Tribunal allows appeals due to delay, cancels late fees, emphasizes preventing unnecessary litigation

The Tribunal allowed all appeals, condoning the delay in filing appeals before CIT(A) due to lack of mala fide intention and deciding to adjudicate on merit. Late fees under section 234E of the Act were canceled based on a Kerala High Court decision favoring the appellant over the CIT(A)'s confirmation. The Tribunal stressed following decisions favoring the assessee in case of conflicting High Court opinions, aiming to prevent unnecessary litigation and delays in the legal system.

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Issues involved:
1. Condonation of delay in filing appeals before CIT(A).
2. Imposition of late fees under section 234E of the Act.

Analysis:

Issue 1: Condonation of delay in filing appeals before CIT(A):
The appellant filed appeals before the CIT(A) with a delay of 2414 days, attributing the delay to being a semi-government school unaware of technicalities. The lower authorities did not condone the delay, leading to the dismissal of the appeals. The appellant argued that the delay should be condoned as the issue was covered in their favor by tribunal and High Court decisions. The Revenue acknowledged the issue being in favor of the appellant but insisted on dismissing the appeals due to the delay. The Tribunal referred to the Supreme Court's stance on condonation of delay, emphasizing a justice-oriented approach over technicalities. Not finding any mala fide intention behind the delay, the Tribunal decided to condone the delay and adjudicate the appeals on merit to avoid unnecessary litigation and delays in the legal system.

Issue 2: Imposition of late fees under section 234E of the Act:
The common issue in the appeals was the imposition of late fees under section 234E of the Act, with reference to an enabling clause inserted in section 200A. The CIT(A) confirmed the late fees based on a Gujarat High Court decision. The Tribunal examined the enabling provision and previous decisions, including one by a Co-ordinated bench of ITAT Agra. The Tribunal disagreed with the CIT(A)'s interpretation, citing a Kerala High Court decision favoring the appellant. Following the precedent set by the Kerala High Court, the Tribunal reversed the CIT(A)'s orders and canceled the late fees imposed under section 234E of the Act.

In conclusion, the Tribunal allowed all the appeals, emphasizing the importance of following decisions favoring the assessee when there is a difference of opinion among High Courts. The orders were pronounced in open court on 22/03/2022.

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