BAYYE CHANDRA KUMAR,WEST GODAVARI vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1, RAJAHMUNDRY

Facts

The assessee, a civil contractor, faced ad-hoc 10% disallowances totaling Rs. 58,79,989 on 'Hill Rock' and 'metal' purchases by the Assessing Officer under Section 143(3) for A.Y. 2017-18 due to unverifiable self-made vouchers. The assessee's subsequent appeal to the CIT(A) was dismissed ex-parte due to non-participation. The present appeal to the ITAT was filed with a delay of 516 days, for which condonation was sought.

Held

The ITAT found the delay of 516 days to be inordinate and unsupported by plausible or justifiable reasons. The explanations provided by the assessee, including opting for the Vivad Se Vishwas Scheme and a mistaken belief about receiving notices by post despite providing an email ID, were deemed unsubstantiated and indicative of casual/lackadaisical conduct. Citing Supreme Court precedents, the tribunal dismissed the appeal on the ground of limitation.

Key Issues

Whether the inordinate delay of 516 days in filing the appeal before the ITAT should be condoned given the assessee's stated reasons, including opting for a tax settlement scheme and misunderstanding communication methods.