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Facts
The assessee filed an appeal challenging a revision order passed by the Ld. CIT(E) under Section 263 of the Income Tax Act. The appeal was filed after a significant delay of 894 days, with the assessee claiming a bonafide belief and lack of advice from their CA regarding the delay.
Held
The Tribunal noted that the appeal was filed significantly beyond the limitation period and that the reasons provided for the delay were not satisfactory. The assessee failed to explain why they waited almost two years to file the appeal after the assessment order was passed.
Key Issues
Whether the delay in filing the appeal can be condoned, and if the reasons provided by the assessee for the delay are sufficient.
Sections Cited
263, 143(3)
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Income Tax Appellate Tribunal, MUMBAI BENCH “B”, MUMBAI
Before: JUSTICE (RETD.) SHRI C.V. BHADANG & SHRI B.R. BASKARAN
O R D E R PER B.R. BASKARAN, A.M : The assessee has filed this appeal challenging the revision order dated14-03-2022 passed by the Ld. Commissioner of Income Tax (Exemptions)-Mumbai [‘Ld.CIT(E)’] u/s. 263 of the Income Tax Act, 1961 (‘the Act’).
2. At the outset, we notice that the present appeal is barred by limitation by 894 days. The assessee filed an affidavit explaining the reasons for the delay as under:- AFFIDAVIT I, P.V. Jayaraman, Hon. Secretry of The South Indians’ Organization residing at 601, Shreeram Apartments, 90 Ft Road, Mulund East, Mumbai 400081, solemnly declare that:
1. 1. I say, that the assessee is a charitable trust regularly assessed to tax under PAN AAATT3708L.
2. I say, that I was under a bonafide belief that the assessee has to file an appeal only against A.O.’s order giving effect to the CIT’s 263 order and there is no need to challenge the order passed u/s. 263 as the CIT has set aside the assessment order for the limited purpose carrying out verification and inquiry of certain claim made and that too duly following the principles of natural justice.
3. I say that my C.A. also endorsed the view that I need file appeal only against the order giving effect to the C.I.T.’s order and not against C.I.T.’s 263 order.
4. I state that the delay was not intentional or deliberate and therefore it is my earnest request that the same may please be condoned. Whatever stated by me above, is true and correct to the best of my knowledge and belief. Solemnly affirmed and declared on oath at Mumbai, on this 5th day of December, 2024.
For The South Indians’ Organisation P V JAYARAMAN Hon Secretary DEPONENT 3. We heard the parties on this preliminary issue and perused the record. We notice that the revision order passed by the Ld.CIT(E) came to 14-03-2022. However, the assessee has filed appeal only on 22-11-2024. It was submitted by the Ld.AR that CA of the assessee did not advise the assessee to file the appeal against the revision order. In the meantime, the AO passed the order u/s. 143(3) r.w.s. 263 of the Acton 24-12-2022 in order to give effect to the above said revision order, wherein the AO has made certain additions. The Ld A.R submitted that the assessee had filed appeal against the assessment order.
We notice that the AO had passed the order on 24-12-2022 and the assessee has filed the present appeal challenging the revision order after expiry of almost two years. The assessee should have taken advice of the tax counsel in December, 2022 and it is not discernible as to why the assessee should wait for almost two years to file the present appeal. In any case, the assessee has not explained proper reasons for the delay. It is well settled proposition of law that the assessee should give proper reasons for the delay in filing appeal beyond the limitation period. In the instant case, we are of the view that the assessee did not explain proper reasons for filing appeal in November, 2024, even though the assessment order u/s 143(3) r.w.s 263 came to be passed in December, 2022 itself. Accordingly, we decline to condone the delay in filing the appeal before the Tribunal. Accordingly, we dismiss the appeal in limine.