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Facts
The assessee filed an appeal with a delay of 445 days against an order from the CIT(Appeals). The assessee cited financial difficulties and closure of business as reasons for the delay, claiming lack of staff and personal stress. The Revenue strongly opposed the condonation of delay.
Held
The Tribunal observed that the assessee's submissions for condonation of delay were vague and lacked evidence. The assessee was aware of the proceedings and had represented before the CIT(Appeals) prior to the order being passed, yet failed to properly explain the significant delay.
Key Issues
Whether the delay of 445 days in filing the appeal can be condoned based on the reasons provided by the assessee.
Sections Cited
40A(3)
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Income Tax Appellate Tribunal, DELHI BENCH “G” NEW DELHI
Before: SHRI CHALLA NAGENDRA PRASAD & SHRI M BALAGANESH
सुनवाईक�तारीख/ Date of hearing: 25.08.2025 29.08.2025 उ�ोषणाक�तारीख/Pronouncement on आदेश /O R D E R PER C.N. PRASAD, J.M.
This appeal is filed by the Assessee against the order of the Ld. CIT(Appeals)-NFAC, Delhi dated 17.10.2023 for the AY 2010-11 in sustaining the addition made u/s 40A(3) of the Act by the Assessing Officer.
This appeal is filed with a delay of 445 days and the assessee has filed petition for condonation of delay. The Ld. Counsel for the assessee referring to the petition for condonation of delay submitted that the delay occurred for the reason that the assessee company closed down its business since past so many years due to financial difficulties and there was no Staff/Accountant for past so many years due to closure of the business. Therefore, it is submitted that the delay was occurred only because the assessee closed down its business operations and office, hence, the assessee could not file appeal in time.
On the other hand, the Ld. DR strongly opposed for the condonation of delay.
4. Heard rival contentions. The assessee filed the following application seeking condonation of delay:
“APPLICATION FOR SEEKING THE CONDONATION OF DELAY IN FILING THE ABOVE MENTIONED APPEAL IT IS MOST RESPECTFULLY SUBMITTED AS UNDER: - 1. That the aforesaid matter is filed by the appellant for seeking Condonation of delay in filing appeal with Income Tax Appellate Tribunal against the order of CIT(Appeals).
2. That the Appellant has filed an appeal against theorder dated 23rd October 2023 passed by CIT(Appeals).
3. That this application has been filed by the appellant for seeking condonation of delay of 445 days in filing the accompanying appeal because the appellant has closed down its business since past so many years due to financial difficulties in business, due to this the appellant has no Staff/Accountant for past so many years and after closing of business the appellant became depressed due to this.
That the wife of the appellant was also suffering from various old age diseases and due to this the appellant was even more stressed.
5. That the order dated 23rd October 2023 passed on 23rd October 2023 was uploaded on Email by the CIT (Appeals) and the appellant could not visit its mail box regularly due to the above mentioned facts.
6. That the delay in filing the appeal with the Income Tax Appellate Tribunal, New Delhi was unintentional and without any malafied intention.
7. That due to above mentioned facts and circumstances this inadvertent delay was caused.
That the appellant sincerely prays to this Hon’ble Tribunal to condone this delay.”
On perusal of the application seeking for condonation of delay, we observed that the assessee contended that the delay of 445 days in filing appeal is due to closure of its business since past so many years due to financial difficulties in business. It is also the contention that the assessee could not visit its mail box regularly since the wife of one of the directors was suffering from various old age diseases and due to this the director was also on stress. The assessee explained that the delay in filing the appeal before the Tribunal was unintentional and without any malafide intention.
However, we observed that all the above submissions of the assesseen made in the petition were without any evidences and vague submissions. Nothing is placed on record to suggest that the business operations and office of the assessee were closed and there was no staff working. In the application seeking for condonation of delay the assessee has stated that the assessee has closed down its business since past so many years without any evidence.
Furthermore, the assessee has represented before the Ld. CIT(Appeals) as early as in October, 2023, the Ld. CIT(A) has passed the order considering the submissions of the assessee dated 19.05.2023 and 22.09.2023 furnished by the assessee before the Ld. CIT(Appeals). The assessee is aware of the proceedings before the Ld. CIT(Appeals) as the assessee has represented before the Ld. CIT(Appeals) as early as in September, 2023. Therefore, in our view the assessee has not properly explained the delay of 445 days in filing the appeal before the Tribunal and thus, we reject the application seeking for condonation of delay.
In the result, appeal of the assessee is dismissed in limne without going into the merits of the case.
Order pronounced in the open court on 29.08.2025