|The Tax Publishers2021 TaxPub(DT) 0033 (Bang-Trib)
INCOME TAX ACT, 1961
Delay of 738 days in filing the appeal before CIT(A) was condonable as there was no willful omission or negligence on the part of assessee and assessee was under bona fide belief that assessment order would be amended raising the demand and thereafter only an appeal needs to be filed.
Appeal [CIT(A)] - Condonation of delay - Bona fide belief of assessee -
AO had kept in abeyance the recovery of tax raised in the assessment order in view of the Department's appeal pending on identical issue before the Apex Court. According to assessee, since the demand raised was kept in abeyance, an appeal was not filed within the time limit prescribed, because assessee was under bona fide belief that assessment order would be amended raising the demand and thereafter only an appeal needs to be filed. However, later, when AO threatened with recovery proceedings, an appeal was filed before CIT(A) with a delay of 738 days. CIT(A) did not condone the delay filing the appeal and the appeal was dismissed in limine without adjudicating the issues raised on merits.Held: Since the delay in filing the appeal before CIT (A) was solely on account of the clear statement by AO that the demand raised in the assessment order would be kept in abeyance till the final decision was taken by the Apex Court. There was a bona fide reason and cause due to which cross- objections could not be filed on time and delay was caused which could not be attributed as willful omission or negligence on the part of assessee. Therefore, the application for condonation of delay in filing the appeal was allowed.
REFERRED : N. Balakrishnan v. M. Krishnamurthy (1998) 7 SCC 123 : 2008 TaxPub(EX) 1737 (SC), Collector, Land Acquisition v. Mst. Katiji& Others (1987) 167 ITR 471 (SC) :1987 TaxPub(DT) 1279 (SC), Concord Of India Insurance Co. Limited v. Nirmala Devi & Others (1979) 118 ITR 507(SC) : 1979 TaxPub(DT) 1020 (SC), Mela Ram And Sons v. CIT (1956) 29 ITR 607 (SC) : 1956 TaxPub(DT) 129 (SC), MrThunuguntlaJagan Mohan Rao v. Dy. CIT (2020) 427 ITR 204 (Telangana) : 2020 TaxPub(DT) 3277 (Tela-HC), ITO v. Vishu Impex Pvt. Ltd. [ITA No. 2765 and 3703/Del/2011 dated 31-12-2015], Perfect Scale Company Pvt. Ltd v. Dy. CIT 2014 TaxPub(DT) 58 (Mum-Trib) andf Phoenix Mills Ltd. v. Asstt. CIT [ITA No. 6240/M/2007, dt. 23-3-2010].
FAVOUR : In assessee's favour.
A.Y. : 2014-2015
IN THE ITAT, BANGALORE BENCH
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