ITAT Dismisses Appeal Due to absence of Reasonable cause for 726-Day Delay

Sunderlal Vs DCIT (ITAT Chennai)

The case of Sunderlal Vs DCIT (ITAT Chennai) revolves around an appeal arising from the order of the Commissioner of Income Tax (Appeals)-18, Chennai. Despite efforts to condone a significant delay, the appeal was ultimately dismissed due to unexplained reasons.

The appeal, which should have been filed within a specific timeframe, was significantly delayed by 726 days. The petitioner attributed this delay to the impact of the Covid-19 pandemic on their family, leading to a loss of track regarding the appellate order. However, upon scrutiny, the Tribunal found the explanation lacking in substantial evidence. The absence of supporting materials, such as medical certificates, cast doubt on the authenticity of the claim. Moreover, the petitioner’s failure to file the appeal despite multiple opportunities further weakened their case.

During the proceedings, the petitioner’s counsel attempted to justify the delay by citing the period during which the return of income for the assessment year 2022-2023 was filed. However, this argument was deemed insufficient by the Tribunal, as it failed to address the specific circumstances surrounding the delayed filing of the appeal.

In light of the aforementioned factors, the Tribunal concluded that there was no reasonable cause to condone the substantial delay in filing the appeal. Consequently, the appeal of the assessee was dismissed as un-admitted. This case underscores the importance of timely compliance with legal procedures and the necessity of providing substantial evidence to support claims of delay.

FULL TEXT OF THE ORDER OF ITAT CHENNAI

This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals)-18, Chennai in ITA No.205/CIT(A)-18/2018-2019, dated 31.08.2021 The assessment was framed by the Deputy Commissioner of Income Tax Officer, Central Circle 1(4), Chennai for the assessment year 2017-2018 passed u/s.143(3) of the Income Tax Act, 1961 (in short ‘’the Act’) vide order dated 30.12.2018.

2. At the outset, it is noted that the appeal is time barred by 726 days. The order of the ld. CIT(A) is dated 31.08.2021 and assessee has disclosed the date of service of the impugned order on 07.09.2021 as per form no.36. Assessee filed condonation petition supported by affidavit and relevant affidavit reads as under:-

‘’1. I am the petitioner herein and I am fully acquainted with the facts of the case leading to and relating to the present petition.

2. I have filed the above appeal against the order of the Commissioner of Income tax (Appeals)-18, Chennai dated 31.08.2021 Viz during the Covid period. I and my family members were affected by Covid during this period and therefore lost track of the first appellate authorities order.

3. It was only when I approached the auditor for finalizing my tax return for the AY:2023-24 in the month of September 2023, I realised that the first appellate authority had dis-posed the appeal for the AY:2017-18 and I had not preferred an appeal. I immediately searched for the orders of the fist appellate authorities order and found the same during the first week of October 2023. I immediately contacted my authorised representative, prepared the appeal and filed the same on 25.10.2023.

4. The appellant submits that it has no knowledge when it had received the first appellate authorities order since the family members were affected by Covid during that period, However, if the date of order is considered as the date of receipt of order the appeal should have been filed well before by 30.10.2021 but however the appeal was filed on 01.11.2023 with a delay of 731 days.

5. It is therefore prayed that the Hon’ble Tribunal may be pleased to con-done the delay of 731 days in filing the appeal before the Income Tax Appellate Tribunal and render jus-tice”.

3. Now, the ld. Counsel for the assessee before me stated that assessee family members were affected during covid period and lost to track the first appellate order i.e. impugned order and hence could not file the appeal within the limitation period. It was admitted that when assessee was finalizing the return of income for assessment year 2023­-2024 in the month of September, 2023, he realized that appeal is not preferred. Hence there was a delay. When this was confronted to the ld. Senior Departmental Representative, he stated that assessee might have filed return of income for the assessment year 2022-2023 also in the month of July, August and September, 2022 and that point of time assessee could have filed the appeal. When this was confronted to the ld. Counsel for the assessee he could not answer anything. I have gone through the reasons stated by the Counsel now and contents of affidavit and supporting condonation petition. I find no reasonable cause as it seems that this is a cooked story and assessee could not file any supporting materials like medical certificate i.e. family members were affected by covid per and for how long. Even otherwise there is a long delay of 726 days which was not properly explained. Since there was no reasonable cause, I am not inclined to entertain the condonation plea and dismiss the same. Therefore, I dismiss the appeal of the assessee as un-admitted.

4 In the result, the appeal of the assessee in ITA No.1224/Chny/2023 for assessment year 2017-2018 is dismissed as un-admitted.

Order pronounced in the open court at the time of hearing on 21^st day of February, 2024, at Chennai.