ITAT Indore Condones 508-Day Appeal Delay Due to Counsel Lapse and COVID

Kalpana Narware, an individual assessee, faced an ex-parte assessment under Section 144 for AY 2017-18. The assessment order was passed on 25.10.2019. Her first appeal before the CIT(A) was filed with a delay of 508 days and was dismissed as time-barred by NFAC without examining the merits.

The assessee explained that she was misguided by her earlier counsel, had paid fees, followed up regularly, and was also affected by pregnancy and the COVID-19 pandemic period. The appeal before ITAT itself was delayed by 112 days, which was also explained and supported by evidence.

Issue Before Tribunal: Whether the delay of 508 days in filing the first appeal before the CIT(A) deserved condonation in light of counsel negligence, pregnancy, and COVID-19 extensions, and whether the ex-parte assessment under Section 144 should be restored for fresh adjudication.

ITAT’s Ruling: The ITAT condoned both the 112-day delay before the Tribunal and the 508-day delay at the first appellate stage. It held that the assessee had shown “sufficient cause” supported by evidence, including proof of due diligence and the Supreme Court’s COVID-19 extension orders.

The Tribunal set aside the CIT(A)’s dismissal and restored the matter to the Assessing Officer for fresh adjudication. The AO was directed to grant a proper opportunity of hearing, while the assessee was cautioned to participate diligently without seeking unnecessary adjournments.

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