Delay of 3 Years 5 Months for Filing Appeal: ITAT Condones Delay Citing Covid-19 and Principle of Substantial Justice [Read Order]
Noting that a significant part of the 3 years and 5 months delay overlapped with the COVID-19 pandemic period and invoking the principle of substantial justice, the tribunal condoned the delay.
The Agra Bench of the Income Tax Appellate Tribunal (ITAT) condoned the delay of 3 years and 5 months in filing the first appeal and restored the matter to the Commissioner of Income-tax (Appeals) [CIT(A)] for fresh adjudication on merit.
Maya Shikshan Pashishan, (assessee) filed Income Tax Return (ITR) declaring a net income of Rs. 7,01,300, based on gross receipts of Rs. 98,58,650 and gross expenditure of Rs. 91,57,348.
The return was processed by the CPC, which disallowed the entire expenses amounting to Rs. 91,57,348 and imposed tax on the entire gross receipts. Aggrieved by the order, the assessee preferred an appeal to the CIT(A).
The CIT(A) dismissed the appeal as beyond the period of limitation provided under Section 249(2) of the Act. The appeal was filed in a delay of about 3 years and 5 months. Aggrieved by the CIT(A)’s order, the assessee filed an appeal before the ITAT.
The Counsel for assessee argued that the CIT(A) erred in not issuing a notice before deciding the delay, which violated the principles of natural justice. The counsel also submitted that the case was covered by a prior order of the same bench in the assessee’s own case for AY 2019-20.
The two-member bench, comprising S. Rifaur Rahman (Accountant Member) and Sunil Kumar Singh (Judicial Member), noted that the assessee's first appeal was dismissed as barred by limitation.
The tribunal observed that the referred case was decided on merit, indicating that the first appeal in the referred case was filed within the 30-day period of limitation. The Tribunal observed that most of the duration of the delay in filing the appeal before the CIT(A) overlapped with the period of the global pandemic COVID-19.
The tribunal observed that out of the three years and five months delay, about two years of delay stood excluded due to the Supreme Court's order related to the COVID-19 period. It invoked the principle of substantial justice, noting that it cannot be denied on technical aberrations for the remaining delay of about one year and five months.
The Tribunal condoned the delay in filing the first appeal in the interest of justice and set aside the order. It restored the matter back to the file of the CIT(A) for fresh adjudication on merits. The appeal of the assessee was allowed for statistical purposes.
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