2019 (1) TMI 1896 - AT - Income Tax

Condonation of delay - delay of 898 days and and 883 days in filing the appeal - reasonable cause - HELD THAT - In the case on hand, the factual matrix, in our view, clearly establishes that the delay was due to the negligence and inaction on the part of the assessee, which could have been avoided by the assessee if he had exercised due care and attention. Therefore in our opinion, in the factual matrix of this case there exists no sufficient and reasonable cause for the inordinate delay in filing the appeals for Assessment Years 2009-10 to 2010-11 by the assessee. We have considered the factual matrix of this case to reach the finding that there existed no sufficient and reasonable cause for the inordinate delay of 898 days and 883 days in filing the appeals for Assessment Years 2009-10 and 2010-11 as the assessee has also not been able to establish that he was prevented by sufficient causes beyond his control from filing these appeals on time. In this view of the matter, we are of the opinion that, in the case on hand, the cause of substantial justice would not be served by condoning the inordinate delay in filing these appeals for which reasonable or sufficient cause has not been established. We accordingly reject these petitions for condonation of delay for Assessment Years 2009-10 and 2010-11.

Summary

Issues:
1. Revisionary proceedings initiated by PCIT u/s 263 of the Income Tax Act, 1961.
2. Condonation of delay in filing appeals for Assessment Years 2009-10 and 2010-11 before ITAT, Bangalore.

Issue 1: Revisionary Proceedings u/s 263:
The Appellate Tribunal, ITAT Bangalore, dealt with appeals by an employee of the Central Excise and Customs Department against orders of Principal Commissioner of Income Tax (PCIT) for Assessment Years 2009-10 and 2010-11. The PCIT initiated revisionary proceedings u/s 263 of the Income Tax Act, considering the assessment orders prejudicial to Revenue's interests. After providing the assessee an opportunity to respond, the PCIT set aside the assessment orders and directed the Assessing Officer to frame fresh orders for the mentioned years. The Tribunal reviewed the case and dismissed the appeals, upholding the PCIT's decision. The Tribunal emphasized the need for substantial and reasonable cause for condoning delays in such matters, citing various legal precedents to support its decision.

Issue 2: Condonation of Delay in Filing Appeals:
The assessee filed appeals before ITAT, Bangalore, challenging PCIT's orders for Assessment Years 2009-10 and 2010-11 after significant delays. The assessee sought condonation of delays of 898 days and 883 days respectively, citing reasons like being misled by a tax consultant and subsequent fresh notices under section 263. The Departmental Representative opposed the condonation, arguing that the delays were inordinate and due to the assessee's negligence. The Tribunal, after considering arguments from both sides and legal precedents, rejected the condonation petitions. It concluded that the delays were not supported by sufficient reasonable cause beyond the assessee's control, indicating negligence on the assessee's part. Therefore, the appeals for the mentioned assessment years were dismissed for not being admitted for adjudication on merits due to the uncondoned delays.

In summary, the Appellate Tribunal, ITAT Bangalore, addressed issues related to revisionary proceedings under section 263 of the Income Tax Act and the condonation of delays in filing appeals for Assessment Years 2009-10 and 2010-11. The Tribunal upheld the PCIT's decision to set aside the assessment orders and directed fresh assessments. Additionally, the Tribunal rejected the condonation of delays in filing appeals, emphasizing the need for substantial and reasonable cause to justify such delays.