Aadarsha Education Society Vs ITO (ITAT Bangalore)
ITAT Bangalore Condones 3-Year Delay; Appeal Cannot Be Rejected Merely Because Taxpayer Trusted Professional Advice
The Bangalore ITAT, in the case of Sri Aadarsha Education Society, held that a delay of nearly 3 years in filing appeals before the CIT(A) deserved to be condoned where the assessee had acted bona fide and had relied on a tax professional who pursued a rectification application under section 154 instead of filing an appeal. The Tribunal observed that the assessee had genuinely believed that the issue would be resolved through the rectification proceedings and approached the appellate remedy immediately after realizing that an appeal was required.
The CIT(A) had refused to condone the delay and dismissed the appeals on technical grounds. However, the Tribunal noted that the assessee had shown sufficient cause for the delay and there was no evidence of any mala fide intention or deliberate negligence. Relying on the Supreme Court decision in Collector, Land Acquisition v. Mst. Katiji (167 ITR 471) and other precedents, the Tribunal reiterated that substantial justice must prevail over technical considerations and that refusal to condone delay could result in a meritorious matter being thrown out at the threshold.
The ITAT further remarked that when a reasonable cause is established, the length of delay becomes secondary. Referring to precedents where even much longer delays had been condoned, the Tribunal held that a delay of about three years could not be treated as excessive in the facts of the case. Accordingly, it condoned the delay, set aside the orders of the CIT(A), and restored the appeals for fresh adjudication on merits after granting proper opportunity to the assessee.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
