ITAT condones 719 days delay in filing Income Tax appeal considering ill health of Managing Person [Read Order]
ITAT has condoned a delay of 719 days in filing an appeal and set aside the order passed by the CIT(E) allowing the assessee another opportunity to present the case for registration under section 12A of the Income Tax Act ,1961
ITAT condones 719 days delay in filing Income Tax appeal
ITAT condones 719 days delay in filing Income Tax appeal
The Delhi bench of Income Tax Appellate Tribunal has set aside an ex parte order passed by the Commissioner of Income Tax (Exemptions) CIT(E) which had rejected the assessee’s application for registration under section 12A of the Income TaxAct,1961.
The CIT(E) had issued multiple notices requesting specific information and various documents necessary for processing the application for registration. However due to the ill health of the managing person the assessee failed to respond to the notices and the application was rejected on the ground of non compliance.
In this case Sankatmochan Jan Kalyan, the assessee filed an appeal against the order of the commissioner of income tax for rejecting the application for registration under section 12A of the Act . The appeal was delayed by 719 days for which a delay condonation petition was filed stating that the managing person’s poor health caused the delay . A request was made for the delay in filing the appeal to be condoned and to be admitted for adjudication.
The Income Tax department objected to the condonation of delay in filing the appeal . After hearing both the parties the tribunal stated that there was sufficient and reasonable cause for the assessee for the delay in filing the appeal and the plea cannot be dismissed. If the explanation was not mala fide or part of a dilatory strategy then Courts were required to give due consideration. The court condoned the delay in filing the appeal and admitted the same for adjudication also referred to the case Collector, Land Acquisition Vs. Mst. Katiji .
The assessee submitted an application for registration to CIT(E) under section 12A of the Act. The assessee was unable to comply with the notices issued by the CIT(E) due to the ill health of the managing person. Consequently the assessee requested for an opportunity to submit the required details but the department objected to the request and supported the order of CIT(E).
After considering both submissions,the tribunal noted that CIT(E) has rejected the application filed by assessee due to non-compliance. However the assessee confirmed that all the necessary evidence can be produced if an opportunity were given.
Therefore the tribunal decided to set aside the order of CIT(E) and remitted the case back to the CIT(E) and the assessee will be given a reasonable opportunity to be heard and to submit all the necessary details .
The two-member bench comprising Anubhav Sharma (Judicial Member) and Manish Agarwal (Accountant Member) held that the assessee will be given a reasonable opportunity to be heard and to submit all the necessary details . The appeal of the assessee was partly allowed.
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