Delay in appealing to the Commissioner excused due to demonstrated justifiable cause
General Lifescience Distributors Vs CIT (ITAT Mumbai)
Facts:
- The Assessee appealed against orders dated 11/05/2023 by the Ld. Commissioner of Income-tax for the A.Y.2012-13.
- The Ld. Commissioner upheld the Assessment order dated 27/12/2019 under section 144 read with section 147 of the Income-tax Act and the penalty order dated 21/09/2021 under section 271(1)(c) of the Act.
- The Assessee’s appeal (ITA No.2423/Mum/2023) related to the confirmation of the assessment order.
- Despite filing an appeal, the Assessee failed to appear or justify the 33-month delay in filing before the Ld. Commissioner, resulting in the dismissal of the appeal on the point of limitation.
- The Assessee claimed delay was due to the director’s detention in the United Kingdom and subsequent legal proceedings.
Observations:
- The assessment order was passed ex-parte, and the Assessee’s appeal was dismissed on the grounds of delay in filing before the Ld. Commissioner.
- The Assessee presented an affidavit citing the director’s detention, return to India, and the initiation of proceedings against the company.
- The Ld. Commissioner dismissed the appeal in limine but not on merit, creating scope for proper adjudication.
- The Assessee sought condonation of the delay, highlighting the director’s circumstances during detention and the subsequent legal actions.
- The COVID-19 period and the exclusion of time by the Hon’ble Apex Court were considered factors affecting the limitation period.
Conclusion:
- The Tribunal set aside the ex-parte order and remanded the case to the Ld. Commissioner for a fresh decision on merit.
- The Assessee was directed to deposit Rs. 51,000/- in the Prime Minister’s National Relief Fund (PMNRF) within 30 days.
- The Ld. CIT(A) was instructed to provide a reasonable opportunity to the Assessee, with no leniency in case of further default.
- Similar action was taken in ITA No.2422/Mum/2023, related to the penalty imposition based on the assessment order.
- Both appeals were allowed for statistical purposes.
You must be logged in to post a comment.