Facts of the Case

The assessee, Urmila RCP Projects Private Limited, Ranchi, filed an appeal against the order dated 10.01.2025 passed by the Additional/Joint Commissioner of Income Tax (Appeals)-1, Delhi for Assessment Year 2015-16. The appeal before the first appellate authority was dismissed without condoning a delay of 184 days in filing the appeal. Aggrieved, the assessee approached the Tribunal contending that the delay occurred due to sufficient cause and prayed for restoration of the appeal for adjudication on merits.

Issues Involved

Whether the delay of 184 days in filing the appeal before the first appellate authority deserved to be condoned, and whether dismissal of the appeal without condoning the delay was justified.

Petitioner’s Arguments

The assessee submitted that the delay of 184 days was caused due to circumstances beyond its control and that it was prevented by sufficient cause from filing the appeal within the prescribed time. It was contended that the first appellate authority erred in dismissing the appeal without considering the request for condonation of delay. The assessee prayed that the delay be condoned and the appeal be restored for adjudication on merits.

Respondent’s Arguments

The Revenue supported the orders of the Assessing Officer and the Additional/Joint Commissioner of Income Tax (Appeals) and contended that the appeal was rightly dismissed.

Court Order / Findings

The ITAT Ranchi observed that a perusal of the facts on record clearly showed that the assessee was prevented by sufficient cause from filing the appeal within the prescribed period. The Tribunal held that the delay of 184 days deserved to be condoned. Accordingly, the Tribunal condoned the delay and restored the issues to the file of the Additional/Joint Commissioner of Income Tax (Appeals) for adjudication on merits after granting adequate opportunity of hearing to the assessee.

Important Clarification

The Tribunal clarified that where sufficient cause is demonstrated, delay in filing an appeal should be condoned to advance substantial justice, and appeals should ordinarily be decided on merits rather than being dismissed on technical grounds.

Final Outcome

The appeal filed by the assessee was partly allowed for statistical purposes. The delay of 184 days in filing the appeal before the first appellate authority was condoned, and the matter was restored to the file of the Additional/Joint Commissioner of Income Tax (Appeals) for adjudication on merits in accordance with law.

Link to Download Order- https://www.mytaxexpert.co.in/uploads/1769081307_URMILARCPPROJECTSPRIVATELIMITEDRANCHIVS.ITOTDSRANCHI.pdf

 

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