INCOME TAX ACT, 1961

Section 253(5)

Appeal (Tribunal) - Condonation of delay - Bona fide mistake -

Cross-objection filed by assessee were time barred by 212 days. Assessee filed application as well as affidavits explaining that assessee was granted the exemption under section 11 in the original assessment framed under section 143(3). However, later on assessment was re-opened under section 147 and said exemption was denied by AO in the order passed under section 143(3) read with section 147. In the appeal, CIT(A) decided the legal ground regarding validity of re-opening in favour of assessee and held the assessment to be null and void ab-initio. However, on merits, CIT(A) held that assessee was not entitled to exemption under section 11. The said order was received by Accounts Officer of assessee, who was not conversant with income tax matters, and he remained under bona fide impression that since the matter was decided in favour of the assessee on issue of re-opening, there was no necessity to take any further action by assessee, and hence, he did not inform anyone about the order. Department filed appeal before ITAT and it was fixed for first hearing. At that time, when relevant papers were handed to advocate, it was realized and advised that assessee was required to file cross objection on merits of appeal and it was immediately drafted and filed before ITAT resulting in a delay of 212 days. Held: As apparent, there was no deliberate attempt at the end of assessee to delay challenge to orders of CIT(A) on merit. Assessee would not gain anything by delaying filing of cross-objections or by making challenge to the order of CIT(A). Thus, it could not be seen as a delay strategy rather it happened on account of bona fide mistake. Therefore, application for condonation of delay was allowed.

REFERRED :

FAVOUR : in assessee's favour

A.Y. : 2009-10 & 2010-11

INCOME TAX ACT, 1961

Section 147

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