2023 (12) TMI 1443 - HC - Income Tax

Tax Appeal Reinstated: Procedural Defect Waived, Appellant Given Chance to Supplement Documentation and Seek Delay Condonation

SAVE A FAMILY PLAN (INDIA) Versus THE DEPUTY COMMISSIONER OF INCOME TAX (EXEMPTIONS) KOCHI

HC allowed tax appeal challenging ITAT's dismissal due to procedural defect. Court found no prejudice to respondent and directed appellant to file ... Seeking to condone the delay in filing the appeal before the Tribunal - HELD THAT:- There would be no prejudice caused to the respondent if there is a fresh consideration of the delay condonation application by the Tribunal, we deem it appropriate to dispose this Income Tax Appeal with the following directions: i. The appellant shall file the additional affidavit explaining the reasons for the delay occasioned in filing the appeal before the Tribunal within two weeks from today. ii. On receipt of the said affidavit, the Tribunal shall consider the application preferred by the appellant for condonation of delay in filing the appeal before the Tribunal within a further period of three weeks after hearing the appellant. iii. To enable the Tribunal to do so, we set aside the impugned order dated 03.07.2023 of the Tribunal. The Kerala High Court, in an Income Tax Appeal challenging the Income Tax Appellate Tribunal's (ITAT) order dated 03.07.2023 for AY 2014-2015, addressed the dismissal of the appellant's appeal due to non-filing of a 'cogent' affidavit supporting the delay condonation application. The ITAT had directed the appellant to file a better affidavit, which was not submitted, leading to dismissal of both the delay condonation application and the appeal.The appellant contended that the fresh affidavit was ready but could not be uploaded due to video conference difficulties. The Court, noting no prejudice to the respondent, allowed the appellant to file the additional affidavit within two weeks and directed the ITAT to reconsider the delay condonation application within three weeks after hearing the appellant. Accordingly, the High Court set aside the impugned ITAT order and disposed of the appeal without adjudicating the substantive questions of law.Key holdings:- Dismissal for failure to file a 'cogent' affidavit supporting delay condonation can be reconsidered if affidavit is subsequently filed.- The Court granted opportunity to cure procedural lapse to avoid prejudice.- The impugned order dated 03.07.2023 was set aside for fresh consideration by the Tribunal.