2021 (1) TMI 169 - HC - Income Tax

Condonation of delay - Whether the ITAT is legally justified in rejecting application for condonation of delay of 92 days in filing appeal under section 253 ? - HELD THAT - On 13th May, 2019, this Court had directed the appellant to place on record the application for condonation of delay filed before the ITAT. Despite several adjournments and lapse of nineteen months, the said application for condonation of delay has not been filed. As appellant, states that he has made repeated efforts, by writing as many as eight communications to the Assessing Officer as well as to the ITO Headquarters, to place on record the application for condonation of delay. He states that he is being repeatedly told that they are working on the same. This Court is of the view that despite observations by the ITAT against the Assessing Officer, nothing has changed at the ground level as the application for condonation of delay filed before the Tribunal has not been placed on record till date. Accordingly, the present appeal is dismissed in default and on account of non-prosecution.

Summary

Issues:
Challenge to ITAT order on ground of limitation, Observations against conduct of Assessing Officer, Rejection of application for condonation of delay by ITAT, Failure to file application for condonation of delay before High Court, Dismissal of appeal in default and non-prosecution.

Analysis:
The High Court heard an appeal challenging the ITAT order dated 20th April, 2018, which dismissed the appellant's appeal due to limitation. The ITAT made observations against the conduct of the Assessing Officer, highlighting negligence in not filing the Remand Report and failing to take necessary actions. The ITAT also noted the lack of sufficient cause for the delay in filing the appeal, leading to the dismissal of the Revenue's appeal as time-barred. The question of law proposed by the revenue pertained to the rejection of the application for condonation of delay in filing the appeal under section 253 of the Act. Despite directions from the Court to file the application for condonation of delay, the appellant failed to do so even after several adjournments and nineteen months. The appellant's counsel made efforts to obtain the application but faced delays from the Assessing Officer and ITO Headquarters. The Court observed that despite ITAT's remarks, no progress was made in filing the application for condonation of delay before the Tribunal. Consequently, the Court dismissed the present appeal due to default and non-prosecution, ordering the upload of the order on the website and forwarding a copy to the counsel via email.