Director's UK detention and COVID-19 delays justify 33-month appeal delay condonation under sections 144 and 147

ITAT Mumbai allowed condonation of delay in filing appeal before CIT(A) despite 33-month delay. Assessment order was passed ex-parte under sections 144 and 147. Assessee's director was detained in UK from March 2018 to October 2021, preventing appeal filing. Though one-year gap existed after director's return before filing appeal in December 2022, ITAT considered genuine circumstances including COVID-19 exclusion period declared by SC. CIT(A) had dismissed appeal in limine without merit consideration. ITAT set aside CIT(A)'s order and remanded for merit-based decision, directing deposit of Rs. 51,000 in PMNRF within 30 days, emphasizing substantial justice requires proper adjudication.

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Issues involved:
The issues involved in the judgment are the confirmation of assessment order and imposition of penalty under section 271(1)(c) of the Income-tax Act, 1961 for the A.Y. 2012-13.

Confirmation of Assessment Order:
The Assessee appealed against the assessment order dated 27/12/2019 passed under section 144 read with section 147 of the Act. The Assessee failed to establish reasonable cause for the delay in filing the appeal before the Ld. Commissioner. The Assessee claimed that the delay was due to the detention of the main Director/shareholder in the United Kingdom from March 2018 to October 2021. The Assessee filed an appeal electronically on 22/12/2022 along with an application for condonation of delay. The Tribunal considered the peculiar facts and circumstances, including the impact of Covid-19, and set aside the ex-parte order, remanding the case to the Ld. Commissioner for decision on merit, subject to depositing Rs. 51,000/- in the Prime Minister's National Relief Fund within 30 days.

Imposition of Penalty:
The penalty was imposed based on the assessment order dated 27/12/2019, which was appealed by the Assessee. As the assessment order was set aside and remanded for fresh decision in the confirmation of assessment order issue, the penalty order was also set aside. The case was remanded to the Ld. Commissioner for reconsideration, subject to the same condition of depositing Rs. 51,000/- in the Prime Minister's National Relief Fund within 30 days. The Assessee was directed to be afforded a reasonable opportunity, with a warning that further default would not entitle them to any leniency.

Conclusion:
Both appeals filed by the Assessee were allowed in the specified terms for statistical purposes. The order was pronounced in the open court on 22/11/2023.

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