Condonation of prolonged delay and consistency support set-off of specified-business losses through rectification of an income-tax intimation

Delay attributable to advanced age, subsequent death, and a legal heir's late discovery of an adverse income-tax portal intimation is identified as relevant to condonation, particularly where the claim had been accepted for other assessment years. The notes further explain that the principle of consistency supports allowing set-off of unabsorbed losses from specified business against relevant income under Section 73A. The stated consequence is that dismissal on limitation should be set aside, with rectification of the Section 143(1) intimation and allowance of the set-off claim.

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Issues: Whether the appeal delay of 1070 days ought to have been condoned and whether the assessee was entitled to set off unabsorbed losses from specified business against the income declared for the relevant assessment year.

Analysis: The delay was attributable to the assessee's advanced age, subsequent death, and the legal heir's later discovery of the adverse intimation on the income-tax portal. The claim had been allowed for other assessment years, and the corresponding appeals for other years had ultimately succeeded. The dismissal of the appeal in limine therefore failed to account for the surrounding circumstances. Applying the principle of consistency, the Tribunal found that the claim for set-off under Section 73A was required to be allowed, and directed rectification of the intimation issued under Section 143(1).

Conclusion: The order dismissing the appeal on limitation was set aside, and the jurisdictional Assessing Officer was directed to rectify the intimation and allow the assessee's claim.

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