Appeal Against Dismissal Due to Filing Delay in Case Number ITA 1425/DEL/2022

Understanding the Tribunal’s Decision on ITA 1425/DEL/2022: An Appeal Against Dismissal Due to Filing Delay

In a significant judgment delivered by the Income Tax Appellate Tribunal, Delhi Bench ‘C’, the appeal filed by an appellant, Indrawati from Nagal Kheri, Panipat, against the order dated 19.04.2022 of the Commissioner of Income Tax (Appeals), NFAC, Delhi, concerning the assessment year 2017-18, was allowed. This case, documented as ITA No. 1425/DEL/2022, brings to light several crucial facets of law, particularly relating to the dismissal of an appeal on grounds of delay, and underscores the principles of justice over procedural technicalities.

The genesis of this appeal lies in the assessment orders dated 18.08.2020 passed by the Assessing Officer under Section 154 of the Income Tax Act, 1961, for the assessment years 2017-18 and 2018-19. The appellant, a rural agriculturist with no formal education nor any taxable income for the year under consideration, approached the tribunal against what was perceived as an erroneous decision by the Central Processing Centre, Bangalore, under section 143(1) of the Act, and the consequent dismissal for delay in filing the appeal by the CIT(A).

The tribunal, after considering the circumstances and the appellant’s inability to file the appeal within the prescribed timeline due to understandable reasons including the impact of the Covid-19 pandemic, applied a principle of leniency. The judgement meticulously details the errors attributed to the CPC’s adjustment and the lack of proper opportunity given to the appellant to explain the delay in filing the appeal, deeming it a violation of the Principles of Natural Justice.

Through the lens of similar precedents and the guiding principles from the Honourable Supreme Court, the tribunal underscores the necessity of a justice-centric over a procedure-centric approach in the legal framework. The order not only illuminates the interpretation of ‘sufficient cause’ for condonation of delay but also sets a precedent for future cases where minor procedural lapses stand in the way of substantive justice.

The decision, pronounced by the judicial and accountant members on 19/04/2023, allowed the appeal for statistical purposes, directing a de novo adjudication on merits by the CIT(A). This act of judicial discretion, favouring the cause of substantial justice, serves as a critical reminder of the courts’ role in interpreting laws to advance justice, especially in cases involving unrepresented, financially unsophisticated appellants.

The tribunal’s direction for a re-examination of the case on merits reaffirms the legal principle that delays, especially under compelling circumstances, should not preclude the hearing of potential meritorious cases. It advances the dialogue on balancing technical compliance with legal proceedings and the overarching goals of fairness and justice in the administrative adjudication process.

Conclusion

In conclusion, the ruling in ITA 1425/DEL/2022 marks a pivotal moment in the landscape of tax litigation, reinforcing the importance of equity and inclusivity in legal processes. It provides a comprehensive blueprint for how tribunals and courts can navigate the complex interplay between procedural statutes and the fundamental tenets of justice, ensuring that no individual is denied their right to a fair trial on the grounds of procedural defaults.

Appeal Against Dismissal Due to Filing Delay in Case Number ITA 1425/DEL/2022