Madhya Pradesh Police Housing Corporation Ltd Vs ACIT (ITAT Indore)
The ITAT Indore considered an appeal against the order of the CIT(A)-NFAC dated 17.10.2023 arising from a penalty order passed under Section 271(1)(c) of the Income-tax Act, 1961 for AY 2013-14. The appeal was filed with a delay, and the assessee sought condonation, explaining that it had first pursued rectification under Section 154 before the CIT(A). The rectification applications for AYs 2008-09 and 2013-14 remained pending for about two years before the NFAC. After the rectification applications were disposed of on 16.01.2025, the assessee filed the appeal for AY 2008-09 immediately, while the appeal for AY 2013-14 was inadvertently omitted and was subsequently filed on 30.05.2025 after the omission came to notice. The assessee submitted that the delay was bona fide, unintentional and without mala fide intent.
The Tribunal observed that the Revenue could not rebut the explanation offered by the assessee. It found that the assessee had shown sufficient cause by pursuing an alternate remedy under Section 154 before approaching the Tribunal. Referring to Section 253(5) of the Act and the decisions of the Supreme Court in Collector, Land Acquisition Vs Mst. Katiji and others and Inder Singh Vs. The State of Madhya Pradesh, the Tribunal adopted a justice-oriented approach, condoned the delay, admitted the appeal and proceeded to decide it on merits.
