Filing Appeal In Tax Matters Require Legal, Technical Assistance: Kerala High Court Condones 11 Days Delay
The Kerala High Court, while condoning the delay of 11 days, observed that filing an appeal in tax matters may require legal and technical assistance.
The bench of Justice Murali Purushothaman has observed that the reason for not filing the appeal on time was the non-availability of the legal consultant.
The bench observed, “the taxation laws and the procedures involved in filing an appeal may be beyond comprehension for a layman assessee.”
The petitioner/assessee is a cooperative society. The petitioner filed its return of income for the assessment year 2017-18 and claimed deduction under Section 80P of the Income Tax Act. The assessing officer completed the assessment and passed the order under Section 143(3). The Assessing Officer disallowed the deduction claimed by the petitioner under Section 80P.
The petitioner preferred an appeal under Section 246A of the Income Tax Act in Form No. 35 before the Commissioner of Income Tax (Appeals). The petitioner has stated that there is a delay in filing the appeal. The ground for condonation of delay was the non-availability of our legal consultant, who was out of station due to some personal reasons.
The CIT(A) refused to condone the delay and dismissed the appeal, stating that the application does not explain the reasons, much less demonstrate sufficient cause for condoning the delay. It is a settled position of law that the assessee is duty-bound to explain each day's delay after the last date of limitation.
The assessee contended that dismissing the statutory appeal by refusing to condone the delay of 11 days is arbitrary and illegal. The appellate authority went wrong in relying on judgments that are irrelevant and not applicable to the facts of the case.
Section 249(3) provides that the Commissioner (Appeals) may admit an appeal after the expiration of the period provided under Section 249(2) if he is satisfied that the appellant had sufficient cause for not presenting the appeal within the said period.
The court, while allowing the petition, held that the reason advanced by the petitioner for condoning the delay in filing the appeal is sufficient, and the delay should have been condoned by the CIT(A).
The court directed the CIT(A) to consider the appeal on merits for a period of two months after affording the petitioner an opportunity to hear it.
Counsel For Petitioner: G. Mini
Counsel For Respondent: Sr. Jose Joseph
Case Title: The Meenachil Taluk Cooperative Employees Cooperative Society Limited Versus Commissioner Of Income Tax (Appeals)
Case No.: WP(C) NO. 21866 OF 2024