2024 (4) TMI 984 - AT - Income Tax

Condonation of delay - Delay in filling of an appeal before ITAT - appeal is delayed by 17 days - sufficient and reasonable cause for delay or not? - absence of a bonafide explanation - though the assessee had deposited the fees for filing the appeal before the Tribunal on 27.01.2024 but had kept the filing of the subject appeal in abeyance till 20.02.2024. The assessee has filed an affidavit wherein he had stated that as he was taken unwell on 30.01.2024, therefore, he could file the appeal only on 20.02.2024. HELD THAT - Though the delay in filing the appeal may not be inordinate, it is the absence of a bonafide explanation of the assessee regarding the reasons that had resulted to delay in filing the appeal; read in the backdrop of his conduct before both the lower authorities, i.e the A.O and CIT(Appeals), who due to non-prosecution of the matter by the assessee before them were constrained to pass ex-parte orders, that we are of firm conviction that the delay in the filing of the present appeal by the assessee does not merit to be condoned. In case, if the delay is condoned based on an unsubstantiated claim in the case of the present assessee who had not even participated in the proceedings before the A.O. and the CIT(Appeals), then, it would send a wrong message and would lay down a wrong precedent for others to follow. Thus we are unable to persuade myself to condone the delay involved in the filing of the present appeal by the assessee appellant, who as observed by me hereinabove had consistently as a matter of habit evaded his participation in the proceedings before both the lower authorities and also delayed the filing of the present appeal without any justifiable reason. Thus we decline to condone the delay involved in filing of the appeal before ITAT. Appeal filed by the assessee is dismissed.

Summary

Issues Involved:
1. Application of stamp duty value u/s 50C.
2. Denial of exemption u/s 54.
3. Condonation of delay in filing the appeal.

Summary:

Issue 1: Application of Stamp Duty Value u/s 50C
The assessee contested the application of the stamp duty value of Rs. 16,73,300 for the land sold on 17-02-2014, arguing that the actual sale consideration was Rs. 5,50,000. The assessee sought a referral to the Departmental Valuation Officer to determine the fair market value. The A.O. had adopted the stamp valuation authority's rate for determining the capital gains, which was upheld by the CIT(Appeals).

Issue 2: Denial of Exemption u/s 54
The assessee claimed an exemption of Rs. 34,01,042 u/s 54 for investment in a new residential house, which was denied by the A.O. The CIT(Appeals) upheld this denial due to the assessee's non-participation in the proceedings.

Issue 3: Condonation of Delay in Filing the Appeal
The appeal was delayed by 17 days. The assessee attributed the delay to illness, supported by an affidavit. The Revenue opposed the condonation, citing the assessee's consistent non-compliance and lackadaisical approach. The Tribunal found the reasons unconvincing and noted the assessee's habitual non-participation in proceedings, thus declining to condone the delay.

Conclusion:
The Tribunal dismissed the appeal, emphasizing the assessee's failure to provide a bona fide explanation for the delay and his repeated non-cooperation with the lower authorities. The Tribunal highlighted that condoning the delay without substantial justification would set a wrong precedent, referencing similar judgments by the Hon'ble High Court of Chhattisgarh. The order was pronounced on 23rd April 2024.