Redstone Textile Private Limited Vs Asst. CIT (ITAT Delhi)
ITAT Delhi condones 450-day delay in Redstone Textile’s appeals, remands case to CIT(A) after citing former consultant’s oversight and non-receipt of notices.
New Delhi: In a significant decision regarding procedural fairness in tax litigation, the Income Tax Appellate Tribunal (ITAT), Delhi bench, has overlooked a considerable delay of 450 days in the filing of multiple appeals by Redstone Textile Private Limited. The tribunal accepted the taxpayer’s explanation that the delay was unintentional, primarily stemming from the oversight of their former tax consultant and issues in receiving timely communication from the tax authorities. The case has now been sent back to the first appellate authority for a fresh examination on the merits.
The matter before the ITAT involved appeals filed by Redstone Textile Private Limited challenging several identical orders passed by the Commissioner of Income Tax (Appeals) [CIT(A)]-53, Mumbai. These orders, all dated September 13, 2023, pertained to the assessment of income for five different assessment years: 2014-15, 2015-16, 2016-17, 2017-18, and 2018-19. The assessments themselves were completed under the provisions of Section 153C of the Income Tax Act, 1961, which deals with the assessment of income for persons other than those against whom a direct search operation under Section 132 is conducted, but where books of account, documents, or assets belonging to such other person are found during the search.
