Charitable Trust Wins Appeal Delay: Tribunal Reconsiders Tax Order, Urges Quick Action on Pending Application.

The ITAT condoned the delay in filing the appeal by the assessee, a charitable trust, against the order under section 250 of the Income Tax Act for Assessment Year 2019-20. The Tribunal set aside the order of the CIT(A) and restored the case for reconsideration, directing the CIT(A) to address the pending section 154 application promptly. The appeal was allowed for statistical purposes, providing the appellant an opportunity to present the case again.

---

---

Issues:
Appeal against order passed under section 250 of the Income Tax Act for Assessment Year 2019-20 dismissed due to delay in filing - Whether sufficient cause for condonation of delay exists.

Analysis:
The appeal was filed by the assessee against an order passed under section 250 of the Income Tax Act for the Assessment Year 2019-20. The appellant, a charitable trust engaged in educational activities, had filed a return of income showing total income as 'NIL'. However, the claim for deduction under section 11 of the Act was not allowed, resulting in the inclusion of a receipt of Rs. 20,96,936 in the total income. The appeal was dismissed by the ld. Commissioner of Income-tax (Appeals)-1, Jaipur, citing a delay in filing the appeal without sufficient cause for condonation of delay. The appellant contended that they had filed an application for rectification under section 154 of the Act and believed they could only appeal after its decision. The delay in filing the appeal was unintentional and bona fide according to the appellant's counsel.

Upon reviewing the impugned order, it was noted that the appeal was filed after a considerable delay from the date of the original order. The appellant had submitted an affidavit regarding the pending application under section 154 of the Act, stating that the delay was due to a bona fide mistake. The Departmental Representative (D/R) confirmed that the rectification petition for the relevant assessment year had not been disposed of. Considering these facts, the Tribunal found that the delay in filing the appeal should be condoned, and the case should be decided on its merits. The order of the ld. Commissioner of Income-tax (Appeals) was set aside, and the appellant was given an opportunity to present the case before the ld. Commissioner of Income-tax (Appeals) again. The ld. Commissioner of Income-tax (Appeals) was directed to either decide the case or ensure the disposal of the application under section 154 of the Act promptly. Consequently, the case of the assessee was restored to the file of the ld. Commissioner of Income-tax (Appeals).

As a result of the above analysis, the appeal filed by the assessee was allowed for statistical purposes. The decision was pronounced in the open court on 21st August 2024.

---