Society for Education and Welfare Awareness Vs DCIT (ITAT Lucknow)
CIT(A) Directed to Decide Adjustment Under Section 143(1) on Merits
The Lucknow Bench of the ITAT partly allowed the assessee’s appeal for statistical purposes and set aside the order of the CIT(A) which had dismissed the appeal solely on the ground of limitation without examining the merits.
The assessee’s return for A.Y. 2019-20 was processed under Section 143(1), resulting in an adjustment/addition. The CIT(A) refused to admit the appeal by declining condonation of delay under Section 249(3). Before the ITAT, the assessee explained that the delay occurred because it had initially pursued rectification under Section 154 within time, and upon realizing that appeal was the appropriate remedy, promptly filed the appeal—demonstrating absence of negligence or mala fides.
The Tribunal held that the explanation constituted “sufficient cause”, warranting a liberal approach to advance substantial justice, and relied on settled precedents (including Collector, Land Acquisition v. Mst. Katiji). Accordingly, the ITAT directed the CIT(A) to condone the delay and adjudicate the appeal on merits after granting reasonable opportunity of hearing.
FULL TEXT OF THE ORDER OF ITAT LUCKNOW
(A) This appeal vide I.T.A. No.516/Lkw/2024 has been filed by the assessee for Assessment Year 2019-20 against impugned appellate order dated 24/06/2024(Appeal No.ITBA/APL/S/250/2024-25/1065960585(1)of Commissioner of Income Tax (Appeals), Mumbai [“CIT(A)” for short].
