Arti Mishra Vs ITO (ITAT Dehradun)
Bona Fide Limitation Misconception Accepted: 138-Day Delay Issue Sent Back to CIT(A)
Dehradun ITAT held that dismissal of appeal by NFAC-CIT(A) solely on the ground of delay, without permitting the assessee to seek condonation, was not justified, and therefore remanded the matter for fresh consideration.
The Assessee’s assessment involved an addition of ₹74 lakh towards LTCG. Appeal before CIT(A) was filed with a delay of 138 days, but no separate application for condonation was filed, as the Assessee was under a bona fide belief that the appeal was within limitation. NFAC-CIT(A) dismissed the appeal in limine for delay.
ITAT observed that there was indeed a delay, but the explanation that the Assessee was under a misconception regarding limitation period constituted a prima facie reasonable cause. Applying the liberal approach mandated by the Supreme Court in Collector vs. Mst. Katiji, Tribunal held that the Assessee should be given an opportunity to file a proper condonation application.
Accordingly, ITAT set aside the NFAC order, remanded the matter to CIT(A) with liberty to the Assessee to file an application for condonation of delay, and directed CIT(A) to decide the issue in accordance with law. The appeal was partly allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT DEHRADUN
