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Facts
The Assessee filed an appeal against the order of the Ld. CIT(A) with a significant delay of over 3 years. The Assessee contended that the delay was due to a bona fide belief that the proceedings were not related to Income Tax, as indicated on the portal. The Assessee's Representative also highlighted that the addition made by the AO had already been set aside by a co-ordinate bench of the Tribunal.
Held
The Tribunal condoned the delay in filing the appeal, taking into consideration the reasons provided by the Assessee and the fact that the assessment order was previously set aside. Consequently, the penalty order and the order of the Ld. CIT(A) were also quashed.
Key Issues
Condonation of delay in filing appeal due to bona fide belief and setting aside of the original assessment order.
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Income Tax Appellate Tribunal, DELHI
(A.Y 2008-09) Shyam Products Pvt. Ltd. Vs Income Tax Officer, 206, Hans Bhawan 1, Ward 23(3), Bhadur Shah Zafar Marg, New Delhi New Delhi-2 PAN: AADCS0943E Appellant Respondent Assessee by Sh. Yogendra Kumar Gupta, CA Revenue by Sh. Om Prakash, Sr.DR Date of Hearing 24/11/2025 Date of Pronouncement 26/11/2025 ORDER
PER YOGESH KUMAR, U.S. JM:
The present appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals/ National Faceless Appeal Centre (‘Ld. CIT(A)/NFAC’ for short), New Delhi dated 10/12/2021 for the Assessment Year 2008-09.
There is a delay of 3 years 5 months 24 days in filing the present Appeal. The Assessee filed an application for condonation of delay contending that the Department while uploading the order impugned of the Ld. CIT(A) in the portal, in the column of ‘proceedings name’mentioned as ‘First Appellate Proceeding (Wealth Tax)’, therefore, the Assessee was under the bona-fide belief that the same is not pertaining to Commissioner of Income Tax Proceedings. The Assessee came to know only when Consultants/CA was looking whether any demand is pending in Assessee’s case in the month of August, 2025 and immediately filed the present Appeal. The Ld. Assessee's Representative further contended that the addition made by the A.O. has already been set aside by the Tribunal in vide order dated 07/11/2022. Thus, sought for condoning the delay in filing the present Appeal and also allowing the present Appeal.
Per contra, the Ld. Department's Representative submitted that, there is no sufficient cause to condone the inordinate delay, thus sought for dismissal of the present Appeal on delay in latches.
We have heard both the parties and perused the material available on record. For the reason stated in the application for condonation of delay and also considering the fact that the Co- ordinate Bench of the Tribunal in vide order dated 07/11/2022, set aside the assessment order, the consequential penalty order cannot be sustained. Accordingly, we condone the delay in filing the present Appeal and allow the Appeal of the Assessee by quashing the penalty order and the order of the Ld. CIT(A).
In the result, Appeal of the Assessee is allowed.