Unnatiben Suhitbhai Gajjar Vs ITO (ITAT Ahmedabad)
Extraordinary Delay of Over 3,100 Days Condoned with Costs; Matter Remanded for Adjudication: ITAT Ahmedabad
The Ahmedabad Bench (SMC) of the Income Tax Appellate Tribunal (ITAT) partly allowed the assessee’s appeal for AY 2010-11, condoned an exceptional delay of about 3,113 days in filing the first appeal, and remanded the matter to the CIT(A) for adjudication on merits, subject to payment of costs.
The assessee discovered an outstanding demand of ₹3.22 lakh only in June 2024, when it came to light that the CPC intimation under section 143(1) had erroneously doubled the business income from ₹5.98 lakh to ₹11.91 lakh. The original intimation dated 18.07.2016 was never communicated, and the assessee had remained outside Gujarat during the intervening years, leading to lack of awareness of the demand. On discovering the demand, the assessee promptly filed a rectification application under section 154, followed by a belated appeal.
While the CIT(A) dismissed the appeal on limitation, the ITAT held that:
- The delay, though inordinate, was not deliberate or mala fide;
- The assessee acted promptly upon gaining knowledgeof the demand; and
- There was a prima facie apparent mistakein computation (doubling of income), which the Revenue failed to explain.
Balancing equity and procedural discipline, the Tribunal condoned the delay subject to payment of ₹10,000 as costs to the Prime Minister’s Relief Fund, and restored the matter to the CIT(A) with directions to adjudicate the issues afresh on merits after granting reasonable opportunity of hearing.
