Condonation of Delay of 3 Years, Appeal to be Decided on Merits: ITAT

Municipal Council, Chalisgaon Vs. DCIT, Ghaziabad

(Order pronounced on this 07th day of June, 2022)

The appellant is a local statutory body. The ACIT, Ghaziabad issued an intimation u/s 200A of the Income Tax Act, 1961 (‘the Act’) for the assessment year 2016-17 levying a late fee under the provisions of section 234E of Rs. 4,000 by stating that the appellant had failed to file the quarterly statement of TDS of first quarter for the financial year 2015-16 against the due date of 15.07.2015. Therefore, there was a delay of 20 days. Accordingly, the ACIT levied a penalty of late fee of Rs. 4,000 u/s 234E by intimation dated 14.08.2015 passed u/s 200A of the Act.

Appeal before CIT(A): Being aggrieved by the above intimation, an appeal was filed before the ld. CIT(A) with delay of 3 years. The ld. CIT(A) dismissed the appeal in limine without condoning of delay as there was a delay of 3 years.

Appeal before ITAT: Being aggrieved by the above decision of the ld. CIT(A), the appellant is in appeal before the tribunal.

The ld. CIT(A) did not condone the delay on the ground that the appellant failed to demonstrate any sufficient cause or a reasonable cause for delay in filing of the appeal. Such an approach was held incorrect by the Jurisdictional High Court in the case of EBR Enterprises vs. Union of India, and Vijay Vishin Meghani vs. DCIT, 398 ITR 250 (Bom.). In the light of this law laid down by the Hon’ble Jurisdictional High Court in the cases referred the ITAT held that the ld. CIT(A) ought to have condoned the delay and should decide the appeal on merits. Hence, the matter is to be restored to the file of the ld. CIT(A) and direction was given to disposing of the appeal on merits.

Therefore, the appeal filed by the assessee was partly allowed.

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