Case Number: ITA 37/DEL/2021
Appellant: Durga Apparels Pvt Ltd, New Delhi
Respondent: ITO WARD – 7(4), New Delhi
Assessment Year: 2011-12
Case Filed On: January 20, 2021
Order Type: Final Tribunal Order
Date of Order: May 27, 2022
Pronounced On: May 27, 2022
This case involves an appeal filed by Durga Apparels Pvt Ltd against the order of the Commissioner of Income Tax (Appeals) – 3, New Delhi. The core issue pertains to the delay in filing the appeal, which was ultimately dismissed by the CIT(A) without condoning the delay.
The appellant, Durga Apparels Pvt Ltd, is a company based in New Delhi. For the assessment year 2011-12, the company filed an appeal against the Income Tax Officer (ITO) Ward – 7(4), New Delhi. The appeal was initially filed with the CIT(A) but was dismissed due to a delay in filing.
The assessment order and demand notice were served on the appellant on December 10, 2018. The due date for filing the appeal was January 9, 2019, but the appeal was filed on February 8, 2019, resulting in a delay of approximately 30 days. The appellant explained that the delay was due to the Director suffering from high fever and being on bed rest for an extended period.
The CIT(A) found this explanation unacceptable and dismissed the appeal in limine. The appellant then brought the case before the Income Tax Appellate Tribunal (ITAT).
The appellant argued that the delay was justifiable given the Director’s health issues. The delay was only 30 days and should be considered minor. The appellant emphasized that the CIT(A) should have considered the explanation and condoned the delay in the interest of justice.
The respondent, represented by Shri Om Prakash, Senior Departmental Representative (DR), supported the CIT(A)’s decision to dismiss the appeal due to the delay. The respondent argued that the CIT(A) acted within their rights to reject the appeal given the failure to meet the filing deadline.
The ITAT, presided by Shri Challa Nagendra Prasad, Judicial Member, reviewed the case and found that the explanation provided by the appellant was plausible. The Tribunal noted that the CIT(A) should have considered the health issues of the Director as a valid reason for the delay.
The ITAT stated, “The reason given by the assessee that the Director was suffering from high fever and was on bed rest for a long time is a plausible explanation for not filing the appeal in time.” The Tribunal emphasized that the delay of 30 days was not substantial and should have been condoned.
In the interest of justice, the ITAT decided to restore the appeal back to the file of the CIT(A). The CIT(A) was directed to consider the petition for condonation of delay and to adjudicate the appeal on its merits, providing the appellant with an adequate opportunity to be heard.
In conclusion, the ITAT allowed the appeal for statistical purposes and restored it to the CIT(A) for reconsideration. The decision highlights the importance of considering genuine explanations for delays in filing appeals and ensuring that justice is served by allowing appeals to be heard on their merits.
Order pronounced in the open court on May 27, 2022
Signed,
(C.N. PRASAD)
Judicial Member
Dated: May 27, 2022
Assistant Registrar, ITAT: Delhi Benches-Delhi
Durga Apparels Pvt Ltd vs. ITO: Appeal Delay and Condonation – Assessment Year 2011-12
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