The Income Tax Appellate Tribunal, New Delhi, ruled that death of tax consultant is a valid ground for delay condonation.
The tribunal said that in view of the fact of the death of the tax consultant of the assessee during the material period and the assessee’s bonafide belief that its petition u/s 154 was still pending, there was a reasonable cause for the delay in filing of the appeal.
Facts
The appeal filed before the CIT(A) emanated from an order u/s 154 of the Act. However, the CIT(A) held that there was a delay of six years in filing the appeal before the CIT(A) by taking note of the fact that the original order u/s 154 of the Act was passed on 13.01.2016 raising a demand of Rs.17,99,230/-. The CIT(A) did not agree with the explanation of the assessee for the delay in filing of the appeal and the condonation for delay was rejected by the CIT(A). The CIT(A) held that the appeal was not maintainable in view of the provision of section 249(2) of the Act and dismissed the appeal of the assessee.
Submissions
During the appellate proceedings, the AR filed a copy of death certificate of the assessee’s tax consultant CA Brij Bhushan Tandon, who passed away on 24.01.2015.
It was submitted by the AR that Shri Brij Bhushan Tandon advised the assessee on tax related matters and his e-mail address [returns.btitr@yahoo.com] was mentioned in the ITR of the assessee and the u/s 154 order dated 13.01.2016 raising the demand of Rs.18,52,190/- was neither e-mailed or otherwise communicated to the assessee. It was further submitted that the assessee was served the demand notice on 04.01.2023 with a demand notice dated 27.12.2022 for Rs.16,70,027/-.
Thereafter, the assessee filed an appeal before the ld. CIT(A) on 10.02.2023 against the order u/s 154 dated 27.12.2022.
It was submitted that the assessee was under bonafide belief that the rectification application filed on 02.07.2019 was pending before the AO and was hopeful of relief and the vacation of the demand.
Conclusion
The bench condoned the delay in filing the appeal before the CIT(A) and restored the matter to the file of the CIT(A) to decide the appeal on merits.
Case Details
Case Name: Manisha Arora V/S Income Tax Officer
Citation: ITA No.2274/DEL/2024
Tribunal: ITAT New Delhi
Coram: Shri Challa Nagendra Prasad, Judicial Member And Shri Brajesh Kumar Singh, Accountant Member
