2024 (8) TMI 344 - AT - Income Tax

Tribunal Allows Delayed Appeal Due to Exceptional Circumstances; Remands for Adjudication Ensuring Due Process.

Mukhtiyarodin Ajimodin Malek Versus Income Tax Officer, Ward – 3 (4), Petlad.

The Tribunal condoned the delay in filing the appeal, despite its substantial length, due to exceptional circumstances, including the negligence of the ... Delay in filing the appeal before the CIT(A) - negligence of previous CA leading to delay - HELD THAT:- As it appears that the fault was on the part of the earlier CA who has been engaged by the assessee and due to the negligence of earlier CA the assessee suffered. But from the perusal of the records, it appears that when the assessee came to the knowledge of the order with the help of subsequent CA, the assessee within 15 days has filed the appeal before the CIT(A). Due to Pandemic, the subsequent CA expired and that is why the assessee’s delay condonation application was filed later. CIT(A) who has taken this aspect for condoning the delay. Though the delay is exorbitant the peculiar facts and circumstances which is exceptional in nature in the present case cannot be treated as contrary to the assessee’s right to contest the appeal on merit. Therefore, in the interest of justice, it will be appropriate to condone the delay in filing the appeal before the CIT(A). CIT(A) will decide the matter on merit as per due process of law. Appeal of the assessee is partly allowed for statistical purpose. Issues Involved:Delay condonation in filing appeal before CIT(A) and dismissal of appeal without considering merits, assessment order under Section 144 read with Section 263 of the Income Tax Act, 1961, negligence of previous CA leading to delay, request for remand of the matter for proper adjudication of issues on merit.Analysis:The appeal was filed against an order by the CIT(A), National Faceless Appeal Centre, for the Assessment Year 2008-09. The assessee raised grounds related to delay condonation, dismissal of appeal without considering merits, and non-adjudication of certain grounds regarding income determination. The assessment process involved multiple orders under different sections, ultimately assessing gross receipts instead of income. The appeal was filed after an ex-parte order was passed, leading to the dismissal by CIT(A).During the proceedings, it was revealed that the assessee was unaware of the orders passed due to the negligence of the previous CA. The delay in filing the appeal was attributed to this negligence, with the subsequent CA informing the assessee about the orders. The delay condonation application was filed due to the subsequent CA's unfortunate demise during the Covid pandemic. The assessee requested the delay be condoned and the matter remanded for proper adjudication on merit.The delay was opposed by the Revenue, citing its exorbitant nature. However, the Tribunal considered the peculiar circumstances, acknowledging the fault of the earlier CA and the subsequent CA's untimely demise. Despite the exorbitant delay, the Tribunal decided to condone it in the interest of justice, allowing the appeal to be partly allowed for statistical purposes. The CIT(A) was directed to decide the matter on merit following due process and ensuring the assessee's right to contest the appeal.In conclusion, the Tribunal recognized the exceptional circumstances leading to the delay in filing the appeal and decided to condone it to uphold the assessee's right to contest the appeal on merit. The matter was remanded back to the CIT(A) for proper adjudication, emphasizing the importance of following due process and principles of natural justice.