2025 (7) TMI 1118 - AT - Income Tax

Delay of 1007 days in filing of appeal before the CIT(A) - HELD THAT - Assessee had indeed sufficient cause for the delay as it was pursuing alternative remedy before the ld CPC as the claim of deduction u/s 80IC of the Act was denied to the assessee without assigning any reason thereon by the ld CPC. We direct the ld CIT(A) to condone the delay in filing of appeal admit the appeal of the assessee and adjudicate the grounds raised by the assessee on merits and pass a speaking order thereon. The assessee is also entitled to file additional grounds if any in support of its contentions - grounds raised by the assessee are allowed for statistical purposes.

Summary

ISSUES:

Whether the delay of 1007 days in filing the appeal before the Commissioner of Income Tax (Appeals) was justified and whether the delay should be condoned.Whether the dismissal of the appeal as not maintainable due to delay was appropriate in view of the facts and circumstances, including the assessee pursuing alternative remedies through rectification proceedings under section 154 of the Income-tax Act, 1961.

RULINGS / HOLDINGS:

The delay in filing the appeal before the Commissioner of Income Tax (Appeals) was justified as the assessee had "sufficient cause" for the delay, having pursued alternative remedies under section 154 of the Act before the Central Processing Centre (CPC).The dismissal of the appeal as not maintainable on the ground of delay was incorrect; the delay should have been condoned and the appeal admitted for adjudication on merits.The assessee is entitled to file additional grounds in support of its contentions, and must be given a reasonable opportunity of being heard.

RATIONALE:

The legal framework applied includes the provisions of section 143(1), section 154, and section 80IC of the Income-tax Act, 1961, along with principles governing condonation of delay in filing appeals before the Commissioner of Income Tax (Appeals).The Court recognized that the assessee's delay was attributable to pursuing rectification applications under section 154 to address denial of deduction under section 80IC without any reason assigned by the Assessing Officer.The Tribunal emphasized that such a delay caused by seeking alternative statutory remedies constitutes "sufficient cause" warranting condonation of delay under the relevant procedural law.The decision reflects the principle that technical dismissal on delay grounds should not override substantive adjudication where sufficient cause exists.