Indrawati, Haryana V. ITO,Ward-2, Panipat

ITA 1425/DEL/2022

AI Insights

The appeals filed by the assessee, Indrawati, against the orders of the Commissioner of Income Tax (Appeals) were consolidated and heard together. The primary contention was the dismissal of the appeals by the CIT(A) on the grounds of delay without considering the merits of the case. The Tribunal noted the procedural lapses and the lack of opportunity given to the assessee to explain the delay. Emphasizing the principles laid down by the Supreme Court regarding the condonation of delay, the Tribunal found that the delay was justifiable under the circumstances, particularly due to the pandemic and the appellant's background. Consequently, the Tribunal restored the appeals to the CIT(A) for a fresh examination on merits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121575 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 18-04-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 15-06-2022
• Other Referred Cases: Collector, Land Acquisition vs. Mst. Katiji, N. Balakrishnan vs. M. Krishnamurthy, Vijay Vishin Meghani vs. DCIT, CIT vs. Ghanshyam
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 250; 201; 43; 48

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C” DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.As No.1425 & 1426/DEL/2022 Assessment Years 2017-18 & 2018-19 Indrawati, Nagal Kheri, Panipat. v. Deputy Commissioner of Income Tax, Central Processing Centre, Bangalore. TAN/PAN: AAFPI4486N (Appellant) (Respondent) Appellant by: None Respondent by: Shri Anuj Garg, Sr.DR Date of hearing: 19 04 2023 Date of pronouncement: 19 04 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: The capt io ned appeal s ha ve been f il ed b y t he Ass essee agai nst t he or ders of t he C o mmi ssioner of In co me Tax ( Appeal s) NFA C, Del hi ( ‘CI T( A) ’ i n short ) bot h dat ed 19.0 4.2 022 arisi ng fro m t he assess ment or der s bot h dat ed 18. 08. 2020 pas sed b y t he Assessi ng Of ficer (AO ) un der S ecti on 154 of t he I nco me Tax Act , 19 61 (t he Act) concer ni ng AYs 2017-18 and 2018- 19 respecti vel y. 2. The appeals were hear d t oget her a nd are bei ng disposed of b y wa y of t his consoli dated orde r. 3. The gr oun ds of a ppeal raised b y t he assessee conce rni ng I.T.As No.1425 & 1426/Del/2022 2 Assess ment Yea r 201 7- 18 i n I TA N o.1 425/ De l/ 2022 is repr oduced he reunder : “1 . Th at t he N at i o na l Fa c e l e s s A p pe a l C e nt r e / C o m m i ss i o n e r of I nc o m e T ax (A p pe a l s ) [ C I T (A )] e r r e d o n f ac t s an d i n l a w i n d i s m i s s i n g t he ap pe a l f i l e d by th e A p pe l l a nt o n l y on t h e g r o un d of d e la y in fi l i n g o f a p p e al ag a i n s t t he i nt i m a t i o n / o rde r pa s s e d by t he C e nt r a l i z e d P r oc e s s i n g C e n t r e , B a n ga l or e ( 'C P C ' ] in i nt i m at i o n i s s u e d un de r s e c t i on 14 3 ( 1 ) o f t he I n c o m e T ax A c t , 1 9 6 1 ( ' t h e A c t ' ). 2 . Th at t h e C I T ( A ) e r r e d o n f ac t s a n d in l a w i n n ot a f f or d i n g a de q ua t e o p p or t un i t y t o t he A p p e l l a nt f o r e x p l a i n i ng t h e r e a s o n i n d e ta i l f o r de l a y i n f i l i n g of a pp e a l a n d t h e r e f o r e t h e i m p u gn e d or d e r i s p e r v e r s e f o r b e i ng v i ol a t i v e o f P r i n c ip l e s o f N at ur al J u s t i c e . 