ITAT Delhi Orders Reassessment of Income Tax Appeal Delay

Keshav Madhav Steel Pvt Ltd Vs ITO (ITAT Delhi)

In the case of Keshav Madhav Steel Pvt Ltd vs. ITO, the Income Tax Appellate Tribunal (ITAT) Delhi addressed a delay of 775 days in filing an appeal due to restrictions imposed during the COVID-19 pandemic. The case pertained to the assessment year 2017-18, where the assessee’s appeal against an assessment order from December 20, 2019, was filed on March 4, 2022. The CIT(A)/National Faceless Appeal Centre (NFAC) had refused to condone the delay, citing insufficient supportive material in the condonation petition.

The ITAT referred to the Supreme Court’s decision in Cognizance for Extension of Limitation (2022) 441 ITR 722 (SC), which mandated the exclusion of the period from March 15, 2020, to February 28, 2022, for limitation purposes due to the pandemic. Based on this precedent, the ITAT found the refusal to condone the delay unsustainable and directed the CIT(A)/NFAC to re-adjudicate the matter. The tribunal emphasized that the assessee must present and substantiate relevant facts during the rehearing process. The appeal was thus restored for statistical purposes, with the order pronounced on November 13, 2024.

FULL TEXT OF THE ORDER OF ITAT DELHI

This assessee’s appeal for assessment year 2017-18 arises against DIN and order no. ITBA/NFAC/S/250/2024-25/1064270206(1), dated 22.04.2024, passed by the learned CIT(Appeals)/ National Faceless Appeal Centre (NFAC), Delhi, in appeal no. NFAC/2016-17/10099953 in proceedings u/s 250 of the Income-tax Act, 1961, hereinafter referred to as the “Act”.

2. Heard both the parties at length. Suffice to say, it emerges during the course of hearing at the outset that the learned CIT(A)/NFAC’s impugned lower appellate discussion has refused to condone delay of 775 days in filing of the assessee’s lower appeal instituted on 4.3.2022 against the Assessing Officer’s assessment framed on 20.12.2019 for the sole reason that the condonation petition did not disclose any sufficient supportive material.

3. Faced with this situation, learned Departmental Representative could hardly dispute the clinching fact that Hon’ble Apex Court land mark decision in Cognizance For Extension Of Limitation in re. (2022) 441 ITR 722 (SC) has already directed the exclusion of the time period from 15.3.2020 to 28.2.2022 of the Covid-19 Pandemic for all limitation purposes. That being the case, I find the approach of learned CIT(A)/NFAC in refusing to condone the impugned delay as not sustainable in law. Ordered accordingly.

4. The assessee’s instant appeal is restored back to CIT(A)/NFAC for its afresh appropriate adjudication preferably within three effective opportunities of hearing subject to rider that it shall be the assessee’s responsibility only to plead and prove all the relevant facts in consequential proceedings.

5. This assessee’s appeal is allowed for statistical purposes in above terms.

Order pronounced in open court on 13.11.2024.