Income Tax Appeals Revived Despite 3,839-Day Delay to Ensure Merits Examination

Plaza Properties Limited Vs ITO (ITAT Chennai)

Even 10-Year Delay Not Fatal: ITAT Chennai Restores Appeals Dismissed In-Limine for 3,839 Days’ Delay

Chennai ITAT set aside the NFAC orders which had dismissed the Assessee’s appeals in limine due to an inordinate delay of 3,839 days in filing Form 35. The CIT(A) had refused to condone the delay as the Assessee neither gave specific reasons in Form 35 nor responded meaningfully to repeated notices, seeking only adjournments.

While strongly deprecating the Assessee’s casual and nonchalant conduct, the Tribunal nevertheless held that, in the interest of justice and equity, the matter deserved one more opportunity. ITAT accepted the Assessee’s plea that the delay arose due to belated knowledge of intimations issued u/s 200A levying late fee u/s 234E and restored the appeals to the file of the FAA. The Assessee was directed to file a proper condonation application with specific reasons and evidence, and the FAA was directed to adjudicate the issues on merits if satisfied with the explanation, after granting reasonable opportunity of hearing. Both appeals were thus allowed for statistical purposes.

FULL TEXT OF THE ORDER OF ITAT CHENNAI

These appeals filed by the assessee are directed against two orders of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 01.09.2025 & 29.08.2025 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Years are 2013-14 & 2014-15.