Chandrakant Babaladas Patel Vs ACIT (ITAT, Mumbai)
1,289 Days Late, Yet Not Too Late for Justice – Mumbai ITAT Condones Huge Appeal Delay; Non-Communication of Tax Orders Constitutes Sufficient Cause
Summary: The assessee’s appeals before the CIT(A) were delayed by a whopping 1,289 days in the quantum proceedings u/s 153A r.w.s. 144 & 1,166 days in the penalty proceedings u/s 271F. The CIT(A) refused to condone the delay & consequently dismissed both appeals without adjudicating them on merits.
The assessee explained that after the search, his employer was handling his tax affairs, and the mobile number & email ID linked with his Income-tax profile belonged to the employer. Consequently, the notices & orders issued by the Department were not effectively communicated to the assessee, and he came to know about the proceedings only subsequently, after which steps were taken to obtain the orders & file appeals.
The Mumbai ITAT held that an explanation for delay cannot be rejected merely because the delay is substantial. Considering the peculiar circumstances, non-communication of the orders & the employer’s role in handling the tax matters, the Tribunal held that the assessee had demonstrated “sufficient cause warranting condonation of delay”.
Accordingly, the ITAT condoned the delays of 1,289 & 1,166 days, set aside the CIT(A)’s orders & restored both appeals for fresh adjudication on merits, including all legal & jurisdictional grounds, after providing an effective opportunity of hearing. The Tribunal, however, expressly clarified that it had not expressed any opinion on the merits of the quantum addition or the penalty u/s 271F.
