Delay in Filing Appeal Condoned by ITAT as Tax Practitioners were busy in Income Tax, GST Compliance

The assessee has been deducting TDS and filing the returns on quarterly basis without fail and on time. He was subjected to tax audit u/s 44AB of the Income-tax Act, 1961. The assessee received e-mail communication intimating the levy of Rs. 18,934 for late filing of TDS returns. The assessee contended that its accounts staff were only data entry operators having no knowledge of taxation laws, but TDS returns were filed on regular basis. The assessee also contended that tax professionals engaged for filing income tax returns, tax audits and statutory audits prescribed under the Income Tax Act and the Companies Act were busy with their duties and also the compliances relating to GST Act.

An appeal was filed with a delay of 931 days before the CIT(A) against the said order which was not condoned by the CIT(A). Aggrieved the assessee filed the appeal before the tribunal.

The tribunal noted that the assessee did not intentionally file TDS returns belatedly and it was not disputed that the TDS returns were filed regularly without fail. Therefore, it clearly shows that it was an inadvertent mistake without any malafide intention. The CIT(A) ought to have considered the reasons explained by the assessee and condoned the delay. Upon hearing both the parties before us, the tribunal found that the assessee could be able to make out sufficient cause which really prevented him in filing appeal in time. Therefore, the tribunal condoned the delay of 931 days and directed the CIT(A) (NFAC), Delhi to decide the issues raised in the first appeal on merits and pass order in accordance with the law by giving sufficient opportunity of hearing to the assessee. Thus, grounds raised by the assessee were allowed for statistical purposes.