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Facts
The assessee filed an appeal with a delay of 13 days. The appeal arose from the confirmation of penalty orders by the AO. A coordinate bench of ITAT had previously restored the matter of quantum additions to the CIT(A) for fresh adjudication.
Held
The Tribunal condoned the delay of 13 days in filing the appeal by liberally interpreting the expression 'Sufficient Cause'. Following the precedent of quantum additions being restored, the present appeal was also restored to the file of the CIT(A) for fresh adjudication.
Key Issues
Whether the delay in filing the appeal can be condoned, and whether the appeal should be restored to the CIT(A) for fresh adjudication considering the prior restoration of quantum additions.
Sections Cited
271(1)(c)
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Income Tax Appellate Tribunal, “C” BENCH, MUMBAI
Before: SHRI SANDEEP GOSAIN & SHRI PRABHASH SHANKAR
ORDER Per: SHRI. SANDEEP GOSAIN, J.M.: The present appeal filed by the assessee arises out of final assessment order passed by National Faceless Appeal Centre (NFAC), Delhi dated 27/09/2024 on following grounds of appeal:
“1. In the facts and circumstances of the case and in law, the Learned National Faceless Appeal Centre (NFAC)/ CIT (Appeals) has erred in upholding the action of the Ld. Assessing Officer of levying penalty u/s 271(1)(c) of Rs. 7,35,966/-. 2. The appellant craves leave to add, alter, delete or modify all or any of the above grounds of appeal. All the above grounds are without prejudice to each other.”
AY 2013-14 Pallavi Santosh Bhave 2. From the records, we noticed that there is a delay of 13 days in filing the present appeal regarding which assessee has moved an application for seeking condonation of Delay coupled with an affidavit.
Whereas on the contrary, Ld. DR contested the said application and requested to dismiss the same as there is no sufficient cause for condoning the delay.
After having heard the counsel for both the parties on this application and considering the entire factual position as explained before us and also keeping in view the principles laid down by the Hon’ble Supreme Court in the case of Land Acquisition Collector vs MST Kitji& Others, 1987, AIR, 1353 Supreme Court Wherein it has been held that where substantial justice is pitted against technicalities of non-deliberate delay, then in that eventuality substantial justice is to be preferred. In our view, the principles of advancing substantial justice are of prime importance. Hence, considering the explanation put forth by the assessee by justifiably and properly explaining the delay, which occurred in filing the appeal and construing the expression ‘Sufficient Cause’ liberally, we are inclined to condone the delay in filing the appeal. Consequently, the application filed by the assessee for seeking condonation of the delay stands allowed. The appeal is admitted to be heard on merits.
After having gone through the records of the present case and hearing the parties, we found that the present appeal has arisen AY 2013-14 Pallavi Santosh Bhave out of the confirmation of penalty orders passed by the AO. However, we noticed that the Co-ordinate Bench of ITAT in assesses own case on quantum additions have restored the matter back to the file of Ld. CIT(A) for fresh adjudication by providing opportunity of hearing to the parties vide order dated 12.03.2025 in ITA No. 6351/MUM/2024.
Since the quantum additions have already been set aside to the file of Ld. CIT(A) for fresh adjudication, therefore, in the fitness of the things the present file is also restored back to the file of Ld. CIT(A) for deciding it afresh after adjudicating, the quantum appeal on merits. Consequently, Considering the factual position in mind, the appeal of the assessee is restored to the file of Ld. CIT(A) for fresh adjudication by providing opportunity of hearing to the parties.
Before parting, we make it clear that our decision to restore the matter back to the file of the Ld. CIT(A). Appeal shall, in no way be construed, as having any reflection of expression on the merits of the dispute, which shall be adjudicated by the Ld. CIT(A) independently in accordance with law.
In the result, appeal filed by the assessee stands allowed for statistical purposes.
Order pronounced in the open court on 04/08/2025