Underway Payments to Union Bank of India: ITAT Condones Delay of 1999 Days in Filing Appeal [Read Order]

In a ruling the  Income Tax Appellate Tribunal Bangalore condoned the delay of 1999 days in filing appeal by the assessee on reasonable grounds.

The assessee was held to be a non performing asset on 27/02/2018 in the enforcement notice issued by Union Bank of India on 13/06/2018.

The assessee, M/s JCR Drillsol during the course of litigation against respondent, Union Bank of India prayed for consideration of condonation of delay, by quoting the decision of Supreme Court in the case of  Collector, Land Acquisition vs. Mst. Katij,.

The department representative ardently opposed the condonation of delay before Commissioner of  Income Tax (Appeals) and submitted that the assessee continues to be a non performing asset and no purpose will be served as the assessee was not in a position to establish its claim. 

The assessee in the process of making payments to Union Bank of India has made a payment of Rs. 2 Crores upfront and has made arrangements for the balance payment of Rs. 17.5 crores in order to get the assets released from Union Bank of India.

The assessee, represented by Hemant Pai, Advocate relied on the cases CIT vs K.S.P, Venkadadri Traders Ltd. v CIT (2001), Mrs Sandhya Rani Sarkar v. Smt Sudha Rani, etc to condone the delay and to prove that there exists no malafide intentions on behalf of assessee relating to filing of appeal.

The respondent was represented by Subramanian S, Advocate.

The single bench of the Income Tax Appellate Tribunal comprising Beena Pillai observed the assessee’s plea condoned the delay in filing appeal and re-emitted the appeals back to CIT(A) to consider the issues raised by assessee based on evidence submitted by him. And both the appeals raised by assessee were partly allowed  for statistical purposes.

To Read the full text of the Order CLICK HERE

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