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Facts
The appellant's appeal before the Additional CIT(A) was dismissed due to a delay of 1806 days without providing an opportunity to explain the delay or discussing the merits. The appellant argued that they were not given an opportunity to explain the reasons for the delay.
Held
The Tribunal held that it is a cardinal principle to provide an opportunity to explain the reasons for delay before dismissing an appeal. Relying on Bombay High Court's decision, it was held that the appeal cannot be dismissed solely on delay without discussing merits. The matter was remitted back to the Additional CIT(A) for a fresh decision on delay and merits after giving an opportunity.
Key Issues
Whether the Additional CIT(A) erred in dismissing the appeal on delay without granting an opportunity to the appellant to explain the reasons for the delay and without discussing the merits of the case.
Sections Cited
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Income Tax Appellate Tribunal, Mumbai “B” Bench, Mumbai.
Before: Smt. Beena Pillai(JM) & Shri Omkareshwar Chidara(AM)
From the order of Addl.CIT(A), it is observed that the appeal was dismissed as the same was filed with a delay of 1806 days. The Addl.CIT(A) did not give any opportunity to the appellant to explain the reasons for delay and moreover, the appeal was dismissed without discussing the case on merits, it was argued by Ld. AR of the appellant during the appeal proceedings before the ITAT.
The Ld. DR relied on the order of Ld. Addl.CIT(A).
2 4. Heard both sides. It is the cardinal principle that before deciding the appeal, the appellant should be given an opportunity to explain the reasons for delay. Moreover, Hon'ble Bombay High Court in the case of Premkuar Arjundas Luthra HUF 69 Taxmann.com 407(Mum) has held that Ld. CIT(A) cannot dismiss the appeal merely on delay without discussing the merits. In view of the same, the matter is remitted back to the Ld. Addl.CIT(A) to decide the matter of delay and merits afresh after giving an opportunity.
The appeal of appellant is allowed for statistical purposes.
Order pronounced in the open Court on 22/05/2025.