2020 (5) TMI 42 - AT - Income Tax

Condonation of delay for filing and appeal before CIT(A) - delay of 272 days - Sufficient and reasonable cause explained by the assessee - Earlier assessee had filed rectification application u/s 154 - HELD THAT - We considering the observations of MST Katiji others 1987 (2) TMI 61 - SUPREME COURT and submissions of the assessee, condone the delay of filing the appeal before the CIT (Appeals) and restore the entire disputed issues to the file of CIT (Appeals) to admit the appeal and adjudicate on merits and pass a speaking order. Further provide adequate opportunity of hearing to the assessee, and the assessee shall co-operate in submitting the information for early disposal of the appeal and allow the grounds of appeal of the assessee for statistical purpose.

Summary

Issues: Delay in filing appeal, Condonation of delay

Delay in filing appeal:
The assessee filed an appeal against the order of Commissioner of Income Tax (Appeals) under Section 154 and 250 of the Income Tax Act, 1961, raising grounds related to the non-admission of the appeal due to a delay in filing, which was not condoned. The case involved the receipt of the order under Section 154, the subsequent filing of an appeal with a delay of 272 days, and the dismissal of the appeal by the CIT (Appeals) without condoning the delay. The assessee argued that the appeal was filed within the time limit based on the date of receipt of the order under Section 154, while the CIT (Appeals) focused on the issue of the receipt of the order of TPO. The Tribunal considered the submissions and evidence presented by both parties regarding the delay in filing the appeal.

Condonation of delay:
The Tribunal, after hearing the rival submissions and perusing the material on record, found that the CIT (Appeals) did not condone the delay of 272 days in filing the appeal due to the lack of sufficient and reasonable cause explained by the assessee. Referring to the decision of the Hon'ble Apex Court in the case of Collector Land Acquisition Vs. MST Katiji & others, the Tribunal emphasized the need for substantial justice and the application of the law in a manner that serves the ends of justice. The Tribunal considered the elastic nature of the expression "sufficient cause" and the importance of ensuring equal treatment to all litigants, including the State. In light of the submissions made by the assessee and the principles laid down by the Apex Court, the Tribunal decided to condone the delay in filing the appeal before the CIT (Appeals) and directed the entire disputed issues to be restored to the file of CIT (Appeals) for adjudication on merits. The Tribunal also instructed the CIT (Appeals) to provide adequate opportunity of hearing to the assessee for early disposal of the appeal.

Conclusion:
The appeal of the assessee was allowed for statistical purposes, and the Tribunal's order was pronounced in the open court on 27.02.2020.