Case Number: ITA 1136/DEL/2021
Appellant: Supertech Realtors Pvt. Ltd., New Delhi
Respondent: Additional Commissioner of Income Tax (ACIT), Special Range, Ghaziabad
Assessment Year: 2015-16
Case Filed On: 2021-09-16
Order Type: Final Tribunal Order
Date of Order: 2022-11-25
Pronounced On: 2022-11-25
Supertech Realtors Pvt. Ltd., a New Delhi-based company, filed an appeal against the order of the Commissioner of Income Tax (Appeals) [CIT(A)]-3, Kanpur, dated 09.09.2020. The case involved the assessment year 2015-16, where the assessee challenged the addition and consequential reduction of interest paid to NOIDA Authority from the inventories/work-in-progress, arguing that the provisions of Section 40(a)(ia), read with Section 194A of the Income Tax Act, were not applicable based on a jurisdictional High Court decision affirmed by the Supreme Court.
The Tribunal noted that the assessee had filed the return of income on 29.09.2015, declaring total income of Rs. Nil. The assessee company is engaged in the development and construction of residential and commercial projects, and during the year under consideration, it undertook the construction of its first and sole mixed-use project named “Supernova”.
The appeal before the CIT(A) was filed with a delay of 125 days. The CIT(A) refused to condone the delay, citing negligence and a lack of bonafides on the part of the assessee. The assessee explained that the delay was for bonafide reasons, supported by a statement from Alok Kumar, who was responsible for filing the appeal.
The Tribunal found that the interest of justice would be better served if the assessee was given an opportunity to explain the reasons for the delay in filing the appeal with all the evidences before the CIT(A). The Tribunal directed the CIT(A) to consider the explanation and take a decision as per the provisions of the Income Tax Act, keeping in view the principles of justice, equity, and good conscience.
The Tribunal emphasized that the CIT(A) should adopt a liberal approach in condoning the delay, as the Supreme Court has ruled that substantial justice should be preferred over technical considerations. The Tribunal highlighted the Supreme Court’s judgment in the case of Collector Land Acquisition v. Mst Katiji, where it was held that in matters of condonation of delay, a liberal approach should be adopted.
In the result, the appeal of the assessee was allowed for statistical purposes. The case was remanded back to the CIT(A) for reconsideration of the delay condonation and merits of the appeal.
Order pronounced in the open Court on 25.11.2022.
Judicial Member: Sh. C. N. Prasad
Accountant Member: Dr. B. R. R. Kumar
For Assessee: Sh. Manoj, Employee in the Company
For Revenue: Sh. Rajesh Kumar, CIT DR
Date of Hearing: 12.09.2022
Date of Pronouncement: 25.11.2022
This case underscores the importance of providing adequate opportunity to the assessee to explain delays in filing appeals. The Tribunal’s decision to remand the case for reconsideration reflects the need for a balanced approach that considers both substantial justice and procedural technicalities. The principles laid down by the Supreme Court advocate for a liberal approach in condoning delays, ensuring that justice prevails over technicalities.
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