AVA Resources Private Limited Vs DCIT (ITAT Delhi)
ITAT Delhi held that delay of 35 days in filing of an appeal before CIT(A) ought to be condoned since assessee has explained the sufficient reason for said delay. Accordingly, matter restored back to CIT(A) for fresh consideration.
Facts- An assessment order was passed on 18/03/2024 u/s 147 read with Section 144B of the Income Tax Act, 1961 at Rs. 11,20,96,009/- as against retuned income of Rs. 76,74,880/-. Aggrieved by the assessment order dated 18/03/2024, the Assessee preferred the Writ Petition before the Hon’ble High Court of Delhi. The said Writ Petition has been allowed to withdraw by the Hon’ble High Court of Delhi subject to rights and contention being kept open to be addressed in appropriate proceedings that may be instituted. After the disposal of the said Writ Petition, the Assessee preferred an Appeal before the Ld. CIT(A) with a delay of 35 days in filing the Appeal before CIT(A). CIT(A) dismissed the Appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that it is seen from the order of the Ld. CIT(A) that there was a delay of 35 days in filing the appeal and the Assessee filed an application for condoning the delay contending that the Assessee had challenged the action of the Department before the Hon’ble High Court of Delhi in W.P. No. 7057/24 and the delay in filing the Appeal was not intentional, but for the bona-fide reasons. However, the Ld. CIT(A) dismissed the Appeal filed by the Assessee on the grounds of delay in latches. In our opinion, the Assessee has explained the sufficient reason for condoning the delay of 35 days in filing the Appeal before the Ld. CIT(A). The Ld. CIT(A) ought to have condoned the delay of 35 days in filing the Appeal and should have decided the Appeal on its merits. Thus, we condone the delay of 35 days in filing the Appeal before the Ld. CIT(A) and restore the matter to the file of the Ld. CIT(A) to decide the Appeal of the Assessee afresh in accordance with law after providing opportunity of being heard to the Assessee.
