Income Tax Appeal for Assessment Year 2016-17 Allowed After Delay: A Case Study of ITA 1134/DEL/2022

Income Tax Appeal for Assessment Year 2016-17 Allowed After Delay: A Case Study of ITA 1134/DEL/2022

The Income Tax Appellate Tribunal (ITAT) in Delhi dealt with a noteworthy case, ITA No. 1134/Del/2022, involving the appellant, Parveen, owner of M/s. Naveen General Store, Panipat, Haryana, and the respondent, the Income Tax Officer, Ward-3, Panipat. This appeal, concerning the assessment year 2016-17, showcases significant procedural intricacies and the importance of timely legal counsel in tax litigation.

Background

Parveen’s business was subjected to scrutiny for the assessment year 2016-17, resulting in an enhanced income assessment and a consequent demand notice. An initial appeal made to the Commissioner of Income Tax (Appeals) [CIT(A)], Karnal, was dismissed for non-prosecution, largely due to the appellant’s CA’s negligence in attending the hearings and informing the appellant.

Procedural Hurdles and Appeal to ITAT

Upon discovering the appeal’s dismissal and the demand notice, Parveen sought new counsel and decided to approach the ITAT. The appeal was filed with a delay of 810 days, accompanied by a petition for condonation of delay. The ITAT, taking into account the circumstances and the impact of the COVID-19 pandemic on communication and procedural actions, condoned the delay, allowing the appeal to proceed.

The Tribunal’s Decision

The ITAT’s decision to allow the appeal for statistical purposes and remand the case back to the CIT(A) underscores the significance of addressing appeals based on their merits, rather than procedural lapses alone. The Tribunal’s emphasis on providing adequate opportunity for being heard reflects a commitment to fairness and justice in the assessment process.

Conclusion

This case highlights the critical importance of effective communication and diligent legal representation in tax litigation. It also illustrates the judiciary’s capacity to prioritize substantive justice over procedural technicalities, especially in scenarios where appellants face genuine obstacles. The outcome of ITA 1134/DEL/2022 serves as a reminder of the legal system’s flexibility and its intention to safeguard the rights of taxpayers.

Income Tax Appeal for Assessment Year 2016-17 Allowed After Delay: A Case Study of ITA 1134/DEL/2022