TaxTMI 
TaxTMI 
2024 (6) TMI 1504
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....n law, Ld. Commissioner of Income tax (Appeals), National Faceless Appeal Centre (NFAC) is not justified in upholding the penalty order which is illegal, bad-in-law and without jurisdiction as penalty proceedings was barred by limitation as prescribed u/s. 275(1)(c) of the Income-tax Act, 1961. 3. In the facts and circumstances of the case and in law, the Id. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC) has erred in confirming imposition of penalty of Rs. 31,00,000/- under section 271 D of the Income-tax Act, 1961, for which there is no satisfaction recorded in the assessment order. 4. The impugned order is bad in law and on facts. 5. The appellant reserves the right to add, alter or omit all or any of the grounds of appeal in the interest of justice. 3. At the very beginning of the hearing in the present case, it was pointed out by the registry that the appeal under consideration is barred by limitation, which is filed with delay by 371 days. When the defect was confronted to the Ld. AR, he placed before us an application along with affidavit of the assessee stating the reasons for delay, that order of Ld. CIT(A) was up....
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.... non-compliance to notices issued u/s. 250. 6. Present appeal before Hon'ble Tribunal is filed late by 371 days. Appellant filed application for condonation of delay along with affidavit, explaining the reasons. 7. The appellant prays that the delay may kindly be condoned for following grounds :- a) Lack of Knowledge of the Order: The appellant did not receive any formal communication regarding the passing of the order. It was only while downloading form 26AS for F.Y.2023-24 appellant came to know of this order. b) Losing track of the matter is attributable to change of physical hearing to Faceless hearing of appeals: The first appeal was filed on 22/04/2017 and after advent of Faceless Appeal Scheme 2021, the entire appeal hearing mechanism has been changed. The counsel who was attending all compliances up to assessment stage has engaged another counsel for. appeals and due to dropping of notices on e-filing portal and for want of physical notices, appellant could not keep track of the developments. c) Non-receipt of any notice for penalty/recovery even after passing of order u/s. 250: The appellant did not receive any order giving ....
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.... cause of substantial justice deserves to be preferred. This principle applies to all judicial and quasi-judicial authorities, including the ITAT. 5. N. Balakrishnan V. M. Krishnamurthy (1998) 7 SCC 123: The Court held that if the delay is explained satisfactorily and the discretion is exercised in a judicious manner, the delay should be condoned in the interest of justice. 6. Ram Nath Sao alias Ram Nath Sahu & Ors. v. Gobardhan Sao. & Ors. (2002) 3 SCC 195: The Supreme Court reiterated that a liberal approach should be taken in matters of condonation, especially when the delay is not due to the appellant's malafide conduct. 7. Rafiq & Anr. v. Munshilal & Anr. (1981) 2 SCC 788: The Supreme Court observed that the party should not suffer for the fault of their counsel, emphasizing that the judiciary should adopt a lenient approach. 8. Vedabai @ Vijayanatabai Baburao Patil v. Shantaram Baburao Patil (2001) 9 SCC 106: It was held that in matters of condonation of delay, a pragmatic and justice-oriented approach should be adopted. 9. Improvement Trust, Ludhiana v. Ujagar Singh (2010) 6 SCC 786: Although not specifically related to Income....
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....h Court held that the Tribunal has the power to condone the delay in filing an appeal if a reasonable cause is shown. The Court emphasized that a pragmatic approach should be adopted, and if the appellant's explanation appears reasonable, the delay should be condoned. 18. Vijay Vishin Meghani v. DCIT (2015) 68 SOT 16 (Mumbai - Trib.): The ITAT Mumbai Bench held that the Tribunal is empowered to condone the delay in filing an appeal if the appellant shows sufficient cause. The Tribunal emphasized the importance of substantial justice and stated that technicalities should not prevent the adjudication of a matter on its merits. 19. People Education and Economic Development Society (FEEDS) v. ITO (100 ITD 87) (Chennai) (TM) Learned Tribunal has condoned more than six hundred days delay. 20. CIT vs. K.S.P. Shanmugavel Nadai and Ors. (153 ITR 596) The Court has considered the condonation of delay and held that there was sufficient and reasonable cause on the part of the assessee for not filing the appeal within the period of limitation. Accordingly, the Madras High Court condoned nearly 21 years of delay in filing the appeal 21. Sreenivas Charitable T....
