Case Law Details
Eit Services India Pvt. Ltd. Vs ACIT (ITAT Bangalore)
According to the Assessee, it was on the basis of professional opinion, under the belief that the issues that were sought to be agitated before the CIT(A) against the order of assessment dated 30.12.2008 could be agitated before the AO in the proceedings pursuant to the order u/s.263 of the Act. But after the Tribunal verdict dated 24.6.2016, it sought proper legal course given the fact that its grievance regarding issues arising from the order of assessment dated 20.12.2008 remains non-adjudicated. On legal advice, the Assessee has sought to file an appeal before the Tribunal, against the order of the CIT(A) dated February 15, 2010. The last day for filing the appeal before the Tribunal against the order of the CIT(A) dated March 09, 2010 was May 07, 2010. The Assessee has filed the subject appeal on July 15, 2017 with a delay of 2625 days (May 08, 2010 to July 15, 2017).
In support of the application to condone delay in filing appeal, one Mr. Marshal Correia, Managing Director of the Assessee has filed affidavit, in which, the facts stated above have been elaborated. The learned counsel for the assessee reiterated the contents of the affidavit as above and has prayed for condonation of delay in filing the appeals. His submission was that in tax matters, substantive rights cannot be denied on the basis of technicalities and a liberal approach should be adopted in the matter of condoning delay in filing appeal. The ld. DR, however, opposed prayer for condoning delay on the ground that the delay is inordinate.
We have given a careful consideration to the rival submissions and we find that it is only on the receipt of Tribunal’s order in the appeal arising out of proceeding subsequent to the order passed by the CIT u/s. 263 of the Act that the assessee came to know that the issues, which were not subject matter of 263 proceedings and which arose out of additions made in the original order of assessment, had to be challenged by way of filing appeals against the order of CIT(Appeals) dated 15.2.2010 for AY 2005-06. The date on which the assessee received the order of Tribunal was on 12.7.2016 for AY 2005-06. The appeal before the Tribunal has been filed only on 14.7.2017. As far as delay from the date of the impugned order passed in the year 2009 till 12.7.2016 is concerned, the belief entertained by the Assessee based on legal advice that the additions made in the original order of assessment can still be challenged in the proceedings pursuant to order passed u/s.263 of the Act, cannot be said to be not bonafide. As far as the delay from the date of Tribunal’s order in the year 2016 till filing of the appeal only in the year 2017, is concerned, it has been submitted in the affidavit that after prolonged discussion and legal advice, it was suggested that the appeals should be filed against the orders of CIT(Appeals) dated 15.2.2010 for AY 2005-06. We are of the view that given the factual scenario and nature of disputes, the plea of assessee that delay in fling of the appeals before the Tribunal was due to bona fide reasons has to be accepted. Keeping in mind the principle that substantive rights should not be denied by technicalities, we condone the delay in filing the appeals before the Tribunal.
FULL TEXT OF THE ITAT JUDGEMENT
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