2023 (3) TMI 710 - AT - Income Tax

Delhi ITAT Condoned Appeal Delay Due to Lockdown & Custody, Remanded for Fresh Adjudication

The Appellate Tribunal ITAT DELHI addressed the delay in filing the appeal before the Tribunal and the merits of the case. The Tribunal condoned the delay ... Condonation of delay - Non-prosecution dismissal - Restoration and remand for fresh adjudication - Requirement of reasons for administrative action / cryptic order - Right to opportunity of hearingCondonation of delay - Reasonable cause - No willful default - Delay in filing the appeal to the Tribunal was condoned. - HELD THAT: - The assessee filed the appeal with a delay of 306 days and attributed the delay to custody in Tihar Jail from 10.02.2019 to 15.05.2020, release during the Covid-19 lockdown period, and lack of knowledge of the ex parte CIT(A) order uploaded on 22.10.2019 until consultation with his Chartered Accountant in September 2020. The Tribunal examined these circumstances and found that the assessee was prevented by reasonable cause and there was no willful default in prosecuting the appeal. On that basis the delay was held excusable and the appeal was admitted despite the delay. [Paras 3, 4]Delay condoned and the appeal admitted to be heard on merits.Restoration and remand for fresh adjudication - Non-prosecution dismissal - Requirement of reasons for administrative action / cryptic order - Right to opportunity of hearing - The matter was restored to the file of the CIT(A) for fresh adjudication after providing the assessee an opportunity of hearing. - HELD THAT: - The Tribunal observed that the CIT(A) had dismissed the appeal for non-prosecution and, on the merits, had simply sustained the Assessing Officer's order by a very cryptic order without proper reasoning. Having regard to the totality of facts and in the interests of justice, the Tribunal set aside the CIT(A)'s order and directed that the appeal be adjudicated afresh on merits after affording adequate opportunity to the assessee to be heard. The Tribunal also directed the assessee to cooperate and not to seek unnecessary adjournments. The grounds raised by the assessee were permitted to be placed on record for statistical purposes only pending fresh adjudication. [Paras 5]Order of the CIT(A) set aside; appeal restored to CIT(A) for fresh adjudication after hearing the assessee.Final Conclusion: The Tribunal condoned the delay in filing the appeal and set aside the CIT(A)'s cryptic non prosecution order, restoring the appeal to the CIT(A) for fresh adjudication on merits after affording the assessee an opportunity of hearing; the appeal is allowed for statistical purposes. Issues:1. Delay in filing the appeal before the Tribunal.2. Merits of the case - dismissal of the appeal for non-prosecution and sustaining the order of the Assessing Officer.Delay in filing the appeal before the Tribunal:The appeal was filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals) after a delay of 306 days. The delay was explained due to the assessee being in custody and sent to Central Jail, Tihar, from 10.02.2019 till 15.05.2020. The ex-parte order of the Ld. CIT (Appeals) was uploaded on the IT portal on 22.10.2019. The assessee was released during the Covid-19 lockdown and was unaware of the order until consulting a Chartered Accountant in September 2020. The delay was condoned by the Tribunal after finding reasonable cause for the delay and no willful default by the assessee.Merits of the case - dismissal of the appeal for non-prosecution and sustaining the order of the Assessing Officer:The Tribunal observed that the Ld. CIT (Appeals) had dismissed the appeal of the assessee for non-prosecution. On the merits, the Ld. CIT (Appeals) had simply sustained the order of the Assessing Officer without providing proper reasoning, resulting in a cryptic order. Considering the totality of facts and circumstances, the Tribunal decided to remand the appeal back to the Ld. CIT (Appeals) for fresh adjudication after hearing the assessee. The Ld. CIT (Appeals) was directed to provide adequate opportunity to the assessee and the assessee was instructed to cooperate without unnecessary adjournments. The grounds raised by the assessee were allowed for statistical purposes. Ultimately, the appeal of the assessee was allowed for statistical purposes.This judgment by the Appellate Tribunal ITAT DELHI addressed the issues of delay in filing the appeal before the Tribunal and the merits of the case concerning the dismissal of the appeal for non-prosecution and the sustaining of the Assessing Officer's order. The Tribunal condoned the delay in filing the appeal due to the reasonable cause of the assessee being in custody and the subsequent Covid-19 lockdown. On the merits, the Tribunal found the Ld. CIT (Appeals) had not provided adequate reasoning and remanded the appeal back for fresh adjudication after hearing the assessee. The appeal was allowed for statistical purposes, emphasizing the importance of fair and thorough adjudication in tax matters.