3 . Th a t t h e C I T ( A ) e r r e d o n f a c t s an d i n l a w i n no t a p p r e c i at i n g t h at t h e a p pe l l a nt i s a h u m b l e r ur al a gr ic u l t ur is t / f a r m er L a dy , n e it h e r h av i n g a ny f or m a l e d uc a t i o n al q u a l i f ic a t i on no r an y t ax a b l e i nc o m e f o r t he y e a r un d e r c on s i d e r a t i o n a n d h ad n o w i l lf u l or de l i b e r at e i n te n t i o n f o r d e l ay i n fi l i n g of ap pe a l ; t he r e f o r e a d o p t i n g o f hy p e r t e c hn i c al a p p r o a c h t o av o i d s u b s t an t i v e j u s t i c e by C I T (A ) i s c o nt r a r y t o t h e la w o f l an d l a i d d ow n b y t he H o n 'ble S u p r e m e C ou r t i n t he c a s e of C o ll e c t o r , L a n d A c q u i s i t i o n v s . M s t . K a t i j i (1 98 7 ) 2 S C C 10 7 ; N . B a l ak r i s hn a n v s . M. K r i s h n a m u r t h y ( 1 99 8) 7 S C C 12 3 ; V i j ay V i s h i n Me g ha n i v s . D C I T 39 8 I T 2 5 0 ( B o m ). 4 . T ha t t h e C I T (A ) , ha s di s m i s s e d t h e a p pe a l w i t ho ut g iv i n g a ny f i nd i n g o n t h e m e r i t s of t he c a s e , an d m e r e l y o n the gr o u nd o f d e l ay i n fi l i n g a n ap p e a l , i t i s r e s p e c t f ul l y s u bm i t t e d , t h a t t h e o r d e r p as s e d b y t he C I T (A ) , i s l i a bl e t o be s e t - a s id e o n t h i s c o u n t i t s e lf . 5 . Th a t t h e C I T ( A ) e r r e d o n f a c t s an d i n l a w i n no t a p p r e c i at i n g t h at t h e ad j us t m e nt s pe r m it t e d un d e r t he s e c t i o n 14 3 ( 1 ) a r e (a ) a ny a r i t h m e ti c a l e r r o r i n t he r e t u r n ; a nd (b ) a n i n c o r re c t c l a i m a pp a r e nt f r o m an y i nf o r m a t i on i n t he r e t ur n . F u r t h er , E x p l a n at i o n t o s e c ti o n 1 4 3 ( 1 ) o f t h e A c t d e f i ne s " a n i n c or r e c t c l a i m a pp a r e nt f r o m a ny i n fo r m at i o n i n t h e r e t u r n" t o , i nt e r - al i a , m e a n ( i ) i n c o n s i s t e nt e n t r i e s w i t h i n t h e r e t u r n ; ( i ) n o n - f u rn i s h i n g of r e q u ir e d i n fo r m at i o n i n s u p p or t o f e n t r y (ie s ) i n r e t u r n ; an d (i i i ) c l a i m o f d e du c t io n i n e x c e s s of s p e c i f ie d s t a t ut o r y l i m i t . 6 . Th a t t h e C I T ( A ) e r r e d o n f a c t s an d i n l a w i n no t a p p r e c i at i n g t h at t h e C P C ha s gr o s s ly e r r e d i n i n v ok i n g p r ov i s i o n s o f s e c t i o n 14 3 ( 1 ) f o r m ak i n g a dd i t i on o f R s . 19 , 86 , 1 9 8 w h i c h i s c le a rl y i ll e g al a nd in e x c e s s o f i t s j ur i s di c t i on a n d th e r e f o r e t h e i nt i m at i on i s s ue d u nd e r s e c t i o n 1 43 ( 1 ) of t h e A c t by C P C d e s e r v e s t o b e qu as he d / s e t a s i de . 7 . Th a t t h e C I T ( A ) e r r e d o n f a c t s an d i n l a w i n no t a p p r e c i at i n g t h at I.T.As No.1425 & 1426/Del/2022 3 n o r e qu i s i t e e nq u i r y w a s c o n du c t e d b y t h e A s s e s s i n g O f f i c e r w hi l e d i s al l o w i n g t h e e x e m pt i o n u n de r s e c t i o n 1 0 ( 3 7 ) o f th e A c t a n d a c c o r d i n g l y , t h e a d d i t i on m a d e i s i l le g a l . 