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Facts
The assessee filed an appeal before the CIT(A) with a delay of over five months. The reason for the delay was the initiation of a rectification process, and the assessee's CA passed away. The CIT(A) dismissed the appeal due to this delay.
Held
The Tribunal held that substantial justice should not be denied on technical grounds. The reasons provided for the delay, including the initiation of rectification and the death of the CA, were considered sufficient cause.
Key Issues
Whether the delay in filing the appeal before the CIT(A) should be condoned, and if so, whether the appeal should be restored to the CIT(A) for a decision on merits.
Sections Cited
250, 143(1), 80P(2)(d), 249(2), 249(3)
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Income Tax Appellate Tribunal, ‘J(SMC
Before: SHRI BR BASKARAN & SHRI SUNIL KUMAR SINGH
आदेश / O R D E R PER SUNIL KUMAR SINGH (J.M): 1. This appeal has been preferred against the impugned order dated 14.02.2024 passed in Appeal no. NFAC/2019-20/10154660 by the Ld. Commissioner of Income–tax(Appeals)/ National Faceless Appeal Centre (NFAC) [hereinafter referred to as the “CIT(A)”] u/s.
New Vasant Apartment Co-operative Housing Society Limited 250 of the Income-tax Act, 1961 [hereinafter referred to as "Act"] for the Assessment year [A.Y.] 2020-21, wherein learned CIT(A) has dismissed assessee's appeal upon rejection of assessee’s application for condonation of delay.
Briefly stating, appellant assessee filed its return of income for A.Y. 2020-21 on 15.09.2020 and claimed deduction u/s. 80P(2)(d) of Rs. 10,22,135/-. The intimation order u/s. 143(1) of the Act was passed, wherein CPC disallowed the claim of aforesaid deduction and assessed total income of the assessee at Rs. 10,22,140/-. Aggrieved, assessee filed an appeal before learned CIT(A), who dismissed assessee’s appeal merely upon rejection of assessee’s application for condonation of delay.
Assessee has approached this Tribunal on the ground that learned CIT(A) has erred in dismissing first appeal due to delay ignoring the fact that assessee initiated the process of rectification and assessee’s CA died in the year 2017.
We have heard the parties and perused the material available on record.
Learned AR has prayed to set aside impugned order on the ground stated hereinabove.
Learned DR submitted that no sufficient cause was shown by the assessee before the first appellate authority for the condonation of the said delay.
We notice that the limitation period for filing an appeal before learned CIT(A) u/s. 249(2) of the Act is 30 days. However, section 249(3) of the Act empowers the first appellate authority to condone the delay if satisfied that appellant had sufficient cause for not presenting it within that period. We further notice that the appellant New Vasant Apartment Co-operative Housing Society Limited filed the present appeal before learned CIT(A) on 12.06.2022, whereas the date of order u/s. 143(1) was on 25.11.2021 i.e after a delay of about more than five months. The reason shown by appellant was that he initiated rectification process and the assessee was confident of getting relief, resulting in the said delay.
It is well established principle of law that the substantial justice cannot be denied on technical aberrations. In an adversial justice system like ours, no party should ordinarily be denied the opportunity of participating in the process of justice dispensation. Justice is the goal of jurisprudence. Any interpretation which eludes or frustrates the recipient of justice can not to be followed. The cause shown of resorting to rectification process before learned CIT(A) appears to us to be sufficient. We, deem it just and proper in the circumstances to condone the said delay in filing the first appeal before the first appellate authority.
In the result, the appeal is allowed. The impugned order dated 14.02.2024 is set aside. The delay in filing the first appeal before first appellant authority i.e learned CIT(A) stands condoned. We restore the matter back to the file of learned CIT(A) for passing order afresh on merit in accordance with law. Needless to say that the first appellate authority shall ensure the substantial compliance of the principles of natural justice. Order pronounced on 15.10.2024.