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Facts
The assessee's appeal was dismissed by the CIT(A) due to a delay of 787 days, and the assessee failed to respond to five notices. The assessee claimed that the delay was partly due to the Covid period and sought condonation, providing reasons for the belated filing.
Held
The Tribunal noted the significant delay and the assessee's non-response to notices, deprecating the nonchalant attitude. However, in the interest of justice and equity, the matter was restored to the CIT(A) to provide one more opportunity to the assessee to represent its case.
Key Issues
Whether the delay in filing the appeal before the CIT(A) should be condoned, and if so, whether the appeal should be decided on merits after providing the assessee with an opportunity to be heard.
Sections Cited
250 of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE KAND SHRI JAGADISH
आदेश /O R D E R
PER GEORGE GEORGE K, VICE PRESIDENT:
This appeal at the instance of the assessee is directed against CIT(A)’s order dated 21.08.2024, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2017-18.
2. At the very outset, we notice that the appeal of the assessee has been dismissed by the CIT(A) in-limine without condoning the delay in filing the appeal before him (delay of 787 days in filing the appeal). The CIT(A) also noted in spite of five notices issued from the office of the First Appellate Authority to file evidence / submissions, the assessee had not responded to the same.
The ld.AR submitted that assessee had not submitted an affidavit or a condonation application for condoning the delay in filing the appeal before CIT(A). It was stated by ld.AR, however in Column No.15 of Form 35, the reasons for belated filing of appeal before the CIT(A) has been mentioned. It was submitted by the ld.AR that the appeal ought to have been filed on or before 22.01.2020 but due to the Covid period, the appeal was filed only on 17.02.2022. It was submitted that after excluding the Covid period for calculating the limitation for filing of appeal as per the judgment of Hon’ble Apex Court in the case of Cognizance for Extension of Limitation, reported in[2022] 441 ITR 722, the delay is only 52 days in filing the appeal. It was submitted that prior to the period of 15.03.2020, the staff of the assessee society was regularly on leave and consequently, the appeal could not be filed within the due date prescribed. The ld.AR further submitted that First Appellate Authority (FAA) was communicated to one of the staff of the assessee’s authorized representative and the same was not taken note. It was prayed, in the interest of justice and equity, assessee may be provided with one more opportunity to present its case before the CIT(A).
The ld.DR was duly heard.
We have heard rival submissions and perused the materials on record. The office of the CIT(A) had issued five notices to the assessee to furnish the submissions along with the supporting documentary evidence. However, there is no response on the side of the assessee to the aforementioned notices. The assessee claims that notices sent from the office of the First Appellate Authority was issued to the e-mail ID of the assessee’s representative before the FAA and the same was not brought to the notice of the assessee. We strongly deprecate the nonchalant attitude of the assessee in not responding to the notices issued from the office of the CIT(A) / FAA. However, in the interest of justice and equity, we are of the view that assessee ought to be provided with one more opportunity to represent its case and accordingly, we restore the matter to the files of the CIT(A). Before CIT(A), there is a delay of 787 days, after excluding the period of lock-down due to Covid period, the delay in filing the appeal is around 52 days. The assessee shall furnish relevant documentary evidence in support of its claim that there is sufficient cause / reasons for belated filing of appeal before the First Appellate Authority. If the CIT(A) is satisfied with the reasons furnished by the assessee for belated filing of the appeal, needless to state, the CIT(A) shall decide the issue on merits. It is ordered accordingly.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 18th December, 2024 at Chennai.