Court can condone delay in Appeal filing if sufficient cause exist

Sri Suhas Suresh Shet Vs ITO (ITAT Bangalore)

In the matter of condonation of delay in filing appeals beyond the limitation period, the courts are empowered to condone the delay, provided the litigant is able to demonstrate that there was ‘sufficient cause’ in preferring appeal beyond the limitation period. The Courts have also held that the expression “sufficient cause” should receive liberal construction so as to advance substantial justice. Hence, the question of condonation of delay is a factual matter and the result would depend upon the facts of the case and the cause shown by the assessee for the delay. It has also been opined that generally delays in preferring appeals are required to be condoned in the interest of justice, where no gross negligence or deliberate inaction or lack of bona fides is imputable to the party seeking condonation of the delay. In view of the foregoing, we are of the view that the assessees have shown sufficient cause for the delay in filing the appeals before the Tribunal. Accordingly, we condone the delay in filing these two appeals before the CIT(A) and remit the entire issue in dispute to decide it on merits to the file of CIT(A) in accordance with law.

FULL TEXT OF THE ORDER OF ITAT BANGALORE

These two appeals filed by the assessee are directed against the different orders of CIT(A)-12, Bengaluru having common dated 22-09-2021, wherein the CIT(A) confirmed the levy of penalty u/s.271(1)(c) of the Income Tax Act [Act] at Rs.13,19,400/- and levy of penalty u/s.271F of the Act at Rs.5,000/-. In these cases, the assessment order was passed ex-parte vide order dt.18-12-2018 latter, the penalty order also passed ex-parte u/s.271(1)(c) and u/s.271F of the Act on 18-12-2018. Consequent to this, the assessee filed appeal before the CIT(A) against these two penalty orders. The appeal against 271(1)(c) was filed before the CIT(A) with the delay of 591 days and the appeal against the order of AO u/s.271 was filed with a delay of 775 days, though these appeals ought to have been filed within thirty days from the receipt of the penalty orders. The assessee filed condonation petition before CIT(A) explaining the reasons for delay with the assessee was a non­resident Indian and he was represented by GPA-holder Smt.Shobha Suresh Shet, the assessee through his mother Smt.Shobha Suresh Shet has engaged professional services of a tax consultant and furnished all the details to the said authorized representative. However, he failed to take any steps towards proper representation of the assessee before the AO or the CIT(A) and hence the assessee was failed to file appeal before the CIT(A) within the time. The assessee, when the notice for hearing came for the AY.2017-18 came and therefore assessment order passed u/s.143(3) of the Act on 27-12-2019, after making various additions. For this assessment year, assessee went for an advice of a tax consultant and he asked for earlier years’ records by that time, assessee came to know about the lapse on the part of the earlier counsel and advised to the present counsel that assessee filed the appeals against penalty orders before the CIT(A). Thus, there caused a delay of 591 days in the case of appeal against the order passed u/s.271(1)(c) and 775 days in the case of order passed u/s.271F of the Act. Further, the AR submitted that these facts were duly explained by the assessee before the CIT(A) in both the cases. However, he rejected the condonation petition holding that there was no reasonable cause for filing these appeals belatedly before him. Accordingly, the Ld.AR prayed that the delay may be condoned and appeal may be admitted.

2. On the other hand, Ld.DR replied on the orders of the lower authorities.

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