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Facts
The assessee's appeal before the CIT(A) was dismissed in limine due to a delay of 1393 days, without condoning the delay. The assessee had cited extreme financial difficulties, business halt, seizure of lorries, and multiple litigations as reasons for the delay. The present appeal before the Tribunal arises from this dismissal.
Held
The Tribunal condoned the delay of 42 days in filing the present appeal before them, finding sufficient cause. However, regarding the appeal before the CIT(A), the Tribunal noted that the CIT(A) dismissed the appeal without condoning the substantial delay of 1393 days, despite the assessee providing reasons and subsequently evidence. The Tribunal restored the case to the CIT(A) to reconsider the condonation application.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal in limine without condoning a substantial delay, and whether the assessee's reasons for delay were sufficient to warrant condonation.
Sections Cited
250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI S.R. RAGHUNATHA
(अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/Appellant by : Ms.N.V.Lakshmi, Advocate ��यथ� क� ओर से/Respondent by : Ms. Gouthami Manivasagam, JCIT सुनवाई क� तारीख/Date of Hearing : 25.02.2025 घोषणा क� तारीख/Date of Pronouncement : 26.02.2025 आदेश /O R D E R
PER GEORGE GEORGE K, VICE PRESIDENT:
This appeal at the instance of the assessee is directed against CIT(A) - NFAC order dated 21.08.2024, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2017-18.
There is a delay of 42 days in filing this appeal. The assessee has filed a petition for condonation of delay stating therein the reasons for belated filing of this appeal and also a supporting affidavit.
On perusal of the aforesaid reasons in the condonation application, we are of the view that there is sufficient cause for belated filing of this appeal and no latches can be attributed to the assessee. Hence, we condone the delay in filing this appeal and proceed to dispose off the appeal on merits.
At the very outset, we notice that CIT(A) has dismissed appeal in limine without condoning delay of 1393 days in filing appeal before him. The Ld.AR submitted reasons for belated filing of appeal, has been extracted at para 2 of the impugned order of the CIT(A). The reasons stated for belated filing of appeal before CIT(A) was that due to extreme financial difficulties the business of the assessee, including seizure of lorries by lenders, hence the delay. It was submitted that CIT(A) has not given any opportunity to explain the reasons for delay in filing appeal before him. It was stated that assessee had to face multiple litigation from various creditors and due to mental agony he was unable to file the appeal on time. The Ld.AR placed on record the details of multiple cases filed against the assessee. The Ld.AR pleaded assessee may be provided with one more opportunity to explain the delay in filing the appeal before the CIT(A).
The Ld.DR supported orders of the AO and CIT(A).
We have heard rival submissions and perused material on record. The AO has passed ex-parte order on best judgement basis. During appellate proceedings, the CIT(A) has not passed order on merits and has dismissed the appeal in limine, without condoning delay of 1393 days in filing the appeal before him. The reasons stated for belated filing of appeal before CIT(A) was due to extreme financial difficulties, the business of the assessee has come to grinding halt, including seizure of lorries by lenders. It is submitted that assessee was facing multiple cases / complaints / plaint / arbitration / notice before various judicial forums i.e., Judicial Magistrate, Sankari, Principal Sub-Court Tiruchengode, Principal District Judge, Salem, Fast Track Court, Tiruchengode etc. (As placed in the paper book filed by the assessee). It is claimed by Ld.AR that assessee was unable to produce details/evidences in support of reasons for belated filing of appeal before the CIT(A) since assessee was suffering from multiple cases and acute financial constraints. The Ld.AR has now produced necessary evidences/ documents in support of the claim of assessee in the paper book filed before us. Therefore, in the interest of justice and equity, we deem it appropriate to restore the case back to the files of CIT(A) to reconsider the condonation application afresh along with evidences / documents filed before us. It is ordered accordingly.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 26th February, 2025.