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Facts
The assessee filed an appeal for AY 2016-17 challenging a CIT(A)/NFAC order that refused to condone a 2132-day delay in filing a lower appeal. This delay pertained to a CPC processing dated 02.02.2017, and the assessee had submitted a condonation petition explaining the circumstances.
Held
Citing judicial precedent, the Tribunal held that the delay should have been condoned to allow for adjudication on merits. Consequently, the Tribunal restored the assessee's appeal back to the CIT(A)/NFAC for fresh adjudication, providing three effective opportunities.
Key Issues
Whether the CIT(A)/NFAC was justified in refusing to condone a significant delay in filing a lower appeal, thereby preventing the case from being heard on its merits.
Sections Cited
143(1)
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Income Tax Appellate Tribunal, DELHI BENCH ‘E’, NEW DELHI
Before: Sh. Satbeer Singh Godara & Sh. M. Balaganesh
Asstt. Year : 2016-17 Microtek Balaji Powertronics Pvt. Ltd. Vs ACIT, (Formerly known as Balaji Circle-42(1), Powertronics), H-56, Udyog Nagar, New Delhi Main Rohtak Road, S.O. Nangloi West, New Delhi-110041 (APPELLANT) (RESPONDENT) PAN No. AAOCM8964A Assessee by : Sh. S. S. Nagar, CA Revenue by : Sh. B. S. Anand, Sr. DR Date of Hearing: 25.11.2024 Date of Pronouncement: 27.11.2024 ORDER
Per Satbeer Singh Godara, Judicial Member:
This assessee’s appeal for Assessment Year 2016-17, arises against the order of CIT(A)/NFAC, Delhi dated 10.07.2023 in DIN & Order No. ITBA/NFAC/S/250/2023- 24/1054257184(1) in proceedings u/s 143(1) of the Income Tax Act, 1961 (in short “The Act”).
Heard both parties at length. Case files perused.
It transpires at the outset that the CIT(A)/NFAC’s impugned lower appellate discussion has refused to condone assessee’s 2132 days delay in filing of the lower appeal instituted on 05.01.2023 against the CPC’s processing dated 02.02.2017. The Revenue’s fundamental contention raised during the hearing in these facts that it was the assessee’s bounden duty to explain a reasonable cause so as to get its 2 Microtek Balaji Powertronics Pvt. Ltd. aforesaid delay condoned in the lower appellate proceedings. It could hardly dispute that the assessee had indeed filed its condonation petition before the CIT(A)/NFAC explaining all the circumstances causing the impugned 2132 days delay and therefore, we quote Collector Land Acquisition vs Mst. Katiji & Ors (1987) 167 ITR 471 (SC) that such a delay ought to have been condoned going by the condonation averments so as to pay way for the adjudication of the corresponding issues on merits. We thus restore the assessee’s instant appeal back to the CIT(A)/NFAC for it’s afresh appropriate adjudication as per law, within three effective opportunities at the taxpayer's risk and responsibility only, to plead and prove it’s case in consequential proceedings. Ordered accordingly.
3.1 No other ground or arguments has been pressed at this stage.
This assessee’s appeal is allowed for statistical purpose in above terms. Order Pronounced in the Open Court on 27/11/2024.