2019 (9) TMI 1260 - AT - Income Tax

Tribunal allows appeal delay, directs issues to be restored for adjudication.

The Tribunal decided to condone the delay in filing the appeal against the Order of the Commissioner of Income Tax (Appeals) for AY 2004-05. As the delay ... Condonation of delay - delay of 11½ years - on the basis of findings in the order for subsequent year, appeal was filed for earlier year before CIT(A) - HELD THAT:- It is admittedly only on account of the said finding that the assessee has filed the appeal as there is no other alternative remedy available to the assessee. This being so, as it is noticed that the delay issue is a technical issue and the delay is not on account of lethargy on the part of the assessee or on account of any malafide reasons. This being so, applying the principles laid down by the Hon’ble Supreme Court in the case of Collector, Land Acquisition vs. Mst.Katiji & Ors [1987 (2) TMI 61 - SUPREME COURT] the delay in filing of the appeal stands condoned. As the Ld.CIT(A) has not adjudicated the issues on merits, the issues in this appeal are restored to the file of the Ld.CIT(A) for adjudication on merits. Appeal filed by the assessee is partly allowed for statistical purposes. Issues:Delay in filing appeal against the Order of the Commissioner of Income Tax (Appeals) for AY 2004-05.Analysis:The appeal was filed by the assessee against the Order of the Commissioner of Income Tax (Appeals) for the AY 2004-05. The delay of 11 ½ years in filing the appeal was a crucial issue. The assessee's representative argued that the delay was due to the specific finding by the Tribunal in a previous order related to AY 2005-06. The Tribunal had stated that certain provisions could not have been applied by the Assessing Officer for AY 2004-05. Therefore, the assessee was compelled to file the appeal against the Assessment Order for AY 2004-05 based on this finding. The representative further cited the principle that substantial justice should prevail over technicality, as per the decision of the Hon'ble Supreme Court in the case of Collector, Land Acquisition vs. Mst.Katiji & Ors. The assessee requested the condonation of the delay and for the appeal to be heard on merits.In response, the Departmental Representative argued for finality in proceedings, stating that the Assessment Order for AY 2004-05 had already concluded, and the delay of nearly 11 ½ years should not be condoned.After considering the submissions, the Tribunal observed that the assessee's appeal for AY 2005-06 had been adjudicated by the Tribunal in a previous order. The Tribunal had made a reference to AY 2004-05 in that order, which influenced the assessee to file the appeal for AY 2004-05. The Tribunal noted that the delay was not due to any negligence or malafide intent on the part of the assessee. Citing the principles laid down by the Hon'ble Supreme Court, the Tribunal decided to condone the delay in filing the appeal. Since the Commissioner of Income Tax (Appeals) had not addressed the issues on merits, the Tribunal directed the issues in the appeal to be restored to the file of the Commissioner of Income Tax (Appeals) for adjudication on merits. Consequently, the appeal filed by the assessee was partly allowed for statistical purposes.The order was pronounced on 1st August 2019 in Chennai.