ITAT Condoned 56-Day Late Filing Due to Staff Lapse, Grants Relief to Power Company

The ITAT Bangalore condoned a 56-day delay in filing an appeal against the penalty order and allowed the assessee’s appeal after finding the delay was due to an inadvertent lapse.

The present appeal has been filed by RNS Power Ltd against the Deputy Commissioner of Income Tax in ITAT Bangalore, challenging an order passed by CIT(A) dated February 28, 2025.

The assessee is a company involved in the business of generation and distribution of power. The assessee filed its return of income under section 139 (4) of the Act on March 20, 2021, showing zero taxable income. Later, the return was processed by the department, which denied the deduction under section 80 IA(4)(iv). As a result, a penalty was also added. However, the AO imposed the penalty of Rs. 22,265,728 on March 28, 2023.

The assessee then approached the CIT(A). However, the CIT(A) upheld the AO’s decision.

Being aggrieved with the decision, the assessee then approached the tribunal. The tribunal observed that the assessee had filed the appeal late by 56 days, i.e., on June 25, 2025. During the hearing, the assessee’s AR submitted that they have filed an application asking for condonation of the delay, along with an affidavit explaining the reason.

AR explained that after receiving the order from the CIT(A), the assessee asked their chartered accountant to file an appeal. The appeal fees were paid on April 23, 2025, and Form No. 36 was prepared on April 24, 2025, within the allowed time. However, to actually submit the appeal, the signed grounds of appeal and verification from the authorised signatory were required.

Although the form was ready on time, due to a mistake by office staff, the signed documents were not sent back to the lawyer’s office. Because of this mistake, the appeal was filed 56 days late.

AR further requested that, since the delay was accidental and not intentional, the Tribunal should kindly excuse (condone) the delay.

On the other hand, DR objected to the delay and submitted that the delay is not for sufficient cause and therefore should not be condoned.

After considering both sides, the tribunal observed that the delay occurred because of form no. 36 was not filed on the ITAT portal on time. This happened because the assessee did not forward the required documents to the counsel, even though the appeal forms had already been generated on April 24, 2025, and the appeal filing fee had been paid on April 23, 2025.

Therefore, the Tribunal held that there was a valid reason for the delay of 56 days in filing the appeal. As a result, the tribunal condoned the delay and also allowed the assessee’s appeal.