Trust in CA Led to Delay: ITAT Restores Appeal After Accepting Taxpayer’s Explanation for Delay

The ITAT Nagpur has granted a second opportunity to the taxpayer, Monika Rajesh Malani, by condoning the delay in filing an appeal before the first appellate authority. The case is restored before the Commissioner of Income Tax (Appeals) [CIT(A)] for fresh consideration.

In the present case, the assessee (Monika Rajesh Malani) had delayed filing an appeal before the first appellate authority, i.e., CIT(A). Explaining the reason behind the delay, the assessee claimed that she trusted her chartered accountant (CA) who was representing the case; however, she was not informed about any notices and proceedings before the Assessing Officer (AO). This resulted in a significant delay in filing an appeal before the CIT(A).

However, the tax authorities argued that the reason discussed by the assessee is not sufficient to condone the delay. However, the tribunal noted that while filing the appeal, the assessee had provided her own e-mail address, which supported her claim that she was no longer relying on the earlier representative. The Tribunal found the explanation to be genuine and acceptable.

Accordingly, considering the aforementioned findings, the tribunal condoned the delay in filing the appeal before the CIT(A). The case is remanded to the first appellate authority back for fresh adjudication; the issues arising out of penalty proceedings thereupon are also restored before the CIT(A). The concerned authorities have been instructed to grant the assessee a fair opportunity of hearing.

Hence, the appeal is allowed for statistical purposes.