2020 (12) TMI 1211 - AT - Income Tax

Condonation of delay in filling rectification application - application under Vivad se Vishwas Scheme - HELD THAT - The reasons for delay in filing present two MAs cannot be simply brushed aside as the same are based on the facts narrated by the assessee and supported by an affidavit which deserve reasonable and lenient consideration in view of Rule 24 of the Income Tax (Appellate Tribunal) Rule 1963. In view of this and coupled with the fact that the assessee has filed letter dated 3.11.2020 stating therein that the assessee wants to settle the issue under Vivad se Vishwas Scheme and wants to file declaration for settlement of the issue under appeal by the assessee we condone the delay in filing the MAs. and allow the assessee for exercising option to avail benefit under VSV scheme. Considering the above facts and circumstances the MA of the assessee are allowed and Registry is directed to list these cases for hearing on 20.1.2021.

Summary

Issues:
Late filing of Misc. Applications seeking to recall Tribunal orders due to want of prosecution, reasons for the delay, reliance on tax advisors, condonation of delay, benefit under Vivad se Vishwas Scheme.

Analysis:

1. Late Filing of Misc. Applications:
The assessee filed Misc. Applications seeking to recall Tribunal orders dated 13.11.2017 due to want of prosecution. The applications were late by 270 days as noted by the Registry. The assessee explained the delay through an affidavit detailing reasons, including reliance on tax advisors for all tax-related compliance matters.

2. Reasons for the Delay:
The affidavit highlighted the assessee's reliance on tax advisors for various tax-related tasks, including filing appeals and attending proceedings. The delay was attributed to the negligence and carelessness of the tax advisors, with the assessee claiming no mala fide intention. The affidavit also mentioned the health issues faced by the assessee, like undergoing surgeries and suffering from medical ailments, affecting their ability to handle tax matters effectively.

3. Condonation of Delay:
The assessee's counsel argued that due to valid reasons for the delay, the Misc. Applications should be considered on merit. The Tribunal, after hearing both parties and considering the affidavit and circumstances, decided to condone the delay in filing the applications. This decision was based on the facts narrated by the assessee, supported by the affidavit, and in line with Rule 24 of the Income Tax (Appellate Tribunal) Rule 1963.

4. Benefit under Vivad se Vishwas Scheme:
The assessee expressed the intention to settle the issue under the Vivad se Vishwas (VSV) Scheme and file a declaration for settlement. The Tribunal, taking into account the assessee's desire to avail benefits under the VSV scheme, allowed the Misc. Applications. The cases were listed for hearing on a specified date to proceed further.

5. Conclusion:
Ultimately, the Tribunal allowed the Misc. Applications, condoned the delay, and directed the Registry to list the cases for hearing. The decision was based on the reasons provided by the assessee, the intention to settle under the VSV Scheme, and the overall circumstances of the case. The order was pronounced on 1st December 2020 in Ahmedabad.

This detailed analysis covers the late filing of Misc. Applications, reasons for the delay, the decision to condone the delay, and the assessee's intention to avail benefits under the VSV Scheme, providing a comprehensive overview of the judgment.