Relief to Bangalore Metro Rail Corporation Ltd: ITAT condones Delay of 1037 Days in filing Appeal due to Wrong Professional Advice [Read Order]

In a major relief to M/s. Bangalore Metro Rail Corporation Ltd, the Income Tax Appellate Tribunal (ITAT), Bangalore bench has condoned a delay of 1037 days in filing appeal for the reason that the assessee could not file appeal due to wrong professional advice.

The assessee is a corporation under the special purpose vehicle to implement metro rail projects. During the year under consideration, the AO made an addition of Rs. 28,81,99,268 towards Interest on term deposit and other.

The assessee contended that when they approached a professional who advised that, no relief may be expected in the appellate forum, and therefore, the assessee did not file any appeal before the Ld.CIT(A).

However, subsequently, in assessee’s own case for A.Ys. 2007-08 and 2008-09, that was pending before this Tribunal in ITA Nos. 1070 & 1071/Bang/2011, was decided on 31.10.2014, wherein the issue under consideration in respect of income earned on investment made out of surplus funds, whether taxable in the hands of the assessee was decided in favour of the assessee. Accordingly, assessee preferred appeal before the CIT(A) challenging the orders that were not challenged. The first appellate authority, however, dismissed the appeal on the ground of delay of 1037 days in filing appeal.

The Tribunal bench comprising Shri. B.R. Baskaran, Accountant Member and Smt. Beena Pillai, Judicial Member held that “From the above, it is clear that the period of time that assessee followed the wrong professional advice in preferring the respective appeals are the same. It is also true that the advice of the professional would be the point of time at which the assessee would begin to explore the option of exhausting all legal remedies.”

Shri Sreehari Kutsa, Advocate appeared for the assessee.

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