formats & Audit Trials Requirements!, Click Here

The Counsel for the assessee argued that the CIT(A) failed to appreciate the reasons behind the delay in a judicious manner. The Counsel also submitted that the order of the CIT(A) was not justifiable.

The two-member bench, comprising Inturi Rama Rao (Accountant Member) and Prakash Chand Yadav (Judicial Member) observed that the assessee had provided a clear explanation, supported by evidence, that the delay was caused by the auditor’s death, which constituted a sufficient cause for the delay.

The tribunal condoned the 338-day delay. The tribunal set aside the CIT(A)’s order and restored the appeal to the CIT(A) for adjudication on merits, directing that the assessee be given a meaningful opportunity to be heard.

The appeal of the assessee was allowed for statistical purposes.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates