ITAT Delhi Condoned 36-Day Delay, Orders Fresh Assessment in Chandra Co-operative Group Housing Case

Tribunal Takes Liberal View on Delay, Restores Appeal

The Delhi Bench ‘G’ of the Income Tax Appellate Tribunal has condoned a 36-day delay in filing appeal by M/s Chandra Co-operative Group Housing Society Ltd. for Assessment Year 2012-13, setting aside the order of the National Faceless Appeal Centre that had dismissed the first appeal on grounds of delay. The reassessment had earlier been completed under Sections 147 read with 143(3) of the Income Tax Act, 1961, with an addition of ₹1.12 crore treated as unexplained income. The assessee contended that the assessment order and demand notice were misplaced after being received by post, leading to the delay in filing appeal.

Relying on the Supreme Court’s ruling in Collector, Land Acquisition v. Mst. Katiji (167 ITR 471), the Tribunal reiterated that procedural delays supported by bona fide explanations should be viewed liberally to advance substantial justice.

Matter Remanded for De Novo Adjudication

Finding merit in the explanation and noting that the delay was not inordinate, the Tribunal condoned the delay and restored the matter to the Assessing Officer for fresh adjudication. It directed that a de novo assessment be undertaken in accordance with law and after affording adequate opportunity of hearing to the assessee. The appeal was accordingly allowed for statistical purposes, reaffirming the principle that technical lapses should not defeat substantive justice in tax proceedings.