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2024 (7) TMI 21 - AT - Income TaxIssues involved: 1. Condonation of delay in filing the appeal due to Covid-19 Pandemic. 2. Whether delay in filing the appeal should be condoned. 3. Setting aside the order passed by the Principal Commissioner of Income Tax (PCIT) under section 263 of the Income Tax Act. Analysis: Issue 1: Condonation of delay in filing the appeal due to Covid-19 Pandemic The appellant filed an appeal challenging the order passed by the PCIT under section 263 of the Income Tax Act. The appeal was delayed by 1740 days, but the appellant sought condonation, arguing that the effective delay was only 1100 days if the Covid-19 Pandemic period was excluded. The appellant submitted an affidavit explaining the reasons for the delay, including the belief that the order was not appealable initially. The Tribunal considered the Supreme Court's direction to exclude the Covid-19 period and ultimately found merit in condoning the delay, citing a similar case where delay was condoned due to a bona fide belief. Issue 2: Whether delay in filing the appeal should be condoned The appellant's counsel argued that the delay should be condoned due to the mistake made by the income tax practitioner in not advising the appellant to file the appeal. The counsel contended that the reasons provided in the affidavit constituted sufficient cause for the delay and should be considered in the interest of justice. The Tribunal agreed, emphasizing that the power to condone delay is discretionary and should be exercised judiciously. Legal precedents were cited to support the argument that an honest mistake, whether by an advocate or a party, could be grounds for condonation of delay. Issue 3: Setting aside the order passed by the PCIT under section 263 The appellant also challenged the order passed by the PCIT, arguing that it was ex parte and violated the principles of natural justice. The Tribunal acknowledged that the appellant was not given a sufficient opportunity to be heard before the PCIT and decided to set aside the order, remitting the matter back to the PCIT for fresh adjudication on merits. The appeal was treated as allowed for statistical purposes. In conclusion, the Tribunal allowed the appeal, setting aside the PCIT's order and remitting the matter back for fresh adjudication. The delay in filing the appeal was condoned, considering the reasons provided and legal precedents supporting the condonation of delay due to honest mistakes. The decision was pronounced on 22/01/2024 in the open court.
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