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Facts
The assessee filed an appeal against an order dated 14.9.2018 for assessment year 2011-12, but the appeal was filed on February 21, 2022, with an inordinate delay of 1,165 days. The assessee's reasons for the delay included reliance on advisors, lack of coordination, and a belief that compliance had been made by representatives.
Held
The Tribunal held that the appeal was not maintainable due to the gross delay and the assessee's consistent failure to act diligently and rectify defects. The Tribunal noted the assessee's non-cooperation and casual approach throughout the proceedings.
Key Issues
Whether the appeal filed with an inordinate delay of 1165 days is maintainable, and whether the assessee's reasons for the delay justify condonation.
Sections Cited
250(6)
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Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD
Before: SMT.ANNAPURNA GUPTA & SHRI SIDDHARTHA NAUTIYAL
PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER
The above appeal is filed by the assessee against order passed by the ld.Commissioner of Income (Appeals)-11, Ahmedabad dated 14.9.2018 under section 250(6) of the Income Tax Act, 1961 [hereinafter referred to as "the Act" for short] for the assessment year 2011-12.
The assessee has filed its appeal on February 21, 2022. A review of the order sheet reveals that the appeal has been listed for hearing for more than 35 occasions. However, in the majority of these instances, the proceedings had to be adjourned either at the request of the assessee or due to non-appearance by the assessee or its authorized representatives.
2 3. It is pertinent to note that in June 2024, the Bench had specifically directed the assessee to rectify certain defects in the appeal. One of the primary defects, as notified by the Registry of the ITAT, was an inordinate delay of 1,165 days in filing the appeal. Additionally, other defects were also communicated to the assessee by the Registry. Despite being made aware of these issues, including during a hearing held approximately ten months back, the assessee has failed to take any steps to rectify the discrepancies, except for submitting a brief note citing general contentions for the delay.
The assessee has attributed the delay in filing the appeal to the following reasons:
• The partners of the assessee-firm were uneducated and relied entirely on professional advisors.
• The responsibility for filing the appeal was entrusted to Mr.Rajendrakumar Jindal, Chartered Accountant.
• There was a lack of coordination between the CA firms at Ahmedabad and Surat.
• The assessee was under a bona fide impression that due compliance had been made by its representatives.
• Upon later inquiry with the Chartered Accountant’s firm, the assessee realized that no appeal had been filed on its behalf, leading to the belated filing. Notably no affidavit has been filed by any of the Chartered Accountants involved, explaining their inaction or the reasons for the delay in filing the appeal before the ITAT.
Furthermore, the assessee has now submitted a letter dated February 26, 2025, seeking yet another adjournment on the grounds of the non-availability of its authorized representative. However, considering the conduct of the assessee throughout these 3 proceedings, we find no merit in this plea. The assessee has consistently failed to act in good faith, neglected to rectify the defects pointed out by the Registry, and has demonstrated an evident lack of diligence in prosecuting its appeal. Consequently, we hold that the appeal is not maintainable.
Further, it is observed that even during the appellate proceedings before the Ld. CIT(A), the assessee did not appear, leaving the CIT(A) with no option but to pass an ex parte order. The assessee’s persistent non-cooperation and casual approach in pursuing its case cannot be condoned. Such conduct deserves no leniency and must be discouraged to uphold the discipline of judicial proceedings.
Considering the fact that the assessee has failed to justify the delay in filing of the present appeal of 1165 days, the present appeal we hold, is not maintainable.
Given the stubborn inaction of the assessee and its failure to prosecute the appeal in a diligent manner, we find no other recourse but to dismiss the appeal as non-maintainable.
In the result, the appeal of the assesse is dismissed.
Order pronounced in the Court on 7th March, 2025 at Ahmedabad.