Tribunal Restores Delayed Appeal, Citing Communication Gap and Pandemic Disruptions; Emphasizes Justice Over Procedure.

The ITAT condoned a 1528-day delay in filing a quantum appeal, attributing it to a communication gap with the auditor and pandemic-related disruptions. The Tribunal emphasized substantial justice over procedural technicalities, restoring the appeal to the CIT(A) for a merits-based decision. Additionally, the penalty appeal under section 271(1)(c) was reinstated for concurrent disposal with the quantum appeal, ensuring a thorough examination of both matters. The appeals were allowed for statistical purposes, facilitating a fair review in line with the Income Tax Act provisions.

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Issues Involved:
- Condonation of delay in filing the quantum appeal
- Justification for delay due to communication gap with auditor
- Consideration of pandemic-related delays
- Restoring the appeal to the file of the learned CIT(A)
- Disposal of penalty appeal along with the quantum appeal

Condonation of Delay in Filing the Quantum Appeal:
The assessee appealed against orders passed by the Commissioner of Income Tax (Appeals)- National Faceless Appeal Centre. The delay of 1528 days in filing the appeal was not condoned by the learned CIT(A), citing insufficient reasons. The assessee's argument focused on the communication gap with the auditor, leading to the delay. The learned AR emphasized that the delay was not intentional but due to the professional preoccupations of the auditor. The delay was attributed to the pandemic and the belief that the appeal would be filed in due course. The Tribunal noted that the delay was abnormal but found the reasons provided by the assessee plausible, considering the circumstances. The Tribunal granted an opportunity to the assessee to prosecute the appeal by condoning the delay, emphasizing the delivery of substantial justice over technicalities.

Justification for Delay Due to Communication Gap with Auditor:
The delay in filing the appeal was explained by the assessee as arising from a communication gap with the auditor. The assessee approached the auditor immediately upon receiving the order, but due to the auditor's preoccupations, the appeal could not be filed promptly. The Tribunal considered the reasons furnished by the assessee and the circumstances surrounding the delay, including the impact of the pandemic. The Tribunal accepted the explanation provided by the assessee, highlighting the importance of granting an opportunity to effectively prosecute the appeal.

Consideration of Pandemic-Related Delays:
The pandemic-induced delay in filing the appeal was a significant factor in the case. The Tribunal acknowledged that the pandemic had affected the timely filing of appeals and considered the impact of the lockdown on the assessee's ability to pursue the appeal promptly. Despite the delay of 1528 days, the Tribunal found the reasons presented by the assessee valid, particularly in light of the extraordinary circumstances caused by the pandemic. The Tribunal emphasized the need to balance technicalities with substantial justice, leading to the decision to condone the delay and restore the appeal.

Restoring the Appeal to the File of the Learned CIT(A):
The Tribunal set aside the impugned order and restored the appeal to the file of the learned CIT(A) for a decision on merits. The Tribunal directed the assessee to cooperate without seeking adjournments, emphasizing the importance of a fresh review by the learned CIT(A) to ensure a fair hearing. By restoring the appeal, the Tribunal aimed to facilitate a comprehensive consideration of the case in compliance with the provisions of the Income Tax Act.

Disposal of Penalty Appeal Along with the Quantum Appeal:
The Tribunal also addressed the appeal against the penalty levied under section 271(1)(c) of the Act. The order of the learned CIT(A) dismissing the penalty appeal for non-prosecution was set aside, as it did not comply with the Act's provisions. Given the restoration of the quantum appeal, the penalty appeal was also restored to the file of the learned CIT(A) to be disposed of along with the quantum appeal. Ultimately, the appeals of the assessee were treated as allowed for statistical purposes, ensuring a comprehensive review of both issues.

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