Gandharv Singh Vs ITO (ITAT Agra)
The ITAT Agra bench considered the appeal filed by Gandharv Singh against an order from the Commissioner of Income-tax (Appeals), NFAC, Delhi, which had dismissed the taxpayer’s initial appeal ex parte for the Assessment Year 2017-18. The primary point of contention was the CIT(A)’s rejection of the taxpayer’s request to condone a delay of just nine days in filing the first appeal against the assessment order dated December 30, 2019. The taxpayer contended that the delay was minor and occurred because all relevant documents, handed over to his Authorized Representative (AR) in time, were subsequently misplaced at the AR’s office, leading to the filing on February 13, 2020. Arguing against the ex parte dismissal, the taxpayer asserted that the denial of condonation was an error that precluded a hearing on the merits of the case. The ITAT reviewed the records and the arguments presented by both the taxpayer’s representative and the departmental representative.
The Income Tax Appellate Tribunal ultimately overruled the CIT(A)’s decision, emphasizing that substantial justice should not be denied due to technical aberrations. The Tribunal articulated that the procedure’s purpose is to advance justice, and in an adversarial system, parties should generally not be denied the opportunity to participate. Given the minor nine-day delay and the reason provided by the taxpayer—misplacement of papers by the AR—the ITAT found it appropriate to condone the delay. Accordingly, the ITAT set aside the impugned order dated January 16, 2024, and remitted the matter back to the CIT(A) for a fresh hearing and adjudication on its merits. The Tribunal concurrently directed the taxpayer to be diligent, cooperative, and refrain from seeking unnecessary adjournments to ensure the expeditious disposal of the matter, while also instructing the CIT(A) to ensure observance of the principles of natural justice. The appeal was thus allowed for statistical purposes.
