ITAT Bangalore allows appeal for statistical purposes despite withdrawal of revision petition

The ITAT, Bangalore, allowed the appeal filed by the assessee for statistical purposes. The appeal before CIT (A) was deemed maintainable despite the withdrawal of the revision petition u/s. 264, following a judgment of the Hon'ble Madras High Court. The delay of 331 days in filing the appeal was condoned by the ITAT, citing the assessee's explanation and the Madras High Court's precedent. The matter was remanded to the CIT (A) for consideration on the merits of the appeal.

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Issues:
1. Maintainability of appeal before CIT (A) after withdrawal of revision petition u/s. 264
2. Condonation of delay in filing appeal before CIT (A)

Analysis:
1. Maintainability of appeal before CIT (A) after withdrawal of revision petition u/s. 264:
The assessee filed an appeal against the order of ld. CIT (A)-7, Bangalore for Assessment Year 2011-12. The contention was that since the assessee opted for a revision petition u/s. 264 of the IT Act before the CIT, the right to file an appeal was waived. However, the assessee argued that as per a judgment of the Hon'ble Madras High Court, the filing of a revision petition does not bar the filing of an appeal. The ITAT, Bangalore, decided in favor of the assessee, citing the Madras High Court judgment, allowing the appeal before the CIT (A) after withdrawal of the revision petition.

2. Condonation of delay in filing appeal before CIT (A):
The delay in filing the appeal before the CIT (A) was 331 days, which the CIT (A) considered an extraordinary delay. The assessee was required to explain the reason for the delay on a day-to-day basis. The assessee argued that the delay was due to pursuing an alternative remedy available under the law, which was considered a bonafide action. Citing the judgment of the Hon'ble Madras High Court, the ITAT held that the delay was explained by the assessee and should be condoned. The matter was restored back to the file of CIT (A) for a decision on the merit of the appeal.

In conclusion, the ITAT, Bangalore, allowed the appeal filed by the assessee for statistical purposes, based on the maintainability of the appeal before CIT (A) after withdrawal of the revision petition u/s. 264 and the condonation of delay in filing the appeal before CIT (A).

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