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Facts
The assessee, a non-resident, appealed against orders dated 27.08.2024 and 07.01.2025. The NFAC had dismissed the appeals in limine due to a delay of two years and eight months in filing.
Held
The Tribunal found that the delay was abnormal and that the assessee had provided a sufficient explanation supported by an affidavit regarding counsel's inadvertent failure to file the quantum appeal. The delay was condoned.
Key Issues
Whether the delay in filing the appeal before the NFAC should be condoned given the circumstances explained by the assessee.
Sections Cited
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Income Tax Appellate Tribunal, DELHI BENCHES: G : NEW DELHI
Before: SHRI ANUBHAV SHARMA & SHRI MANISH AGARWAL
Assessment Year: 2018-19 Assessment Year : 2018-19 Sudhir Gandhi, Vs ACIT, 44-E/9, Kishan Garh, Circle-61(1), Near Sector-A, Pocket-A, Delhi. Vasant Kunj Pkt.-A, Delhi – 110 070. PAN: AEUPG1902P (Appellant) (Respondent) Assessee by : Shri Suresh K. Gupta, CA Revenue by : Shri Dheeraj Kumar Jaiswal, Sr.DR Date of Hearing : 01.07.2025 Date of Pronouncement : 04.07.2025 ORDER PER ANUBHAV SHARMA, JM:
These appeals are preferred by the assessee against the orders dated 27.08.2024 and 07.01.2025, respectively, of the Ld. Commissioner of Income- tax (Appeals), NFAC, Delhi.
At the time of hearing, it was pointed out by the ld. AR that the appeals of the assessee have been dismissed by the NFAC in limine by declining to condone the delay in filing the appeals. We find that the NFAC has considered the fact that there was an abnormal delay of two years and eight months in appeal arising out of challenge of assessment order. We find that the penalty order appeal was dismissed being consequential.
However, what has been cited before us duly supported by an affidavit is that the assessee is a non-resident settled abroad in Tanzania and Dubai since 01.04.2017. The assessment order was passed on 19.04.2021 and the date of filing the appeal was 18.05.2021 which was extended by the Hon’ble Supreme Court at the time of Covid. The assessee has taken a plea by filing an affidavit that the counsel of the assessee was assigned the task of filing the appeals and he filed the appeal against the penalty order, but, inadvertently, failed to file the appeal against the quantum and the assessee was not aware of the same. When such is the state of affairs, then, the NFAC should have been reasonable and prudent in approach. Thus, we consider it an appropriate case to condone the delay in filing the appeal before the NFAC. The issues on merits as well as on law in both the appeals are restored to the files of the NFAC to be decided afresh in accordance with the law, giving fresh notice of hearing to the assessee. Appeals are allowed for statistical purposes. Order pronounced in the open court on 04 .07.2025. Sd/- Sd/- (MANISH AGARWAL) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 04th July, 2025.