ITAT Restores Appeal Dismissed on Limitation, Grants Fresh Opportunity to Assessee

Background

The Mumbai Bench of the Income Tax Appellate Tribunal has set aside an order of the National Faceless Appeal Centre dismissing an appeal solely on the ground of an inordinate delay of 1,577 days, holding that the assessee deserved one more opportunity to substantiate sufficient cause for condonation. In Imtiyaz Ahmad Khan v. Faceless Assessment Centre, the assessee had challenged additions of over ₹30.74 lakh made under Section 143(3) of the Income Tax Act for Assessment Year 2018–19. However, the CIT(A) declined to entertain the appeal due to the prolonged delay, observing that no documentary evidence was produced to justify the lapse. The Tribunal noted the assessee’s contention that supporting material had been furnished and that further evidence could still be produced to establish bona fide reasons for the delay.

Cost Imposed, Matter Remanded to CIT(A)

Without entering into the merits of the additions, the Tribunal emphasized that procedural lapses should not eclipse substantive justice where reasonable cause may exist. It accordingly restored the matter to the CIT(A) for fresh consideration of the condonation application, directing that a further opportunity of hearing be granted. As a condition, the assessee was directed to deposit ₹2,000 in the Prime Minister’s Relief Fund within 30 days and submit proof before the appellate authority. The Bench clarified that its remand order carried no observations on the merits of the tax dispute, which would be examined independently if the delay is condoned.