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Facts
The assessee, engaged in the business of crushing and selling stones, filed an appeal before the CIT(A) with a delay of 1428 days, which was dismissed by the CIT(A) for lack of reasonable cause. The assessee contended that a significant portion of this delay was attributable to the Covid-19 pandemic period.
Held
The ITAT observed that excluding the Covid period would reduce the delay to 653 days. Accepting the assessee's uncontroverted claim that the Assessing Officer's order was not served on time, the ITAT found a reasonable cause for the delay, condoned it, and restored the matter to the CIT(A) for fresh adjudication.
Key Issues
Whether there was reasonable cause for the delay in filing the appeal before the CIT(A), specifically considering the exclusion of the Covid-19 pandemic period from the total delay.
Sections Cited
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Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN
Before: Shri Inturi Rama Rao & Shri Prakash Chand Yadav
: Asst.Year 2015-2016 Kumbaleri Sands The Income Tax Officer Kumbaleri Post v. Ward – 2 Meenangadi Kalpetta. Wayanad – 673 591. PAN : AALFK8503F. (Appellant) (Respondent) Appellant by : Sri.Hrithwik D.N., Advocate Respondent by : Smt.Leena Lal, Senior AR Date of Pronouncement : 30.05.2025 Date of Hearing : 27.05.2025. O R D E R
Per Prakash Chand Yadav, JM :
The present appeals of the assessee are arising from the orders of the National Faceless Appeal Centre / learned Commissioner of Income-tax (Appeals [“CIT(A)” for short] dated 16.12.2024, having DIN & Order No.ITBA/NFAC/S/250/ 2024-25/1071256420(1) & 1071267860(1) and relates to the assessment years 2015-2016 and 2016-2017, respectively.
At the outset, it is observed that the assessee is a firm and engaged in the business of crushing and selling of various stones, could not file the appeal against the order of Assessing Officer before the CIT(A) in time, and there was a delay of 1428 days before the CIT(A). The CIT(A) dismissed the appeal of the & 37/Coch/2025. Kumbaleri Sands. assessee on the ground that the reasons given by the assessee are not constituting reasonable cause. It is the contention of the assessee that the delay of 1428 days included the Covid period of two years and if one would exclude the Covid period, the delay would be 653 days only. The learned Counsel for the assessee craves for one more opportunity before the CIT(A).
The learned DR relied upon the orders of the authorities below.
After considering the rival submissions, we observe that the CIT(A) was not correct in dismissing the appeal without excluding the period of Covid from the total period of delay. If one would exclude the period of covid from the total period of delay then the total delay is only 653 days before the Ld CIT(A). We have seen the reasons given by the assessee for the period of delay before the CIT(A) and convinced that there was reasonable cause for the delay in as much as the order of the AO was not served on the assessee in time, this averment has not been refuted by the DR. Therefore we hereby condone the delay and restore the matter to the file of CIT(A) for deciding fresh.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on this 30th day of May, 2025.