ITAT Condones Delay Caused by Mistaken Belief of Assessee’s Tax Professional; Remands Matter to CIT(A)

The Income Tax Appellate Tribunal (ITAT), Mumbai, condoned a delay in filing an appeal caused by a bona fide mistaken belief of the tax professional.

The assessee, MNP Associates, received four notices that were sent to the email ID of the employee of the assessee, who did not inform the assessee about the same. This resulted in passing an ex parte order by the CIT(A). Therefore, the assessee filed an appeal before the ITAT, Mumbai, requesting an opportunity to be heard.

However, there was a delay of 93 days in filing this appeal before the Tribunal because of the mistaken belief of their tax professional that the appeal against the quantum order was already filed by the assessee. Therefore, the assessee requested the ITAT to condone this delay, saying that the same was caused due to the tax professional’s bona fide mistake and there was no mala fide intent.

The Tribunal observed that the reason for the delay submitted by the assessee is bona fide and there was no malafide intention. It placed reliance on the Supreme Court’s decision in the case of Collector Land Acquisition vs. Mst. Katiji & Ors, which held that Courts must admit the appeals if the applicant satisfies that he had a sufficient cause. Based on this, the Tribunal condones the delay in filing the appeal.

Based on the submissions made by the assessee, the Tribunal believed that the assessee deserves an opportunity to be heard. Therefore, the matter was remanded to the CIT(A) for fresh consideration, after giving the assessee a proper opportunity of being heard.