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Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: SHRI N.R.S. GANESAN & SHRI D.S. SUNDER SINGH
PER N.R.S. GANESAN, JUDICIAL MEMBER:
This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) – 15, Chennai and pertains to assessment year 2004-05.
There was a delay of 16 days in filing this appeal by the assessee. The assessee has filed a petition for condonation of delay. We have heard the Ld. representative and the Ld. D.R. We find that there was sufficient cause for not filing the appeal before the stipulated time. Therefore, we condone the delay and admit the appeal.
Shri Saravanakumar, the Ld. Representative for the assessee submitted that there was a delay of 30 days in filing the appeal before the CIT (Appeals). According to the Ld. representative, the accountant who received the order of the CIT (Appeals) resigns the job. Therefore the assessee could not file the appeal within the prescribed time before the CIT (Appeals).
However, the appeal was filed with a delay of 30 days. The CIT (Appeals) however has not condoned the delay of 30 days, though the assessee was prevented from sufficient cause due to resignation of the accountant unexpectedly. Hence an opportunity may be given to the assessee to argue the case on merit before the CIT (Appeals).
On the contrary, Smt. Sumathy Venkatraman, the Ld. Departmental Representative submitted that there was no evidence filed by the assessee to show that the accountant received the copy of the order of the CIT(Appeals), resigned the job. In the absence of any material, the CIT (Appeals) rightly rejected the application of assessee to condone the delay.
We have considered the rival submissions on both sides and perused the material available on record. Admittedly, the appeal of the assessee was filed with a delay of 30 days before the CIT (Appeals). The assessee claims that the accountant who received the copy of the assessment order resigns from the job. Therefore, the assessee was prevented from filing the appeal within the prescribed time. The CIT (Appeals) rejected the claim of the assessee on the ground that no evidence was filed for resignation of the accountant. This Tribunal is of the considered opinion, the object of Income Tax Act is to assess the correct taxable income and levy tax there on. Unless there is an authority of law, tax cannot be levied. Merely because there was delay of 30 days and the assessee could not produce the material evidence for resignation of the accountant, this Tribunal is of the considered opinion, the Revenue could not take advantage of such a situation.
No doubt the limitation plays an important role in the judicial proceedings, so as to give finality to the proceedings. Normally the vested interest due to delay in filing the appeal cannot be disturbed.
However, the delay of filing the appeal in the income tax proceeding may not give any vested interest to the Revenue unless and until the levy of tax is authorized by law. The Department cannot take any advantage of the delay in filing the appeal. This Tribunal is of the considered opinion, condoning the delay of 30 days and giving an opportunity to the assessee to argue the case on merit may not prejudice the interest of Revenue in any way. On the contrary, giving an opportunity to the assessee to argue the case on merit would promote the cause of justice. Taking into consideration of the object for which the Income Tax Act was enacted and in the absence of any statutory authority nothing would be vested on the Income Tax Authorities. This Tribunal is of the considered opinion that delay of 30 days in filing the appeal needs to be condoned.
The resignation of the accountant unexpectedly, certainly prevented the assessee from filing the appeal. Therefore there was a reasonable cause for the assessee for not filing the appeal within the prescribed period. Accordingly the order of the CIT (Appeals) is set aside and the delay of 30 days in filing the appeal by the assessee is condoned. Now, the appeal of the assessee stands restored on the file of the CIT (Appeals). The CIT (Appeals) is directed to consider the appeal of the assessee on merit after giving reasonable opportunity to the assessee.
In the result, the appeal of the assessee stands allowed.
Order pronounced on 31st January, 2017 at Chennai.