2022 (3) TMI 525 - AT - Income Tax

Condonation of delay - there is huge delay in filing these three appeals i.e. 859 days 669 days and 755 days - whether the assessee had sufficient cause for not presenting the appeals within time allowed u/s. 249(2) of the Act - As submitted that non filing of the appeal was due to ill health of the accountant - HELD THAT - It is admitted fact that the assessee is a firm and not an individual. The assessee is having many employees and it is binding duty of the assessee to verify whether the appeals were filed before the appropriate forum or not. As observed by the Hon ble Apex Court in many cases the law assist those who are vigilant and not those who sleep over their rights. In this case the assessee is not at all vigilant and is also negligent in pursuing of filing of appeals As the period of limitation should not come as a hindrance to do substantial justice. In this case the assessee has not given any sufficient and reasonable cause to explain the huge delay in filing of the appeals - we are of the firm view that there is no other alternative for the Ld. CIT(A) to reject all the appeals at the threshold. We feel that the delay has not been properly explained by the assessee and it has not brought any material on record to show sufficient cause for such delay. Therefore there is no merit in considering the grounds of appeals raised by the assessee and accordingly dismissed.

Summary

Issues:
Delay in filing appeals before Ld. CIT(A) without condonation.

Analysis:
The appeals were filed against the orders of Commissioner of Income Tax (Appeals) for Assessment Year 2011-12 and 2013-14. The grievance of the assessee was the dismissal of appeals without condoning the delay in filing. The firm, engaged in buffalo meat processing and export, admitted total income for the respective years. Assessments were completed under section 143(3) of the Act, with subsequent survey and notice for reassessment. The AO made additions and imposed penalties, leading to the appeals before Ld. CIT(A) with significant delays ranging from 669 to 859 days.

The main reasons for the delay were health issues of the accountant, including a severe heart attack and bypass surgery, which hindered the filing of appeals. The firm was unaware of the non-filing until bank accounts were attached for tax recovery. Despite submissions, Ld. CIT(A) dismissed the appeals citing insufficient grounds for condonation of delay. The Tribunal heard the appeal with contentions from both parties.

The Tribunal acknowledged the substantial delays but focused on whether there was a valid cause for not filing within the allowed time under section 249(2) of the Act. It emphasized the duty of the assessee to be vigilant in pursuing appeals, citing legal principles favoring those vigilant over those negligent. The Tribunal found the firm negligent and lacking sufficient cause for the delays, leading to the rejection of all appeals. The Tribunal concluded that the delay was not adequately explained, and no material was presented to justify the delay, resulting in the dismissal of all appeals.

The Tribunal's decision was based on the lack of a valid reason for the delays, emphasizing the importance of diligence in pursuing legal remedies. Despite the health issues of the accountant, the firm's negligence in monitoring the appeals process led to the dismissal of the appeals. The Tribunal upheld the orders of Ld. CIT(A), highlighting the necessity for timely and justified actions in legal proceedings to ensure the pursuit of justice.