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....at appellant Society is working in remote area and its office bearers are not in the habit of checking their mails on regular basis - HELD THAT :- In view of N Balakrishnan vs. M. Krishnamurthy [1998 (9) TMI 602 - SUPREME COURT] we find that the intention of the assessee is not malafide and the circumstances stated appears to be bonafide which cannot be ignored in order to impart justice. In view of the above facts, circumstances of the case and the judgment of Hon'ble Supreme Court (supra), the delay in filing appeal by the appellant Society is condoned and appeal is admitted for the decision on merits. 28. Vinod Premjibhai Gangani Versus The Acit (Osd), Ward - 3 (2) (3), Surat- 2024 (4) TMI 588 - ITAT Surat Delay in filling appeals - delays of 160 days in filing present appeal - HELD THAT :- The assessee is not likely to get any benefit in filing the appeals belatedly, rather there is always chance that such delay not be condoned. Considering the submission of Ld. AR for the assessee, wherein he has fairly accepted that he could not logged on the ITBA portal due to frequent changing in password by regular CA of assessee. We find that assessee has reasonably explained....
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....chnical glitches. b) It is admitted fact that no assessee or tax consultant could keep on checking his registered e-filing portal on day-to-day basis. c) In fact the Faceless Assessment Scheme provides for issuance of final notice in physical form in case of non-responsive assessees and there is no such provision in Faceless Appeal Scheme, 2021. d) Case laws recognize transitional challenges posed by the National Faceless Appeal Scheme and Judiciary acknowledges challenges and technical issues faced by taxpayers due to the new scheme. e) Consideration of appellant's bona fide reasons is important for delivering substantial justice. f) Emphasis is on deciding cases on their merits rather than dismissing on technical grounds. g) Hon'ble ITAT has the discretionary power to condone delays in filing appeals and is encouraged to adopt a liberal and justice-oriented approach. h) In fact Hon'ble Tribunals have consistently adopted a liberal approach in condoning delays. i) The objective ensures that taxpayers are not unfairly prejudiced due to procedural changes under the new scheme. j) Justice and....
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....see, however the main case laws pointed out are No. 4 (Collector, Land Acquisition v. Mst. Katiji (1987) 2 SCC 107) and No. 24 (Shakti Steel Trading vs. The Asstt. Commissioner (ST) WP No. 4122 & 4255 & 4256 (Madras HC)). All such case laws were dealt with by the tribunal in its earlier orders dealing with the issue of condonation of delay which were further approve by the Hon'ble Jurisdictional High Court, therefore, in absence of any further explanation by the assessee other than the explanations by the assessee's in the earlier cases before the tribunal, we do not see any reason to decide the matter of condonation of delay in the present case differently than the same were decided in its earlier orders. Under such facts and circumstances, the request of the assessee for seeking condonation of delay stands rejected. 8. The aforesaid aspect has been dealt with at length by the SMC Bench of this ITAT, Raipur in the case of Satish Kumar Agrawal vs. ITO-2(1) in ITA No. 53/RPR/2024 dated 23.04.2024, wherein the observations of the tribunal are as under: 14. I shall now deal with the judgments/orders as had been pressed into service by the Ld.AR in his attempt to support hi....
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....them of having remained unaware of the fact that the CIT(Appeals) had disposed off the appeal, thus, for the said reason, had condoned the delay that had crept in the filing of the appeal before them. Also, the Tribunal had observed that the department had neither refuted the contention of the assessee not placed on record any material which would prove to the hilt that the order passed by the CIT(Appeals) was duly served upon the assessee and was well within his knowledge. It was, thus, in the backdrop of the aforesaid facts wherein the bonafide of the assessee was neither in any clout of doubt nor refuted by the department that the delay involved in filing the appeal was condoned by the Tribunal. However, in the present case before me, I am afraid that not only the explanation of the assessee that the delay in filing the appeal had occasioned due to his ill health is not supported by any evidence proving the same, but rather his non-cooperative conduct before the ower authorities does not inspire any confidence as regards the veracity of the reason given by him to explain the delay involved. In fact, Ld. D.R. had objected to the seeking of condonation of delay by the assessee on ....
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....ee smacks of his lackadaisical approach and callous conduct, which can safely be gathered from the orders of the lower authorities, i.e. AO/CIT(Appeals) who were constrained to pass ex-parte orders. As the facts involved in the case law relied upon by the ld. AR are distinguishable, therefore, the same would not carry the case of the assessee any further. (F) Collector of Land Acquisition Vs. Mst Katiji (1987) 167 471 (SC) Apropos the reliance placed by the Ld. AR on the judgment of the Hon'ble Apex Court in the case of Collector, Land Acquisition Vs. Mst. Katiji and Others (supra), the same being distinguishable on facts as against those involved in the captioned appeal before me, thus, would not assist his case. The Hon'ble Apex Court, stressing upon considering a "sufficient cause" by the Courts, while deciding as to whether the delay involved in the filing of the appeal merits to be condoned, had observed that the said term employed by the legislature is adequately elastic to enable the courts to apply the law in a meaningful manner which subserves the ends of justice which is the life purpose of existence of the institution of courts. At the same time....
