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2022 (1) TMI 286 - ITAT MUMBAICondonation of delay in filing appeal before CIT(A) - sufficient cause of such delay - assessee has gone into corporate insolvency resolution process and interim resolution professional has been appointed by NCLT - HELD THAT:- Delay of 23 months in filing of the appeal before the learned CIT(A), the assessee did not file appeal in order to buy peace of mind and to avoid penalty - when the assessment orders in case of other assessment years were also framed on the similar line and when the penalty was levied by the AO, the assessee preferred the appeal. It caused delay of almost 23 months and therefore, the assessee preferred the application for condonation of delay, which was rejected by the learned CIT(Appeals). We find that even the order of the learned CIT (A) in not admitting the appeal of the assessee is an order passed in contravention of Section 14 of the Insolvency and Bankruptcy Code 2016. This is for the reason that the section 14 prohibits even continuation of proceedings during moratorium against the corporate debtor. In view of this, the order of the learned CIT(A) in not admitting the appeal of the assessee is in contravention of Section 14 of the IBC and therefore not sustainable. We allow the appeal of the assessee with respect to the ground No.1 of the appeal and restore these appeals back to the file of the learned CIT (A) to decide the issue afresh. He also directed now that as an official liquidator has been appointed, the respective notice for the hearing etc are also requiring to be addressed to the official liquidator. The assessee is also directed to place before the CIT (A) the revised form No.35 duly signed by the official liquidator. This may be taken on record by the CIT(A) and then decide the issue of condonation of delay in filing of these appeals of 23 months after granting proper opportunity of hearing - If the appeals are admitted, then to decide the issue on the merits of the case, after granting opportunity of hearing in accordance with the law.
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