INCOME TAX ACT, 1961

Section 253(5)

Appeal (Tribunal) - Condonation of delay - Sufficient cause -

There has been a delay in filing of appeal by 515 days. Assessee contended that CIT(A) had passed ex parte order. It came to knowledge of the assessee when application under Vivad Se Vishwas Scheme was rejected by CIT, Ajmer and the reason was that no appeal was pending. Then counsel visited the site of ITBA of assessee then it came to the knowledge of assessee that order had already been passed by CIT(A), Ajmer vide Order, dated 7-5-2019 on ex parte basis. Assessee had not received any notice for hearing of the appeal as well as the order passed by CIT(A). Assessee was not aware of the passing of CIT(A)'s order till rejection of application under Vivad Se Vishwas Scheme by the PCIT, Ajmer. However, as soon as assessee came to know of subsequent penalty order being passed against it, it consulted its Counsel and basis his advice, the appeal was filed, though with a delay of 515 days. Held: Though assessment and penalty proceedings are independent proceedings but at the same time, there is a close connection between the two proceedings and where assessee has filed appeal apparently to safeguard its rights in relation to the penalty proceedings, the assessee cannot be denied and deprived of his legal defence and pleadings which he may take as so advised in the course of the penalty proceedings. Therefore, without going into the merits of levy of penalty which was not the subject matter of concerned dispute, where assessee wished to plead against levy of penalty, the Tribunal could not be oblivious of its duty by denying such right to the assessee on mere technicality of delay in filing of appeal. Therefore, in exercise of powers under section 253(5) delay in filing of appeal, supported by the sufficient cause, was concerned and appeal was by admitted for adjudication on merits.

Relied:Collector, Land Acquisition v. Mst. Katiji & Ors. (1987) 2 SCC 107 : 1987 TaxPub(DT) 1279 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14 to 2015-16

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