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Facts
The assessee, Mayuri Electronics Private Limited, filed its return for AY 2014-15. The Assessing Officer made an addition of Rs. 1,92,00,000/- for unexplained credits. The assessee's appeal before the CIT(A) was dismissed due to lack of submissions, and the CIT(A) confirmed the AO's order.
Held
The Tribunal held that the assessee's explanation for the 851-day delay in filing the appeal was general and lacked specific details or material evidence, failing to establish a 'sufficient cause'.
Key Issues
Whether the delay of 851 days in filing the appeal can be condoned based on the assessee's explanation of ignorance of faceless proceedings and issues with the former Chartered Accountant.
Sections Cited
143(3), 68, 221, 250
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Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI S.R. RAGHUNATHA
आदेश / O R D E R
PER S. R. RAGHUNATHA, AM:
This appeal of the assessee is filed against the order of the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, (in short ‘ld.CIT(A)’) for the assessment year 2014-15, vide the order dated 26.06.2023 against the assessment order passed by the AO, Circle-1, Namakkal, u/s.143(3) of the Income Tax Act, 1961 (in short ‘the Act’) dated 17.12.2016.
The brief facts of the case are that the assessee is a private limited company and has filed its return of income on 23.11.2014 for the A.Y.2014-15, returning total income of Rs.15,97,990/-. The case was selected for scrutiny under CASS and statutory notices issued to the assessee and called for details. In response, the assessee submitted written submission along with supporting documents for consideration. On perusal of the documents submitted by the assessee, the Assessing Officer made an addition of Rs.1,92,00,000/- as unexplained credits u/s.68 of the Act and completed the assessment u/s.143(3) of the Act dated 17.12.2016.
Aggrieved, the assessee preferred an appeal against the order of the AO before the Ld.CIT(A), NFAC, Delhi on 20.01.2017. The Ld.CIT(A) dismissed the appeal filed by the assessee due to absence of written submission and documentary evidence in support of grounds of appeal and hence, the ld. CIT(A) passed an order dated 26.06.2023 by confirming the order of the Assessing Officer. Aggrieved by the impugned order of the Ld.CIT(A), the assessee is in appeal before us with a delay in filing the appeal by 851 days.
4. At the threshold, we observe that there is a delay of 851 days in the filing of the present appeal by the assessee. The assessee has furnished an affidavit explaining that the assessee has no knowledge of faceless proceedings and former Chartered Accountant also failed to effectively track and communicate the notices for timely compliance and the assessee became aware of the impugned order passed by the ld.CIT(A) only after receiving of notice u/s.221 of the Act dated 15.12.2025 regarding outstanding demand for A.Y.2014-15 and immediately filed the appeal on 29.12.2025 before the Hon’ble Tribunal. The ld.AR for the assessee prayed for condoning the delay in filing the appeal before this Tribunal by referring to the Affidavit and prayed for one more opportunity to the assessee.
5. Per contra, the ld.DR submitted that the assessee has filed this appeal with an exorbitant delay without having any sufficient reason before the ld.CIT(A) and hence the ld.CIT(A) has rightly dismissed this appeal without admitting the same. Therefore, the ld.DR submitted that the delay cannot be condoned and prayed for dismissing the appeal.
We have heard the case, perused the materials on record, and gone through orders of the authorities below. Upon perusal of the affidavit and after affording due opportunity of hearing from both parties, there is an admitted delay of 851 days in filing the present appeal before the Tribunal against the order passed u/s.250 of the Act dated 26.06.2023. The assessee has furnished an affidavit explaining that the assessee has less knowledge of new faceless proceedings and former Chartered Accountant also failed to effectively track and communicate the notices for timely compliance and the assessee became aware of the impugned order passed by the ld.CIT(A) only after receiving of notice u/s.221 of the Act dated 15.12.2025 regarding outstanding demand for A.Y.2014-15.
The delay involved in the present case is substantial and inordinate, being 851 days. The law is well settled that while the expression “sufficient cause” should be construed liberally, the party seeking condonation must demonstrate bona fide reasons explaining the entire period of delay. In the present case, the explanation offered by the assessee is general in nature, namely lack of knowledge of faceless proceedings and dependence on Chartered Accountants. No specific dates, circumstances, or material evidence have been furnished to explain the delay for each period. Mere assertion of ignorance of law cannot constitute sufficient cause.
The conduct of the assessee shows that after filing the appeal, no participation in the appeal proceedings before the ld.CIT(A). The plea that he became aware of the order only recently is therefore not acceptable. The affidavit lacks credibility and does not inspire confidence.
It is settled law that inordinate delay cannot be condoned on vague and general grounds, particularly when the conduct of the party shows conscious inaction and acquiescence. In view of the above facts and circumstances, we are of the considered opinion that the assessee has failed to establish sufficient cause for condoning the delay of 851 days in filing the appeal before the Tribunal. Accordingly, the condonation petition is rejected. Since the delay is not condoned, the appeal filed by the assessee is dismissed in limine as barred by limitation.
In the result, the appeal filed by the assessee is dismissed.
Order pronounced in the open court on 18th March, 2026 at Chennai.