Lalit Aggarwal Vs ITO (ITAT Delhi)
The appeal was filed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), dated 09.12.2025, which declined to admit the assessee’s appeal due to a delay of 1,208 days. The appeal arose from a penalty order dated 12.01.2022 passed under Section 271B of the Income Tax Act, 1961, relating to Assessment Year 2012-13.
The Assessing Officer had completed the assessment under Sections 147/144 on 07.12.2019 and initiated penalty proceedings under Section 271B for failure to get the accounts audited as required under Section 44AB. A penalty of ₹1.50 lakh was imposed on the ground that the assessee’s turnover exceeded the prescribed threshold under Section 44AB.
Before the Tribunal, the assessee submitted that serious matrimonial disputes, a pending divorce petition before the Family Court, and other legal proceedings caused severe mental distress, preventing timely filing of the appeal. The assessee also relied on the Supreme Court’s suo motu orders extending limitation during the COVID-19 pandemic and contended that the delay was neither intentional nor deliberate.
The Tribunal observed that the Supreme Court had extended the limitation period up to 31.05.2022 in Suo Moto Writ Petition (Civil) No. 03/2022, and therefore the delay attributable to the COVID-19 period was liable to be excluded. For the remaining period, the Tribunal found merit in the submission that the assessee was preoccupied with family disputes and was mentally disturbed. It also noted that no explanation for the delay had been placed before the CIT(A).
