Assessee's 988-day delay in filing appeal against section 263 revision order not condoned due to insufficient explanation

The ITAT Hyderabad dismissed the assessee's appeal for condonation of delay in filing an appeal against a revision order under section 263. The appeal was filed 988 days late. The assessee claimed staff failed to notice the email order and learned of the non-filing only after receiving a tax arrears reminder. The tribunal found the explanation insufficient, noting that 10 months elapsed between the revisional order (28.02.2019) and the consequential order (31.12.2019), yet the assessee failed to act. The tribunal emphasized that law requires vigilance in prosecuting rights under the Act.

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Issues:
1. Challenge to order passed by Principal Commissioner of Income Tax under section 263 of the Income Tax Act, 1961 for AY 2014-15.
2. Delay in filing the appeal before the Tribunal and condonation of the same.

Issue 1: Challenge to order under section 263:
The appeal was filed by the assessee against the order passed by the Principal Commissioner of Income Tax under section 263 of the Income Tax Act, 1961 for AY 2014-15. The Principal Commissioner found that the Assessing Officer had not properly examined the issue of large share premium received during the relevant year and other discrepancies. Consequently, the assessment order passed by the Assessing Officer was deemed erroneous and prejudicial to the interest of revenue. The Principal Commissioner set aside the assessment order and revised it under section 263. The assessee challenged this decision before the Tribunal, arguing that the assessment made under section 143(3) should not have been quashed.

Issue 2: Delay in filing the appeal and condonation:
The assessee sought condonation for a delay of 988 days in filing the appeal before the Tribunal. The Director of the assessee company explained that due to reduced administrative staff and lack of day-to-day management activities after April 2018, the email communication regarding the order was not noticed promptly. The delay was discovered only when reminded by auditors about tax arrears. The Tribunal, after considering the reasons provided by the assessee, found them not bona fide. The Tribunal highlighted the importance of timely filing of appeals and the need for reasonable cause for condonation. The Tribunal concluded that the reasons given by the assessee for the delay were vague and lacked merit, leading to the dismissal of the appeal due to being time-barred.

In conclusion, the Tribunal dismissed the appeal of the assessee challenging the order passed by the Principal Commissioner under section 263. The delay in filing the appeal was not condoned due to reasons deemed not bona fide, emphasizing the significance of adhering to timelines in legal proceedings.

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