8 . T ha t t h e C I T (A ) e r r e d i n n o t f o l lo w i n g t h e b i n din g p r i nc i p l e l a i d d ow n by t h e H o n ' bl e Su pr e m e C ou r t i n t he c a s e o f C IT v s . G h a ns h y a m : 31 5 I T 1 a nd i n v a r i ou s o t h e r j u dg e m e n ts s q ua r e l y a pp l i c a b l e t o t h e f ac t s o f t he c a s e o f t h e A p pe l l a nt h e r e i n. 9 . Th e A p p e l l a n t c r a v e s l e av e t o ad d to al t e r , a m e nd o r v a r y t he a f or e s ai d g r ou nd s o f ap p e a l b e fo r e o r a t t he t i m e of he a r i n g. ” 4. When the mat ter was cal led f or hea ri ng, none a ppear ed f or the assessee. The mat t er was accordi ngl y pr oceeded ex- par te. 5. The l d. Sr. DR for t he Reve nue rel ied upon t he order of the CIT( A) . 6. On per usal of the fir st appel late or der, i t i s straightawa y obser ved t hat t he CIT( A) has dis mi ssed t he fi rst a ppe al i n l imine on t he gr ound t hat t he appeal fi le d b y t he assessee bef ore i t is bel ated, i . e. , 48 da ys del a y w it hout givi ng a n y re ason. It is not iced t hat t he i mpugne d fir st appell ate or der was i nst it ut ed on 5 t h N ove mber , 202 0 as against the dat e of or der appealed agai nst of 18. 08. 2018. It i s clai med i n t he gr ounds of a ppeal t hat the CIT( A) has not pr ovi ded a n y adequat e opport un it y t o t he assessee f or ex plaining the reas ons f or del a y in f il i ng t he app eal. As fur the r poi nt ed out t he assessee is f rom a hu mbl e bac kgr ound a nd a rural agri cul turist / far mer l ad y a nd nei ther the assessee possess an y for mal educati onal qual if icat ion nor an y taxabl e inc o me was ea rne d duri ng t he year under consi derat i on and t her efor e, no ma la fi de can be i mput ed f or s mal l dela y i n fi l ing fi rst appeal b y a dopti ng h yper t echnical app roach. A ref er ence t o the judg ment s i n the case of Coll ector, I.T.As No.1425 & 1426/Del/2022 4 Land Acqui sit ion vs. M st. Kat ij i, (1987) 2 SCC 107; N. Bal akri shnan vs. M . Kri shnamurt hy, (1998 ) 7 SCC 123 and Vi jay Vi shi n M eghani Vs. DCIT, 398 ITR 250 (B om). 7. Ther e can be nu mer ous occasi ons faced b y a tax pa yer/ li t igant w here he i s unable t o exerci se hi s ri ght for fi li ng app eal wit hi n the per i od prescri bed i n t he statute. One such undi sputabl e reas on i s fi er y pandemi c which was a long haul at the r el evant t i me and e nt ir e 2 020 was engulf ed t o an unprecedente d scal e. The cale ndar year of 2020 bei ng t rau mat i c be yond hu man c o mprehension, a s mall del a y of f ew mont hs shoul d be r eckoned be nig nl y pa r t icul arl y w her e no seri ous prejudice has caused t o t he Revenue b y such del a y. It i s t ri t e that t he act i on of the St at e w hi ch result in civi l conseq uences must met t he test of r easonabl enes s. A s mal l del a y of 48 da ys cannot b y an y me ans be bra nde d as col ossal del a y resul t ing i n prejudice to t he other side. The suffi ci ent ca use cont e mplat ed under Sect i on 249(3) of t he Act i s i mpl ici t i n t he pande mi c ye ar. We t hus fi nd that assessee has reasona ble expl anat ion i n offer havi ng r ega rd t o the ba ckgr ound of t he assessee as wel l as the ongoi ng pande mi c at the rel evant ti me. The H on'bl e Supre me Court i n the case of C oll ector of l and ac quisi ti on vs. M st . Katiji & O rs. 167 I TR 471 (SC ) has l ai d dow n the gui di ng pri nci pl es for adopt i ng a li ber al appr oac h i n t he mat ter of condonat i on of del a y. T he pr i nci ples l aid down b y t he Hon' ble Su preme C our t ar e repr oduced he reunder : " 1 . O r d i n a r i l y , a l i t i g an t d oe s n ot s t an d t o b e ne f it by lo d gi n g a n a pp e al l a t e . I.T.As No.1425 & 1426/Del/2022 5 2 . R e f us i n g t o c o n d o n e de l a y c an r e s ul t i n a m e r i t or i ou s m at t e r b e i ng t h r o w n ou t a t t he v e r y th r e s h o l d a n d c a us e o f j u s t i c e b e i n g d e f e a t e d. A s a ga i ns t t h i s , w h e n de l a y i s c o nd o ne d , t h e h i g h e s t t h at c an h a pp e n i s t ha t a c au s e w o ul d b e de c i de d on m e r i t s af t e r h e ar i n g t he p ar ti e s . 