2025 (3) TMI 2011

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....re the ITAT. The assessee has submitted a duly notarized condonation petition explaining the delay. In the petition, the assessee stated that for the year under consideration, two appeals were filed before the NFAC, as detailed below: # Order appealed under section^1 Date of order appealed CIT(A) Appeal No. 1 143(3) r.w.s. 263 28.12.2017 CIT(A),Bengaluru- 14/10196/2017- 18 2 143(3) r.w.s. 144C 29.04.2015 CIT(A),Bengaluru- 14/10342/2015- 16 3. The assessee opted for the VSV scheme to settle the dispute related to the order passed under section 143(3) read with Section 263 of the Act. However, the NFAC mistakenly dismissed the assessee's appeal under Section 143(3) read with Section 144C of the Act vide ....

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....he assessee's Authorized Representative (AR) stated that the assessee was under the impression that the transfer pricing adjustment issue would be handled by the Jurisdictional ld. CIT(A) and not the NFAC. The ld. AR further argued that the transfer of the appeal from the Jurisdictional CIT(A) to the NFAC was legally incorrect. Consequently, the assessee expected to receive a notice from the Jurisdictional CIT(A), not the NFAC. 7. We have considered the arguments of both parties and examined the records. The delay of 1206 days is certainly significant. However, the length of the delay is not the primary concern; rather, the cause of the delay is what matters. If a reasonable cause exists, the delay can be condoned. 7.1 The Hon'ble Mad....

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....e Court ruled that sufficient cause must be an adequate and justifiable reason preventing the petitioner from approaching the Hon'ble Court within the prescribed time. If negligence or lack of diligence is found, delay should not be condoned. 7.4 The assessee's argument that it only discovered the NFAC's decision after three years of statutory audits is unconvincing. Given the company's professional support and annual audits, it should have identified the mistake much earlier. The delay of over three years is excessive, and the explanation provided is not fully satisfactory. 7.5 However, a review of the NFAC's order indicates that it relied on the ITBA portal's information, which incorrectly suggested that the assessee had opted for t....