Delay Condonation cannot be done without proving ‘Reasonable Cause’: ITAT refuses to Condone Delay of 2886 Days [Read Order]

The Income Tax Appellate Tribunal (ITAT), Hyderabad Bench, has recently in appeals filed before it, while refusing to condone a delay of 2886 days, held that delay condonation cannot be done without proving reasonable cause.

The aforesaid observation was made by the ITAT, when appeals were filed before it by the assessee, Polyvet Pharmaceuticals, as against the order dated 5/8.2022, of the CIT (A)-NFAC, relating to A. Ys 2013-14 & 2014-15.

The issue involved in the present appeal being condonation of delay in the filing of appeals before the lower authorities, it was pointed out by Shri A.P. Babu, the DR representing the Revenue that the appeals of the assesse were filed after a delay of period of 2886 days before the lower authorities, and hence that the appeals of the assessee were highly time barred.

On the other hand, Shri D. Venugopal, CA ,the learned AR  for the assesse  submitted that the assessee was not aware about the filing of the appeal and had only learned about filing of the appeal after the tax demand was sent by the authorities, and further that the demand was raised prior to the amendment i.e. w.e.f. 1.6.2015, therefore, these appeals are maintainable and appeals are required to be allowed

However, with the DR strongly opposing the AR’s contention on the ground that the appellant was an individual aided and advised by the professionals and hence that it is not believable that the assessee was not aware about its rights, the ITAT Bench consisting of R.K Panda, the Accountant Member, along with Laliet Kumar, the JudiciaL Member, observed as follows:

“the reasons given by the assessee is not convincing and therefore the delay of 2886 days in filing the above appeal cannot be condoned by the CIT(A). Hence, the appeal is not maintainable before the CIT(A). Therefore, the Ld. CIT(A) was right and dismissing the appeal of the assessee on account of being barred by limitation. We do not find any reason to disagree with the order passed by the lower authority.”

Thus, dismissing the assessee’s appeal, the Delhi ITAT held:

“In the light of the above, we do not find any reason to interfere in the order passed by the Ld. CIT(A) and accordingly the appeals filed by the assessee are dismissed.”

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