Jinnagara Eraiah Lakshmidevi Vs ITO (ITAT Bangalore)
Not the Length but the Cause of Delay Matters – 353-Day Delay Condoned, Ex Parte CIT(A) Order Set Aside – ITAT Bangalore
Bangalore ITAT has taken a liberal approach in condoning a long delay of 353 days in filing appeal & set aside an ex parte order passed by CIT(A), restoring the matter for fresh adjudication on merits.
Assessee, an individual hailing from a rural background with limited education, had deposited ₹10.50 lakh in cash during the demonetisation period. The source of deposit was explained as agricultural income. AO, however, rejected the explanation & made addition treating the deposit as unexplained. On appeal, CIT(A) dismissed the case ex parte without considering evidence furnished by Assessee.
When the matter reached Tribunal, there was a delay of 353 days in filing appeal. Assessee explained that due to personal circumstances, including the marriage of her daughter & lack of proper guidance, she could not pursue the matter in time. Tribunal observed that while the delay was indeed long, what mattered was the reasonable cause behind such delay rather than its length. It referred to the ruling of coordinate bench in Prashanth Projects Ltd. vs. DCIT where distinction was drawn between corporate entities & individuals in matters of delay, & emphasized that a pragmatic approach must be taken when dealing with cases of individual taxpayers.
