KVC INFRASTRUCTURES,VISAKHAPATNAM vs. ASSISTANT COMMISSIONER OF INCOME TAX, VISAKHAPATNAM

Facts

The assessee firm, engaged in civil contracts, filed its return declaring income for AY 2017-18. The Assessing Officer (AO) rejected the books of accounts under Section 145(3) and estimated income at 8% of gross receipts, making an addition. The Commissioner of Income Tax (Appeals) (CIT(A)) dismissed the assessee's appeal due to a 26-day delay, refusing to condone it despite the assessee's plea of bonafide reasons and delayed knowledge of the assessment order.

Held

The Income Tax Appellate Tribunal (ITAT) held that although the assessment order was technically served via email as per the Information Technology Act, the 26-day delay in filing the appeal was not inordinate and due to bonafide reasons. Citing Supreme Court precedent, the ITAT emphasized adopting a justice-oriented and liberal approach for condoning delays. The ITAT set aside the CIT(A)'s order and remanded the matter back to the CIT(A) to condone the delay and decide the appeal on its merits.

Key Issues

Whether the CIT(A) erred in not condoning a 26-day delay in filing the appeal and if a justice-oriented and liberal approach should be applied in such matters, especially given the assessee's claim of bonafide delay and delayed knowledge of the assessment order.