ACIT, NEW DELHI vs. M/S. SILVER IMPEX, NEW DELHI

The Tribunal in this case has passed a rectification order dated 5th August, 2013 in M.A.No.70/Del/2011 arising out of 1995-96 whereby the Tribunal had directed to recall the order of the Tribunal dated 20th August, 2010 for the limited purpose, i.e., for adjudication of ground of appeal No.4 of the Revenue’s appeal.

The ground of appeal No.4 of the Revenue’s appeal reads as under:-

“The ld.CIT(A) erred in law and on facts in condoning the delay of almost twelve years in admitting the appeal filed by the assessee.”

Learned DR submitted that no specific reason was given by the learned CIT(A) for condoning the inordinate delay of almost twelve years in admitting the appeal filed by the assessee. He submitted that the assessee owes an explanation day-wise to explain the each day of delay in filing the appeal before the CIT(A). He submitted that there should be finality to litigation and once the assessee has not filed appeal before the first appellate authority and there is no valid reason for the delay in filing the appeal before the CIT(A), the CIT(A) should have refused to condone the delay.

Learned counsel for the assessee submitted that the delay in filing the first appeal before the learned CIT(A) was for reasonable cause and the learned CIT(A) has passed a speaking and detailed order on this issue considering the plea of the assessee and has also considered the relevant case law including that of the Hon'ble Supreme Court. He relied on the order of the learned CIT(A).

We have considered the rival submissions on the limited issue of ground No.4 of the Revenue’s appeal regarding condonation of delay of almost twelve years by the learned CIT(A). We find that initially there was no tax demand nor any demand notice was served u/s 156 on the assessee along with the assessment order and the impression was that the appeal could be filed only if there was a disputed demand. The CIT(A) has discussed the facts of the case in detail in his appellate order and in paragraph 5.3 of his appellate order, he has mentioned that in the peculiar facts of this case, none of appellate authorities heard the appeal on merits leading to no opportunity of being heard given for the last twelve years. The assessee, after its 3 ITA-1825/Del/2010 appeal being rejected on technical ground by the ITAT, came before the CIT(A) against the original order u/s 143(3) and this whole process caused delay for which the assessee has requested for condonation. Learned CIT(A) has discussed the relevant case law applicable to the facts of the case of the assessee. We find that in the facts and circumstances of the case, there was no fault on the part of the assessee for the delay in filing the first appeal before the CIT(A) and the CIT(A) has rightly concluded that the assessee has filed the appeal before the CIT(A) against the original order u/s 143(3) after its appeal being rejected on technical ground by the Tribunal and has held that the delay was due to valid reasons. We, being in agreement with the speaking order passed by the learned CIT(A) on this issue, confirm the same and ground No.4 of the Revenue’s appeal is dismissed.

In the result, the appeal of the Revenue is dismissed to the extent mentioned above. Decision pronounced in the open Court on 5th October, 2015.