1 . " A n y a pp e a l o r a n y a pp l i c at i o n , o t h e r t ha n a n ap p l i c a t i o n u nd e r a ny o f t h e pr o v i s i o ns o f O r d e r X X I o f th e C o de o f C i v i l P r o c e du r e , 1 9 08 , m ay b e a dm i tt e d a f t e r t h e p r e s c r i be d p e r i od i f t h e ap p e l la n t or t h e ap pl i c a nt s at i s fi e s t he c o u r t t h at h e h ad s u f f i c ie n t c a u s e f o r no t p r e f e r r i n g t he a pp e al o r ma k i n g t he a pp l i c at i o n w i t hi n s u c h p e r i o d . " 3 . " E v e r y d a y 's d e l ay m u s t b e e x pl a i n e d " d oe s n o t me an t h at p e da nt i c a p pr o a c h s ho ul d b e m a de . W h y no t e v e r y h our ' s d e la y , e v e r y s e c on d 's d e la y ? T he do c t r i n e m us t b e a p p l i e d i n a r a ti o n al , c o m m o n s e n s e an d p r a gm at i c m a n ne r . 4 . W h e n s u bs t a n t i a l j u s t i c e a n d t e c hn i c al c on s i d e r at i o n s a re p i t te d a g a i n s t e a c h o th e r , t h e c a us e o f s u bs ta n ti a l j us t i c e d e s e r v e s t o be pr e fe r r e d, f or t h e o t he r s i d e c a nn ot c l ai m t o h av e v e s t e d r i g ht i n i nj u s t i c e b e in g do n e be c a us e of a non - de l i b e r at e d e l ay . 5 . T he r e i s no p r e s u m p t i o n t h a t d e la y i s o c c as io n e d de l i b e r a t e l y , o r o n ac c o u n t o f c u l pa b l e n e g li g e n c e , or o n a c c o u n t o f m a l a f i d e s . A li t i g a n t do e s n ot s t a nd t o b e ne f i t b y r e s or t in g t o d e la y . I n f a c t, he r u n s s e r i o us r i s k . 6 . It m us t be g r a s pe d t h a t t h e j u d i c i a r y i s r e s pe c te d no t o n a c c ou nt o f i t s po w e r t o l e g al i z e i n j us ti c e o n t e c h ni c a l gr o u n d s b ut b e c au s e i t i s c a p ab l e o f r e m ov i n g i n ju s t i c e a n d i s e x p e c t e d t o d o s o . " 8. The pri nci pl es enunciated b y t he Hon'bl e Court s sa y i t al l . 9. I n t he li ght of fact s and cir cu mst an ces, we are of t he vi ew that t he assessee has suf fici ent l y di schar ge d it s bur den for s mal l del a y. The ca use of su bstanti al j usti ce deserves to be pref er r ed ove r t echni cal consi derat i ons i n t he fact s of the present case. The del a y occur re d i n fi li ng t he a ppeal bef or e t he C IT( A) t hus stand c ondoned a nd t he a ppeal bef ore C IT( A) dese rves to be ad mit ted for a dj udicat i on on mer it s in accor da nce wi th l aw. I.T.As No.1425 & 1426/Del/2022 6 10. Acc ordi ngl y, a ppe al i n ITA N o. 1305/ Ahd/2 016) is restor ed to the fi le of t he CI T( A) f or de novo adj udi cati on on meri ts i n accor dance wi th l aw aft er givi ng f ai r oppor tun it y to the assessee. 11. The f acts i n i ssu e i n IT A No. 1425/ Del /2 022 ar e si mi lar and t hus the obser vat i ons shal l appl y m ut ati s mut andi s. 12. I n t he result , both the capti one d a ppe al s are al l owe d f or stati sti cal purpose s. Order pronounced in the open Court on 19/04/2023. Sd/- Sd/- [KUL BHARAT] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /04/2023 Prabhat