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Facts
The assessee's appeal was dismissed by the National Faceless Appeal Centre (NFAC) due to a 63-day delay in filing. The assessee claimed the delay was caused by technical difficulties with the new faceless scheme and the Income Tax portal, which was being launched that year.
Held
The tribunal found that the technical glitches and the new NFAC system constituted a reasonable cause for the 63-day delay. It condoned the delay and restored the appeal to the CIT(A)/NFAC for adjudication on merits, ensuring natural justice.
Key Issues
The key legal issue was whether the 63-day delay in filing an appeal before the CIT(A) was due to a reasonable cause, warranting condonation and restoration of the appeal for a decision on merits.
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Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR
(Assessment Year 2016-17) Vagad Seva Sansthan Vs. Income Tax Officer, Vagad Vidhya Vihar Uchha, Exemption Ward,Udaipur. Madhyamik VidhyalayaFaloz,BO Faloj, Dungarpur – 314034 PAN NO. AABTV2740F Assessee by Shri Shrawan Kumar Gupta, Advocate (Virtually) Shri Karni Dan, Addl. CIT-DR Revenue by Date of Hearing 07.01.2026. Date of Pronouncement 28.01.2026. ORDER DR. MITHA LAL MEENA, A.M.:
The appeal by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi[hereinafter referred to as “the NFAC/CIT appeal”] challenging therein dismissal of its appeal on account of Delay of 63 days in violation of principles of natural justice.
At the time of hearing the Ld. Counsel of the assessee submitted that the delay occurred due to technical difficulties encountered in receiving notices in the new faceless scheme of appellate proceedings and consequently downloading the order. The appellant couldn’t promptly adapt the updated procedures for fling appeals. The Ld. AR admitted the importance of adhering to deadlines and clarified that the delay was unintentional. He undertakes that Year 2016-17) that such delays would not recur in the future. Accordingly, he prayed that the short delay of 63 days in filing of appeal having been caused by circumstances entirely beyond its control, may be condoned and the matter be restored to the Ld. CIT(A)/NFAC for adjudication on merits in view of principles of natural justice.
3 The Ld. Addl. CIT(DR) on the other hand, stands by the impugned order.
Heard both the sides, perused the material on record, and the impugned order. The Ld. CIT (A) observed that when there is inordinate delay, one should be very cautious while condoning the delay. The delay of 63 days cannot be condoned simply because the appellant's case is hard and calls for sympathy or merely out of benevolence to the party seeking relief. In our view, the Ld. AR contention that there was a short delay of 63 days in filing of appeal having been caused by circumstances entirely beyond its control, owing to the technical glitches in the Income Tax portal and new system of NFAC of adjudication of appeals was being launched in the very same year did constitute reasonable cause. Without prejudice to above, the appellants prayer for restoring of the matter to NFAC for deciding on merits would not in any way cause prejudice to the interest of revenue.
Year 2016-17) 5. Considering the factual matrix of the case in the light of the principles of Natural Justice, we consider it appropriate to condone the short delay of only 63 days in filing appeal before the CIT(A) by the assessee in respect to assessment year 2016-17. Accordingly, the appeal of the assessee is restored to the file of the Ld. CIT(A)/NFAC to be adjudicated on merits of the case after affording adequate opportunity of being heard. The appellant undertakes that due compliance will be made during the appellate proceedings.
In the result, this appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 28/01/2026.