2018 (3) TMI 1302 - AT - Income Tax

Condonation of delay in filing appeal before CIT(A) - ignorance of law by the Chartered Accountant - allowability of loss - section 94(7) of the I.T. Act - Held that - there is an inordinate delay in filing the appeals before the Ld. CIT(A) without justification and as such, prejudice have been caused to the Revenue Department - Further, no sufficient cause have been disclosed in the explanation of assessee-company. Therefore, the Ld. CIT(A), correctly dismissed the appeals of the assessee-company by holding them to be time barred - appeal dismissed - decided against appellant.

Summary

Issues:
- Appeals against orders of Ld. CIT(A) dismissed as time-barred due to delay in filing.
- Contention of the Assessee regarding condonation of delay.
- Revenue's argument supporting the dismissal of appeals.

Analysis:
1. Delay in Filing Appeals:
- The appeals by the assessee-company were against orders of Ld. CIT(A) for A.Ys. 2005-2006 and 2008-2009, challenging disallowances under section 94(7) of the I.T. Act.
- The A.O. passed assessment orders in 2007 and 2010, and the assessee agreed to the disallowances without penalty.
- The appeals were filed after 8 and 4 years respectively, claiming ignorance of law as the reason for delay.
- The Ld. CIT(A) found no sufficient cause for the delay, noting the assessee's failure to provide justifications for the late appeals.
- Judicial precedents were cited to emphasize the importance of valid reasons for condoning delays in filing appeals.

2. Contention for Condonation of Delay:
- Assessee contended that the delay was due to the Chartered Accountant's ignorance of law, later advised by an Advocate that the amount was not taxable.
- However, the Tribunal observed that the appeals were not maintainable as the assessee had agreed to the additions earlier, and no valid reason was presented for the delay.

3. Revenue's Argument:
- The Revenue supported the dismissal of appeals, asserting that no valid cause was disclosed for condonation of delay.
- Emphasized that the delay prejudiced the Revenue Department, and the assessee failed to provide sufficient reasons for the delay.

4. Judicial Pronouncements and Decision:
- The Tribunal relied on various court decisions to highlight the need for valid reasons when seeking condonation of delay.
- Noting the substantial delay in filing the appeals without proper justification, the Tribunal upheld the Ld. CIT(A)'s decision to dismiss the appeals as time-barred.
- Concluded that no interference was warranted, and both appeals of the assessee-company were dismissed.

This comprehensive analysis outlines the key issues, arguments presented by both parties, the Tribunal's decision based on legal principles, and the reasons for dismissing the appeals as time-barred due to unjustified delays in filing.