MBR Educational Society Vs ITO (ITAT Hyderabad)
Staff Misconduct not a Justification: Hyderabad ITAT Criticizes CA’s oversight Failure – not condoned the delay in filing of appeal:
The Income Tax Appellate Tribunal, Hyderabad Bench, has dismissed the appeal filed by MBR Educational Society for the assessment year 2018-19, citing an extraordinary delay of 441 days in filing. The assessee sought condonation of delay, submitting affidavits explaining that its Chartered Accountant had mistakenly believed that the appeal was filed, whereas the staff member responsible had left employment without completing the task. The Tribunal, however, found the explanation unconvincing.
The ITAT observed that an educational society engaged in organized activities is expected to maintain proper oversight of statutory appeals. The fact that no enquiry was made for nearly 15 months after entrusting the preparation of appeal papers indicated a serious lack of diligence. Further, the Tribunal noted inconsistencies and improbabilities in the Chartered Accountant’s affidavit, particularly the claim that appeal papers were taken away by the staff member.
Holding that the explanation did not constitute “sufficient cause” under section 253(5), the Tribunal relied on the Supreme Court judgment Balwant Singh v. Jagdish Singh, which emphasizes that delay cannot be condoned without credible justification. Consequently, the appeal was dismissed in limine as barred by limitation.
