Hydroair Tectonics PCD PCD Limited Vs ACIT (ITAT Mumbai)
Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has condoned a significant delay of 937 days in an appeal filed by M/s Hydroair Tectonics PCD Limited for the assessment year 2018-19. The Tribunal’s decision, pronounced today, emphasizes the principle of prioritizing substantial justice over technicalities, particularly in light of the challenges posed by the COVID-19 pandemic and the advanced age of the company’s directors.
The case arose after the assessee’s appeal was dismissed by the National Faceless Appeal Centre, Delhi (NFAC), due to being filed beyond the statutory limitation period. Prior to this, the assessee had also been ex-parte before the Assessing Officer.
In its application for condonation of delay, Hydroair Tectonics PCD Limited presented an affidavit detailing the reasons for the prolonged delay. The company explained that its two directors, both aged 81 years, are super senior citizens with declining health. They stated that they have been the sole directors since the company’s inception in 2001, with no other key managerial personnel. The company’s operations, including inward and outward communications, were largely managed by a few support staff, with the directors’ direct involvement being limited.
A crucial aspect of their explanation centered on the impact of the COVID-19 pandemic. The directors affirmed that during 2020-21 and 2021-22, they were advised by doctors and government advisories to remain confined to their homes, preventing them from attending the office regularly. Their staff also primarily worked remotely during this period. Consequently, notices of hearing received via company email were not forwarded to or brought to the attention of the directors. Even a notice reportedly delivered in person to a junior staff member on March 12, 2021, did not reach the directors, leaving them unaware of the scrutiny proceedings or the subsequent assessment order.
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