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Income Tax Appellate Tribunal, HYDERABAD BENCHES “B” : HYDERABAD
Before: SMT. P. MADHAVI DEVI & SHRI A. MOHAN ALANKAMONY
This is assessee’s appeal for the AY.2012-13, directed against the order of the Commissioner of Income Tax (Appeals)-7, Hyderabad, dated 19-06-2019, dismissing the assessee’s appeal without condoning the delay of 376 days in filing of the appeal before him.
The assessee has raised the following Grounds of Appeal:
“1. The order of the learned CIT(A) dismissing the appeal in limine is erroneous both on facts and in law. 2. The learned CIT(A) erred in dismissing the appeal without admitting the same on the reason that the reasons mentioned for the delay in filing the appeal are not accepted. The learned CIT(A) failed to appreciate that the assessee was prevented by sufficient cause for not filing the appeal within time of limitation.
3. The Ld.CIT(A) ought to have appreciated that when there is a strong case on merits, delay cannot be a reason to dismiss the appeal”.
At the outset, Ld.Counsel for the assessee reiterated the submissions made by the assessee before the CIT(A), explaining the reasons for the delay. For the sake of ready reference, relevant paragraph is reproduced here under:
“4. In this case, there was a delay of 376 days in filing an appeal. In this regard, the appellant filed the following petition for condonation of delay:
“I.PENDYALA VENKAT REDDY, son of Sri Late PENDYALA NARAYAN REDDY, aged about 60 years, R/o. Flat No.102, Sri Laxmi Narsimha, Apartments, Barkatpura, Hyderabad - 500 027, do hereby solemnly state and affirm as under:
I am the Secretary of the Appellant society in respect of the appeal filed, against the order u/s 143(3) rws 263 for the Assessment Year 2012-13, before the Honorable Commissioner of Income-tax (Appeals)- 7, Hyderabad, and as such I am conversant with all the facts relating thereto.
The due date for filing an appeal against the said order was expired on 28.01.2018. However, the same was filed on 09.02.2019, with a delay of 376 days. In this regard, it is humbly submit that, the secretary of the Appellant society was not of the factum of passing of the assessment order in question, because of the fact that, there were disputes among the members, after a raid by the CCS officials was carried on the college premises and seized the several records of the institution, as a result the colleges were closed and the communication between the members were halted. But, the appellant came to know about order only on 29.01.2019 when the notice from the department was served on the Appellant regarding pending outstanding demand of Rs. 15,34,770/- for the AY.2012-13. Immediately thereafter, the secretary of the Appellant society approached Mr.P.Jitender Reddy, Chartered accountant who had been its Authorized Representative to handle the tax matters to file an appeal before CIT (Appeals)-7. I, therefore, submit that the delay in filing the appeal was neither intentional nor out of negligence, but due to the circumstances beyond the Appellant's control, as explained above. In view of the same, the Hon'ble CIT(A)-7 is prayed to condone the delay of 376 days and admit the Appeal. What is stated above is true to the best of my knowledge and belief.”
3.1. Ld.Counsel for the assessee further submitted that the fact of the raid by the CCS officials on the college premises and that as a result of the same, the colleges run by the assessee society are closed down is not under dispute. He submitted that it is because of these reasons that there was no communication between the Members of the Society resulting in the delay in filing of the appeal before the CIT(A). He therefore submitted that the delay may be condoned and the matter may be remanded to the file of CIT(A) for deciding the merits of the issue.
Ld.DR, however, opposed the condonation of delay and submitted that the assessee has not explained the reasonable cause for the delay in filing of the appeal before the CIT(A) belatedly, due to which the CIT(A) has refused to condone the delay.
Having regard to the rival contentions and material on record, we find that the factum of the raid by the CCS Officials and the closure of the colleges therefore is not disputed by the Department. In such circumstances, we are convinced that the delay in filing of the appeal is neither willful nor wanton but is due to the reasons beyond the control of the assessee. Hence, the delay in filing of the appeal before the CIT(A) is condoned and the CIT(A) is directed to consider the appeal on merits after giving the assessee a fair opportunity of hearing.
In the result, the appeal of assessee is treated as allowed.
Order pronounced in the open court on 19th February, 2020