Medical Reasons Accepted: ITAT Grants Relief by Condoning 425-Day Delay

ITAT condoned a 425-day delay due to medical reasons and remanded the case to the AO for fresh assessment on merits.

Mr Praveen Singh Rana has filed the present appeal against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC) for the Assessment Year 2018-19.

Background of the case

The AO had passed an assessment order on March 23, 2023, under Sections 147, 144, and 144B of the Income Tax Act, 1961, making certain additions to the income of the assessee. Aggrieved by this order, the assessee filed an appeal before the CIT(A). However, the appeal was filed with a delay of 425 days.

The CIT(A) dismissed the appeal without condoning the delay. As a result, the assessee approached the ITAT.

Arguments Before the Tribunal

The AR submitted that the delay occurred due to genuine medical reasons. He stated that Mr Rana was suffering from severe knee pain and was under medical treatment. A medical certificate from the treating doctor was also submitted as evidence. The counsel requested the Tribunal to condone the delay and allow the appeal to be heard on its merits.

On the other hand, the department stated that the delay of 425 days was excessive and that the medical certificate was not sufficient to justify such a delay.

Tribunal’s Ruling

After hearing both sides, the Tribunal referred to the Supreme Court’s judgment in Collector, Land Acquisition vs. Mst. Katiji & Others (1987), where it was held that courts should adopt a liberal approach in condoning delays if there is a reasonable and bona fide explanation in the interest of substantial justice.

The Tribunal condoned the delay and remanded the matter back to the AO with directions to pass a de novo assessment order in accordance with the law.

As a result, the appeal of the assessee is partly allowed.