This article examines the tribunal decision in ITA No. 1406/DEL/2020 where Rajesh Projects (India) Pvt. Ltd. appealed against the order of the Commissioner of Income Tax (Appeals) – 23, New Delhi for the assessment year 2001-02. The core issue revolves around the non-condonation of delay in filing the appeal.
Rajesh Projects (India) Pvt. Ltd. filed its appeal against the order dated January 27, 2020, by the CIT(A). The primary grievance was the CIT(A)’s refusal to condone the delay in filing the appeal which the appellant argued was due to sufficient cause, urging that natural justice be served.
The Income Tax Appellate Tribunal, Delhi Bench, led by Ms. Astha Chandra, Judicial Member, and Shri N.K. Billaiya, Accountant Member, addressed the substantial question of whether the delay in filing the appeal could be condoned. The tribunal acknowledged the administrative complexities faced by the appellant and the rigid stance of the AO regarding the issuance of a fresh demand notice, which played a crucial role in the delay.
The tribunal found that the assessee was ensnared in administrative and legal difficulties that prevented a timely appeal. It highlighted that the principles of natural justice were pivotal, especially in cases where the procedural lapses are not attributable solely to the appellant. Consequently, the tribunal remanded the matter back to the CIT(A) with directions to reconsider the condonation of delay and to decide the appeal on its merits after allowing reasonable opportunity for a hearing.
The decision underscores the importance of fairness and administrative efficiency in tax appeal proceedings. It emphasizes the need for tax authorities to operate not just within the confines of stringent procedural norms but also with a view towards ensuring justice and fair play.
Legal Analysis of ITA No. 1406/DEL/2020: Rajesh Projects (India) Pvt. Ltd. vs. DCIT
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