Assessee's Appeal Dismissed Due to Delay in Filing
M/s. Forbes & Co. (Tea Brokers) Versus The Assistant Commissioner of Income Tax
M/s. Forbes & Co. (Tea Brokers) Versus The Assistant Commissioner of Income Tax - TMI
Issues:1. Delay in filing the appeal before the Tribunal.
Analysis:The appeal was filed by the assessee against the revision order passed under Section 263 of the Income-tax Act, 1961, by the Commissioner of Income Tax-II at Coimbatore. The assessee, a partnership firm, had filed its return of income for a loss of Rs. 21,72,514. The Commissioner of Income Tax found the assessment order to be erroneous and prejudicial to the interests of Revenue, leading to the revision of the assessment order under Section 263. The Commissioner set aside the assessment order and directed the Assessing Officer to pass a fresh assessment order after considering specific observations and directions. The delay in filing the appeal was 567 days, and the assessee submitted an affidavit explaining the reasons for the delay.
The reasons provided by the assessee for the delay included the misplacement of the revision order by their Accountant, which was only discovered during the rearrangement of old records in December 2013. The Tribunal raised concerns regarding the plausibility of the explanation, questioning why only the revision order was misplaced by the Accountant and whether the Directors were not in touch with the Coonoor office for over 1-1/2 years. The Tribunal observed that the appeal was filed promptly after receiving the revised assessment order, raising doubts about the diligence of the assessee in filing the appeal in a timely manner.
The Tribunal noted that the speed at which the appeal was filed after discovering the revision order was inexplicable, given the holiday period and the immediate filing of the appeal within 24 hours. While acknowledging the importance of considering delay condonation sympathetically, the Tribunal emphasized the need for a reasonable explanation for the delay. As the Tribunal was not satisfied with the reasons provided by the assessee, the delay of 567 days was not condoned, and the appeal was dismissed on the ground of limitation. However, the Tribunal clarified that the assessee still had the right to file an appeal against the revised assessment order before the appropriate authorities.
In conclusion, the appeal filed by the assessee was dismissed due to the delay in filing, which was not satisfactorily explained. The Tribunal emphasized the importance of diligence in filing appeals within the prescribed timelines and highlighted that the assessee could still pursue remedies against the revised assessment order through the appropriate channels.