2021 (2) TMI 1174 - AT - Income Tax

Condonation of delay - 405 days delay in filing appeal - HELD THAT - Assessee s instant appeal suffers from 405 days delay in filing, he has filed condonation petition along with the affidavit averring therein, inter-alia, that due to covid-19 pandemic he could not consult his tax consultants which caused the impugned delay resulting in delay in filing of the instant appeal. Case law Collector Land Acquisition vs Mst. Katiji Ors, 1987 (2) TMI 61 - SUPREME COURT and University of Delhi Vs. Union of India 2019 (12) TMI 1293 - SUPREME COURT hold that such a delay; supported by cogent reasons, deserves to be condoned so as to make way for the cause of substantial justice. I accordingly hold that assessee s impugned delay of 405 days is neither intentional nor deliberate but due to the circumstances beyond his control. Case is now taken up for adjudication on merits. It transpires during the course of hearing that CIT(A) s lower appellate order has been passed ex-parte. Learned DR fails to rebut the clinching fact that CIT(A) has dismissed the appeal of the assessee without discussing the issue(s) on merits as contemplated u/s 250(8) of the Act. I therefore deem it fit and proper to restore the file back to CIT(A) for his fresh adjudication as per law within three effective opportunities of hearing to the assessee.

Summary

Issues: Delay in filing appeal, Condonation of delay, Ex-parte order by CIT(A), Restoration of file for fresh adjudication

Delay in filing appeal:
The assessee's appeal for AY 2011-12 was directed against the CIT(A) - 5 Hyderabad's order dated 18/09/2019 passed in case No. 10341/2018-19/CIT(A)-5 involving proceedings u/s 143(3) rws 147 of the Income Tax Act, 1961. The appeal suffered from a 405 days delay in filing. The assessee filed a condonation petition citing the covid-19 pandemic as the reason for the delay. The Tribunal referred to case law to establish that delays supported by cogent reasons deserve to be condoned for substantial justice. The Tribunal found that the delay was not intentional or deliberate but due to circumstances beyond the assessee's control. Consequently, the case was taken up for adjudication on merits.

Condonation of delay:
The Tribunal, considering the delay in filing the appeal, relied on case law to support the condonation of the delay of 405 days. The Tribunal held that the delay was not intentional or deliberate but due to circumstances beyond the assessee's control, specifically citing the covid-19 pandemic as the reason for the delay. The Tribunal emphasized the importance of substantial justice in condoning such delays and proceeded to adjudicate the case on its merits.

Ex-parte order by CIT(A):
During the hearing, it was revealed that the CIT(A)'s lower appellate order had been passed ex-parte. The learned DR failed to rebut the fact that the CIT(A) had dismissed the appeal without discussing the issues on merits as required by the Act. The Tribunal found it appropriate to restore the file back to the CIT(A) for fresh adjudication in accordance with the law. The CIT(A) was directed to provide the assessee with three effective opportunities of hearing for the fresh adjudication process.

Restoration of file for fresh adjudication:
The Tribunal, upon discovering that the CIT(A)'s order was ex-parte and did not discuss the issues on merits, decided to restore the file back to the CIT(A) for fresh adjudication. The Tribunal directed the CIT(A) to conduct a fresh adjudication as per the law and provide the assessee with three effective opportunities of hearing. Ultimately, the assessee's appeal was allowed for statistical purposes in the mentioned terms, with the pronouncement made in the open court on 15th February 2021.