Saida Trading Co Vs ITO (ITAT Cochin)
The Income Tax Appellate Tribunal (ITAT) Cochin, in the case of Saida Trading Co. vs. Income Tax Officer (ITO), has dismissed an appeal for Assessment Year 2015-2016 due to an inordinate delay of 1,233 days in filing. The ITAT ruled that the taxpayer’s stated inability to contact the individual required to sign appeal documents, attributed to their absence from the station, did not constitute a reasonable cause for the delay.
The condonation application, submitted on a Chartered Accountant’s letterhead without a supporting affidavit, was deemed insufficient. The Tribunal emphasized that the power to condone delay cannot be exercised to frustrate the substantial law of limitation.
Citing judicial precedents, including the Supreme Court’s recent ruling in H. Guruswamy Vs. A. Krishna (Civil Appeal No. 317 of 2025), the ITAT reiterated that while considering condonation, the facts of the case and the cause behind the delay are crucial. Reference was also made to Mool Chandra v. Union of India (2024 SCC OnLine SC 1878), which held that the cause, not the length of the delay, is paramount. Additionally, the ITAT recalled Commissioner, Nagar Parishad, Bhilwara v. Labour Court, Bhilwara (2009) 3 SCC 525, which highlighted the need for a liberal and justice-oriented approach if no fault can be attributed to the appellant.
