ITAT Condones 148-Day Delay, Remands Case to CIT(A) Due to Assessee's Medical Grounds and Legal Oversight [Read Order]

The Income Tax Appellate Tribunal (ITAT) Kolkata Bench has condoned a 148-day delay in filing an appeal, accepting medical reasons and legal oversight as valid grounds. The tribunal directed the case to be reconsidered by the Commissioner of Income Tax (Appeals), giving appellant another opportunity to present evidence.

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Sandeep Prasad, a resident of Panagarh, West Bengal, had filed an appeal challenging an addition of ₹31.16 lakh made by Income Tax authorities for alleged unverified cash deposits in his bank account. The delay occurred because Prasad was suffering from a brain-related illness during the appeal filing period, as supported by medical certificates. Additionally, his legal consultant failed to file the appeal on time.

The case began when the Income Tax Department issued a notice to Prasad for the assessment year 2010-11, questioning cash deposits in his joint bank account. The Assessing Officer passed an ex-parte order, adding the entire deposit as unexplained income. The Appellant appealed before the CIT(A), but due to non-appearance, his appeal was dismissed.

Before the ITAT, Prasad’s representative argued that the initial delay in filing the first appeal was due to health issues and that the Assessing Officer had passed the order without giving a proper hearing. The tribunal noted that the assessee had genuine reasons for the delay and that justice required giving him a fair opportunity to present his case.

The ITAT Bench comprising Pradip Kumar Choubey (Judicial Member) and Sanjay Awasthi (Accountant Member), presiding over the case, accepted the medical grounds and legal oversight as sufficient cause for condoning the delay. They directed the CIT(A) to reconsider the case on merits, allowing Prasad to submit fresh evidence if needed.

In Conclusion, the appeal was allowed for statistical purposes.

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