Case Law Details
Marathon India Ltd. Vs PCIT (ITAT Jaipur)
ITAT Jaipur held that ignorance of law and bona fide belief cannot be termed as sufficient cause and hence condonation of delay in filing of an appeal not granted.
Facts- The assessment of the assessee was completed u/s. 143(3) of the Income Tax Act. Subsequently, Pr.CIT examined the assessment order and observed certain contradictions in the claim of deduction u/s. 80IE on the part of the assessee and foundthe same is not verifiable/allowable and the AO has allowed the same in the assessment proceedings .Thus the Pr.CIT held that the order erroneous as well as prejudicial to the interest of the revenue.
Notably, there is a delay of 324 days in filing of an appeal and accordingly condonation was prayed.
Conclusion- Held that the assessee is a limited company and assisted by a number of professionals including legal experts and they had been engaged in the litigation with Revenue Deptt. at different stages before different forums and non-filing of appeal against the impugned order u/s. 263 of the Act because of ignorance of law and bona fide belief cannot be termed as ‘’sufficient cause’’ as explained under Section 5 of the Limitation Act.
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