2020 (5) TMI 42 - AT - Income Tax

Tribunal allows appeal, condones delay, emphasizes substantial justice. Remanded for adjudication.

M/s. Walvoil Fluid Power India Pvt. Ltd. Versus Dy. Commissioner of Income Tax, Transfer Pricing 2 (2) (2), Bangalore.

M/s. Walvoil Fluid Power India Pvt. Ltd. Versus Dy. Commissioner of Income Tax, Transfer Pricing 2 (2) (2), Bangalore. - TMI Issues: Delay in filing appeal, Condonation of delayDelay in filing appeal:The assessee filed an appeal against the order of Commissioner of Income Tax (Appeals) under Section 154 and 250 of the Income Tax Act, 1961, raising grounds related to the non-admission of the appeal due to a delay in filing, which was not condoned. The case involved the receipt of the order under Section 154, the subsequent filing of an appeal with a delay of 272 days, and the dismissal of the appeal by the CIT (Appeals) without condoning the delay. The assessee argued that the appeal was filed within the time limit based on the date of receipt of the order under Section 154, while the CIT (Appeals) focused on the issue of the receipt of the order of TPO. The Tribunal considered the submissions and evidence presented by both parties regarding the delay in filing the appeal.Condonation of delay:The Tribunal, after hearing the rival submissions and perusing the material on record, found that the CIT (Appeals) did not condone the delay of 272 days in filing the appeal due to the lack of sufficient and reasonable cause explained by the assessee. Referring to the decision of the Hon'ble Apex Court in the case of Collector Land Acquisition Vs. MST Katiji & others, the Tribunal emphasized the need for substantial justice and the application of the law in a manner that serves the ends of justice. The Tribunal considered the elastic nature of the expression 'sufficient cause' and the importance of ensuring equal treatment to all litigants, including the State. In light of the submissions made by the assessee and the principles laid down by the Apex Court, the Tribunal decided to condone the delay in filing the appeal before the CIT (Appeals) and directed the entire disputed issues to be restored to the file of CIT (Appeals) for adjudication on merits. The Tribunal also instructed the CIT (Appeals) to provide adequate opportunity of hearing to the assessee for early disposal of the appeal.Conclusion:The appeal of the assessee was allowed for statistical purposes, and the Tribunal's order was pronounced in the open court on 27.02.2020.