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Facts
The assessee filed appeals with a delay of 28 days, citing a medical condition of the employee responsible for filing. The CIT(A) dismissed the appeals due to the delay, without considering the merits. The Tribunal reviewed the submissions and affidavits regarding the delay.
Held
The Tribunal condoned the 28-day delay in filing the appeals, considering the explanation to be reasonable and not willful, especially in light of the COVID-19 pandemic's impact. The appeals were remitted back to the CIT(A) for adjudication on merits, subject to the assessee paying a cost of Rs. 5,000/- per year.
Key Issues
Whether the delay of 28 days in filing the appeals before the Tribunal was justifiable and should be condoned, and whether the appeals should be decided on merits.
Sections Cited
Section 5 of the Limitation Act
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Income Tax Appellate Tribunal, “A’’BENCH: BANGALORE
Before: SHRI WASEEM AHMED & SHRI SOUNDARARAJAN K.
Date of Hearing : 06.08.2024 Date of Pronouncement : 28.08.2024 O R D E R PERSOUNDARARAJAN K., JUDICIAL MEMBER:
These two appeals are filed by the assessee challenging the orders of CIT(A)-15, Bangalore dated 25.3.2024 in respect of assessment years 2015-16 & 2016-17.
These appeals are filed with a delay of 28 days before this Tribunal and the assessee also filed a petition for condonation of the said delay and they explained the reasons for delay that the person who has to look after the filing of appeals was suffering from spondylitis/Sciatica and therefore, he was advised to rest from 20.5.2024 to 20.6.2024 and also enclosed copy of medical certificate and prayed to condone the delay.
We have perused the affidavit filed in support of the delay and the medical certificate furnished by the assessee and we are satisfied that the said delay of 28 days is not willful and hence, we & 1250/Bang/2024 Prestige Estates Projects Limited, Bangalore Page 2 of 11 inclined to condone the delay in filing the appeals before this Tribunal.
Now coming to the appeals, even though the assessee had raised several grounds on merits we have seen that the appellate authority had dismissed the appeals for the reason that there is a delay of 932 and 931 days in filing the appeals. The ld. CIT(A) had not discussed anything on merits but preferred to pass the order on the ground that the appeals were filed beyond the period of limitation and the reasons stated are also not convincing one to condone the said huge delay. We have also perused the affidavit filed by the assessee in support of the delay in filing the appeals before the ld CIT(A), which is as under:
4.1 We have gone through the above submissions made by the assessee and we found that there is some force in the arguments made by the ld. A.R. that the delay is not made willfully. The ld CIT(A) had also not disputed the above said facts and in fact no discussion was made by him while passing the orders. Further, we have also gone through the assessment order and the grounds raised by the assessee before the ld. CIT(A) and satisfied ourselves that the issue has to be decided on merits. Even though the reason adduced by the assessee that the person who is looking after the filing of appeals, etc. Mr. Satish Chandrasekhar, Sr. Manager (Taxation) was completely engaged in other important works,we feel that the assessee being a big company and having support from other employees worked under him,could be vigilant in pursuing the important matters like filing the appeals in time. Moreover, the Covid 19 and the subsequent Suo Moto orders of the Hon’ble Supreme Court extending the period of limitation would not help the assessee since the assessment order is dated 21.12.2018 & 22.12.2018.
& 1250/Bang/2024 Prestige Estates Projects Limited, Bangalore Page 10 of 11 4.2 On the other hand, we have to see what will be the consequencesif the delay is not condoned. In that circumstances the assessee will not have an effective opportunity to contest the issue on merits for no fault of the assessee company. Further great prejudice would be caused to the assessee on the other hand no prejudice would be caused to the revenue if the delay has been condoned and the issue has been decided on merits.We are also keeping in mind that the dispute is under the fiscal statute and the state is not entitled to get their revenue illegally and without authority of law.Moreover the dispute is not between any private parties. The law requires that the authorities should make the assessment in accordance with law. By taking into consideration of all the facts and circumstances, we are inclined to allow the appeals filed by the assessee by condoning the delay in filing the appeals before ld. CIT(A) on terms. The assessee company being the assessee for long time they should be very careful in dealing with the assessment orders but in this case, they miserably failed to follow up the matter. 4.3 We therefore, of the opinion that this is a fit case to impose costs and we ordered accordingly by imposing a cost of Rs.5,000/- for each year for condoning the above said delay and on such payment, the ld. CIT(A) is directed to take up the appeals on merit and decide the issue on merits, after hearing the assessee. We also made it clear that the above said cost should be paid into the account of Prime Minister’ National Relief Fund with in a period of 4 weeks from the date of the receipt of the copy of this order and the challan should be produced before the ld. CIT(A). If the assessee had not complied with the direction for payment of costs, the order of the ld CIT(A) would restore automatically without any reference to this Tribunal. With the above directions, we remit the issue to the file of ld. CIT(A) for fresh consideration on merits after hearing the assessee. Since we have remitted the issue to the file of ld. & 1250/Bang/2024 Prestige Estates Projects Limited, Bangalore Page 11 of 11 CIT(A), we are not adjudicating the other grounds raised by the assessee.