Mallelil Industries Pvt. Ltd. Vs PCIT (Kerala High Court)
Core Issue. Whether a delay of 676 days in filing an appeal before the ITAT could be condoned when the assessee attributed the delay to lapses on the part of its former auditors and a bona fide belief that the appeal had been filed.
Facts. The assessee received the order of the Commissioner (Appeals) on 24.08.2022 but the appeal before the ITAT was filed with a delay of 676 days. In the condonation application, the assessee explained that it was relying upon its tax auditors and professional advisors and bona fide believed that the appeal had been filed. Subsequently, it came to know that no appeal had been filed. The assessee further stated that its earlier auditors had withdrawn from the assignment, necessitating engagement of a new audit firm. Specific details regarding the earlier and new audit firms were provided in the affidavit supporting the condonation petition.
The ITAT refused to condone the delay, holding that the explanation lacked corroborative evidence and was not bona fide.
High Court Findings. The High Court observed that although the assessee had not produced documentary evidence to substantiate the explanation, the averments were not vague or general. The affidavit contained specific particulars regarding the previous auditors, their withdrawal, the appointment of a new audit firm and the circumstances leading to the delay.
