The Banglore Bench of Income Tax Appellate Tribunal (ITAT) has imposed the cost of Rs. 500 on assessee citing unexplained delay in filing income tax appeal.
The bench of Waseem Ahmed (Accountant Member) has observed that the COVID-19 pandemic played a significant role in the delay in filing the appeal, though it did not fully justify the entire period of non-compliance. In order to balance the justice and to ensure that the assessee gets a fair opportunity, the delay in filing the appeal before the CIT-A was condoned.
The appellant/assessee was required to file the appeal before the learned CIT(A) under section 249(2) of the Income Tax Act on or before 24-10-2019. However, the assessee filed the appeal on 31st January 2022, resulting in a delay of 830 days.
The CIT(A) observed that a major part of the delay in filing the appeal was attributable to the COVID-19 pandemic, except for a delay of 142 days.
According to the CIT(A), the delay of 142 days was not explained by the assessee with supporting documents, except for a submission in Form 35 stating that the appeal was delayed due to ill health and the COVID-19 pandemic.
The CIT(A) was not satisfied with the assessee’s submission, as it was not supported by any documentary evidence. Consequently, the CIT(A) dismissed the appeal of the assessee.
The assessee contended that the assessee failed to comply with the notices issued by the learned CIT(A). However, the AR undertook the responsibility of ensuring necessary compliance if another opportunity is provided to represent the case before the AO as the assessment order was ex-parte to the assessee. Accordingly, the learned AR requested that the issue be set aside to the file of the AO.
The department contended that the time limit for filing the appeal had expired much before the COVID-19 pandemic, and therefore, the assessee should not be granted the benefit of the pandemic as a reason for the delay. Additionally, the assessee had been negligent in his approach, and hence, the delay should not be condoned without imposing a cost.
The tribunal held that on account of the unexplained delay of 142 days satisfactorily, a nominal cost of Rs. 500 is payable by the assessee to the Income Tax Department.
The tribunal condoned the delay subject to the payment of a nominal cost, allowing the assessee another chance to present his case before the learned AO as the assessment order was ex parte.
Case Details
Case Title: M/s Chithuvalli Duggegowda Versus The Income Tax Officer
Case No.: ITA No. 2104/Bang/2024
Date: 20.02.2025
Counsel For Appellant: Hemanth
Counsel For Respondent: Ganesh R Ghale
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