INCOME TAX ACT, 1961

Section 250

Appeal (CIT (A)) - Condonation of delay - Bonafide Reasons -

Assessee filed application for condonation of delay in filing appeal before CIT (A). The reasons assigned for such delay was that the TDS assessment orders, which were subject-matter of appeal before CIT (A) were not served on the assessee. Further, it was also stated that the assessee was under the impression that no late fee would be levied under section 234E in respect of the period prior to 1-6-2015 as the enabling provisions under section 200A were introduced only from 1-6-2015. However, the assessee received a demand notice for late fee under section 234E and approached his auditor and was informed that the remedy was to file appeal against the order under section 200A. Accordingly, the assessee submitted that he was not guilty of negligence and the delay was due to bonafide reasons. Held: Intimation under section 200A became an appealable order under section 246A, only consequent to amendment by the Finance Act, 2015 with effect from 1-6-2015. Prior to the said date, the intimation under section 200A was not appealable. Further, it is settled that while considering an application for condonation of delay, it should be kept in mind that substantial justice should prevail over technical considerations. Further, Tribunal in the case of MSV IT Solutions Ltd. v. ITO, Ward 16(4) ITA Nos. 177 & 178/Hyd/2018, Order, dt. 26-10-2018, on identical facts, condoned the delay in filing appeal before CIT (A) noticing that there was no legal remedy prior to 1-6-2015 against intimation under section 200A. Accordingly, in instant case, the delay in filing appeal before CIT (A) was condoned.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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