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....d the CIT(Appeals), then, it would send a wrong message and would lay down a wrong precedent for others to follow. My aforesaid view is fortified by the order of the Hon'ble High Court of Chattisgarh in the case of Vidya Shankar Jaiswal Vs. The Income-tax Officer, Ward-2, Ambikapur, Tax Case No. 86 of 2024, dated 12.04.2024. The Hon'ble Jurisdictional High Court while dealing with identical facts where the assessee appellant who had neither participated in the assessment proceedings before the A.O nor appeared before the CIT(Appeals), had approved the declining of his application for condonation of the delay in filing of the appeal before the Tribunal. For the sake of clarity, the observations of the Hon'ble High Court are culled out as under: "9. We have heard learned counsel for the parties, perused the pleadings and documents appended thereto. 10. From perusal of the documents available on record, it transpires that as per the information obtained from the Annual Information Return, it was observed by the AO that though the assessee made cash deposits of Rs. 34,67,700/- in his savings bank account during the year under consideration but had not filed his return....
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....ssessee to participate in the hearing. Four notices were issued to the assessee informing the assessee about the date of hearing but the assessee did not participate in the proceedings before the CIT(A). The CIT(Appeals) taking notice of the fact that the assessee had adopted an evasive approach and, despite being well informed, had not only chosen not to participate in the proceedings before him but also, despite sufficient opportunities, had not placed on record any submissions whatsoever, whether documentary or otherwise to substantiate his claim that the A.O had erred in treating the cash deposit of Rs. 34,67,700/- in his bank account as unexplained money under Section 69A of the Act, thus, upheld the order passed by the AO under Sections 144/147 of the Act, dated 16.12.2018. 12. In the course of the proceedings before the Tribunal, the conduct of the assessee remains the same as was there before the learned CIT(A) and the A.O. The appeal filed by the assessee before the learned ITAT involves a delay of 166 days. On a careful perusal of the facts leading to the delay in filing of the present appeal, the reason that the bonafides of the reasons leading to the delay in f....
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.... or CIT (Appeals), then, it would send a wrong message and would lay down a wrong precedent for the times to come. ..." 15. As has been rightly relied on by the learned ITAT that in the case of State of West Bengal Vs. Administrator, Howrah, reported in 1972 AIR SC 749, the Hon'ble Apex Court had held that the expression "sufficient cause" should receive a liberal construction so as to advance substantial justice, particularly when there is no motive behind the delay. The expression "sufficient cause" will always have relevancy to reasonableness. The action which can be condoned by the Court should fall within the realm of normal human conduct or normal conduct of a litigant. However, as the assessee appellant in the present case is habitually acting in defiance of law, where he had not only delayed in filing of the present appeal but also had adopted a lackadaisical approach and not participated in the course of the proceedings before the CIT(A), therefore, there can be no reason to allow his application and condone the substantial delay of 166 days involved in preferring of the captioned appeal. Now, when in the present appeal the appellant / assessee had failed to come ....
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....appeal of the assessee as barred by limitation. 10. In the result, without dealing with the merits of the grounds raised in the present case, the appeal of the assessee is dismissed as not maintainable in terms of our aforesaid observations. Order pronounced in the open court on 28/06/2024. ============= Document 1 4.40 Bhilai, 30/05/2024 30/05/24 विधि और नà¥à¤¯à¤¾à¤¯ मंतà¥à¤°à¤¾à¤²à¤¯ Ministry of Law & Justic. कà¥à¤°à¤®à¤¾à¤‚क 655 To The Asstt. Registrar, Income-tax Appellate Tribunal, Raipur Bench, 5th Floor, B-Wing, Central Secretariat Building, Sector-24, Nava Raipur Distt. Raipur (CG). 3 0 MAY 2024 आयकर अपीलीय अधिनà¥à¤Ÿà¤°à¤£, रायधà¥: Income-Tax Appellate Tribunal, Raipur Sub: Request for removal of deficiency in the case of Vineet Singh Construction Company Private Limited, Bilaspur- Assessment Year 2012-13. Sir, In connection with above matter, it is respectfully submitted that aggrieved by order u/s.250 of th....
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...., appellant filed appeal before ld. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi. 7. That the Ld. Commissioner of Income Tax (Appeals) decided the appeal on 20/03/2023 and it appears that the appellate order was uploaded in the company's account in Income tax portal. 8. That employee of the company looking after accounting worklogged into income tax account on 02/05/2024 for downloading form 26AS of F.Y.2023-24 required for finalizing books of account and while downloading the said form he came across the appellate order passed u/s.250 of the Act, I was informedabout the said order on the same day and therefore delay has occurred. 9. Immediately thereafter I, in the capacity of director of Appellant company, am filing the appeals within the shortest time possible. 10. That there is no delay in filing the appeal from the date when I was made aware of the passing of appeal order. However, considering date of passing of order u/s.250, there will be delay of 371days. However, as a matter of abundant precaution, appellant is filing present application for condonation of delay. 11. That in view of facts and circumstances, it is humbly....