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.
Accordingly, the Tribunal condoned the delay, set aside the CIT(A)’s order, and restored the matter for fresh adjudication on merits, directing the assessee to cooperate and furnish necessary evidence.
The appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
The present appeal has been filed by the Assessee against the order passed by the National Faceless Appeal Centre (NFAC), Delhi, dated 27.09.2025 for Assessment Year 2021–22.
2. At the outset, it is observed that there was a delay of 143 days in filing the appeal before the learned CIT(A), which was not condoned. Consequently, the appeal of the Assessee was dismissed in limine, without adjudicating the issues on merits by the ld. CIT-A. The Assessee had filed a condonation petition before the learned CIT(A), explaining that the delay occurred due to the resignation of the employee handling tax matters, and the appeal could not be filed within the prescribed time until a replacement was appointed.
