2021 (4) TMI 194 - AT - Income Tax

Condonation of delay - delay of 1189 days in filing the appeal against quantum order passed by the ld. CIT(A) and there is a delay of 307 days in filing the appeal against the order confirming penalty imposed by the AO u/s 271(1)(c) - benefit of the provisions of Vivad Se Viswas Act - HELD THAT - Since the assessee had closed its business operations the assessee could not receive the order passed by the Ld. CIT(A). The department has not rebutted these fats. Further, the assessee could not file the appeals within limitation period as the partner of the assessee had to undergo medical treatment due to his ill health. In the present cases, although the delay is inordinate, yet, in view of the fact that the assessee wants to avail the benefit of the provisions of Vivad Se Viswas Act, 2020 and the assessee has explained the cause of delay in filing the present appeals, we are of the considered view that no prejudice is going to be caused to the revenue in case the delay is condoned in both the cases. Accordingly, in view of the principles laid down by the Hon'ble Supreme Court in the case of Collector, Land Acquisition vs Mst. Katiji Ors 1987 (2) TMI 61 - SUPREME COURT we take a lenient view and allow the applications for condonation delay and dismiss both the cases of the assessee as withdrawn with the liberty to file M. As. for restoration of the appeals in case the issues involved are not settled under the provisions of Vivad Se Visvas Act, 2020.

Summary

Issues:
1. Delay in filing appeals against assessment order and penalty order.
2. Condonation of delay under Vivad Se Vishwas Scheme, 2020.
3. Justification for delay due to medical reasons and closure of business operations.
4. Application of principles for condonation of delay as per legal precedents.
5. Decision on condonation of delay and dismissal of appeals.

Analysis:
1. The appellant filed appeals against the assessment order and penalty order passed by the Commissioner of Income Tax (Appeals). The first order partly allowed the appeal against the assessment order under sections 144 and 143(3) of the Income Tax Act, while the second order dismissed the appeal against the penalty order under section 271(1)(c) of the Act.

2. The appellant sought to opt for the Vivad Se Vishwas Scheme, 2020, but faced delays in filing the appeals. The appellant cited Circular No. 21/2020 issued by the CBDT, stating eligibility upon condonation of delay by the competent authority.

3. The appellant explained the delays of 1189 days in filing the appeal against the quantum order and 307 days against the penalty order. The delay was attributed to the closure of business operations and medical treatment of a partner. The appellant, a partnership firm with a contract to run a Chemist Shop in PGI Chandigarh, faced challenges in receiving the appellate order due to business closure and partner's health issues.

4. The legal representatives presented arguments based on the principles of condonation of delay as outlined in the case law of Collector, Land Acquisition vs Mst. Katiji & Ors (1987). These principles emphasized the importance of substantial justice over technical considerations and the need for a pragmatic approach in assessing delay.

5. After considering submissions from both sides, the Tribunal acknowledged the inordinate delay but noted the appellant's intention to avail benefits under the Vivad Se Vishwas Act, 2020. Following the principles laid down by the Supreme Court, the Tribunal took a lenient view and allowed the condonation of delay. The appeals were dismissed with the liberty to file for restoration if issues remain unresolved under the Vivad Se Vishwas Act, 2020.