Tribunal condones Delay as Chartered Accountant was Busy with ICAI Election, asks to Pay Cost of Rs. 2,500/- [Read Order]

In a recent ruling, the Jaipur bench of the ITAT has condoned the delay in filing an appeal before the Commissioner of Income Tax (Appeals) as the Chartered Accountant of the assessee was busy with the election of Central Council of Institute of Chartered Accountants of India (ICAI). However, the Tribunal remanded the matter to the first appellate authority and directed the assessee to pay a cost of Rs. 2,500/-.

The CIT(Appeals) had dismissed both the appeals ex parte by rejecting the applications for adjournment filed by the ld. Authorized Representative of the assessees. For justifying the cause for delay, he explained that the representative filed applications for an adjournment in advance for the hearing on 20th November 2018 on the ground that he was busy in the election of Central Council of Institute of Chartered Accountants of India scheduled to be held on 8th & 9th December 2018. Therefore, the ld. A/R has contended that a reasonable cause was explained for seeking an adjournment for the hearing on 20th November 2018. However, the ld. CIT (A) instead of considering the request for adjournment, has dismissed the appeals ex parte. He has pleaded that the matters may be set aside to the ld. CIT (A) for deciding the same afresh after giving an opportunity of hearing to the assessees.

After hearing both the sides, the Tribunal observed that the CIT (A) has passed identical orders in both the appeals and dismissed the appeals of the assessees ex parte.

“We find that though the ld. CIT (A) fixed the hearing of the appeals on 8 occasions, out of which on 7 occasions the adjournment applications were filed by the ld. A/R of the assessees. The hearings of both the appeals were fixed simultaneously on the same date and, therefore, identical adjournment applications were filed. The ld. CIT (A) granted adjournments on 6 occasions but refused to grant the adjournment on last occasion i.e. 20.11.2018. We note that though sufficient opportunities were granted by the ld. CIT (A) to the assessees for presenting their cases, however, when the assessee has explained a reasonable cause for not appearing on 20.11.2018 and also filed an application in advance wherein it was stated that the ld. A/R of the assessees was contesting the election of Central Council of ICAI scheduled for 8th & 9th December 2018, then one more opportunity ought to have been granted by the ld. CIT (A). Having considered the facts and circumstances of the case as well as in the interest of justice, we grant one more opportunity to the assessees subject to the cost of Rs. 2500/- each and set aside the matters to the record of the ld. CIT (A) for deciding the same afresh after hearing the assessees. The assessees are also directed not to take any further adjournment before the ld. CIT (A),” the Tribunal said.