2019 (9) TMI 251 - AT - Income Tax

Condonation of delay - delay in filing the appeals before the CIT(A) - whether meritorious matter should not be thrown out on the ground of limitation and that substantial justice deserves to be preferred ? - HELD THAT - In this case, the assessee slept more than two years after the decision rendered and published in various journals, the delay of more than two years in filing the appeal cannot be acceptable by any court of law without reasonable cause. We find no reasonable cause, belatedly that too more than two years, in filing the appeals before the ld. CIT(A). We find no reason to interfere with the order passed by the ld. CIT(A). Thus, the ground raised by the assessee stands dismissed.

Summary

Issues:
Delay in filing appeals before the ld. CIT(A) for assessment years 2003-04 and 2004-05, condonation of delay, grounds for seeking condonation, rejection of condonation petition by ld. CIT(A), appeal before the Tribunal, consideration of delay period, legal principles for condonation of delay, dismissal of appeals.

Analysis:
The appeals were filed by the assessee against the common order of the ld. Commissioner of Income Tax (Appeals) for assessment years 2003-04 and 2004-05, with a delay of 9 days. The assessee sought condonation of the delay, supported by an affidavit. The delay was condoned by the Tribunal, and the appeals were admitted for adjudication. The assessment under section 143(3) of the Income Tax Act, 1961 was completed for both years, and the appeals were filed before the ld. CIT(A) with a delay of 777 days. The ld. CIT(A) dismissed the appeals, leading the assessee to appeal before the Tribunal, claiming the delay was due to lack of awareness regarding the eligibility for deduction post a specific Tribunal decision. The ld. CIT(A) rejected the condonation petition, citing the long delay and lack of reasonable cause for the delay. The Tribunal upheld the decision, emphasizing the unreasonable delay of more than two years in filing the appeals after the relevant Tribunal decision was available, leading to the dismissal of the appeals.

The Tribunal considered the facts, including the dates of assessment orders, service, and the due date for filing appeals. The Tribunal noted that the relevant Tribunal decision was available in 2006, but the appeals were filed only in 2008, causing a delay of 777 days. The Tribunal emphasized that a delay of more than two years without reasonable cause cannot be accepted, especially when the relevant decision was widely reported. The Tribunal found no reasonable cause for the belated filing of appeals and upheld the ld. CIT(A)'s decision to dismiss the appeals. Consequently, all the appeals filed by the assessee were dismissed by the Tribunal. The order was pronounced on 19th July 2019 at Chennai.