2012 (7) TMI 1084 - AT - Income Tax

Summary

Issues involved: Condonation of delay in filing the appeal before the Commissioner of Income-tax(A).

Summary:

Issue 1: Condonation of delay in filing the appeal before the Commissioner of Income-tax(A)

The appeal before the Appellate Tribunal ITAT Cochin pertained to the condonation of a 100-day delay in filing the appeal before the Commissioner of Income-tax(A) for the assessment year 2007-08. The assessee, engaged in civil construction business, faced financial difficulties due to non-payment of bills by customers, resulting in a loan of Rs. 7 crores becoming a non-performing asset. Legal proceedings with banks and government departments further hindered the assessee's ability to file the appeal in time.

The ld. representative for the assessee argued that the delay was beyond the assessee's control, citing financial crises and multiple litigations as reasons for the delay. On the other hand, the ld. DR contended that there was no reasonable cause for the delay, emphasizing that court proceedings were not sufficient grounds for missing the filing deadline.

After considering both sides' submissions and reviewing the material on record, the Tribunal acknowledged the 100-day delay but found that the financial crisis faced by the assessee was a reasonable cause for missing the deadline. The Tribunal emphasized that substantial justice should prevail over technicalities, citing a relevant judgment. Consequently, the delay was condoned, the Commissioner of Income-tax(A)'s order was set aside, and the appeal was restored for further consideration on its merits.

In conclusion, the Tribunal allowed the appeal of the assessee, granting relief in the matter of the delay in filing the appeal before the Commissioner of Income-tax(A).