Condonation of delay in ITAT tax appeal due to postCOVID business disruption; appeal restored subject to costs and merits hearing

Condonation of delay in filing an appeal before the ITAT was granted despite a 202day delay, the court accepting postCOVID business disruption and difficulty as sufficient cause; consequence: the appeal was restored and remitted to the ITAT for decision on merits. The court noted the impugned appellate order had been passed without an oral hearing, raising potential denial of opportunity to be heard; consequence: restoration was considered necessary to avoid remedilessness. As a condition for condonation, the appellant was ordered to pay costs of Rs.15,000 to the state legal services authority within 15 days.

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Issues: Whether the delay of 202 days in preferring the appeal before the Income Tax Appellate Tribunal can be condoned and the Tribunal's order rejecting the appeal as barred by limitation set aside, thereby restoring the appeal for decision on merits.

Analysis: The delay is limited to 202 days and occurred in the immediate post-COVID-19 period when commercial activities faced widespread disruption; the appellant also alleges that the Commissioner of Income Tax (Appeals) decided without hearing the appellant on merits. The Tribunal has discretionary power to condone delay on sufficient cause being shown. Considering the short period of delay, the contextual difficulties arising from the pandemic, and the potential denial of an effective opportunity to contest the appellate order on merits, it is appropriate to allow discretionary relief subject to imposition of a cost as a condition for restoring the appeal.

Conclusion: The delay of 202 days is condoned on payment of Rs.15,000 to the Telangana State Legal Services Authority within 15 days; upon production of the receipt, the ITA No.895 of 2025 shall stand revived and the appeal shall be decided on merits. The decision is in favour of the assessee.

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