Employee Exit Is Sufficient Cause: ITAT Condoned Delay and Restores Appeal for Fresh Hearing

Reddy Housing Pvt. Ltd. Vs DCIT (ITAT Bangalore) The assessee’s appeal was dismissed by the CIT(A) due to a delay of 143 days without examining the merits. The delay was explained as arising from resignation of the employee handling tax matters, causing administrative disruption and delay in filing the appeal. The ITAT accepted this explanation as a bona fide and reasonable cause, reiterating that a liberal approach should be adopted in condoning delays to ensure substantial justice. It held that a taxpayer should not be denied the right to contest on merits due to procedural lapses. Accordi...