Kawal Preet Kaur Vs Assessment Unit (ITAT Lucknow)
Mechanical rejection of delay frowned upon: ITAT Lucknow restores appeal dismissed by NFAC
Lucknow ITAT set aside the order of the CIT(A), NFAC which had dismissed the Assessee’s appeal as time-barred, and restored the matter for adjudication on merits.
The Assessee’s appeal before the CIT(A) was delayed by 148 days, which was explained on the ground of medical exigency supported by a medical certificate. The CIT(A), however, rejected the condonation application, branding the medical certificate as fabricated, without conducting any independent verification, and dismissed the appeal without examining the issues on merits.
Before the Tribunal, the Assessee’s appeal itself was delayed by only two days, which the ITAT condoned, noting that the delay occurred due to technical glitches in the e-filing process, including non-receipt of OTP, a contention not rebutted by the Revenue.
The Tribunal held that the CIT(A) adopted a mechanical and presumptive approach, rejecting the explanation for delay without any inquiry into the genuineness of the medical evidence, thereby violating the principles of natural justice. Given the substantial additions involved (₹1.93 crore on account of alleged unexplained deposits), the ITAT held that the matter deserved to be examined on merits rather than being shut out on technical grounds.
Accordingly, the ITAT set aside the impugned order and restored the appeal to the file of the CIT(A) with a direction to verify the correctness of the medical claim and thereafter decide the appeal afresh on merits after granting due opportunity to the Assessee. The appeal was allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT LUCKNOW
