ITAT condones Delay of 4 Years in filing Rectification Application u/s 154 of Income Tax Act–TAXSCAN

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By Taxscan Team – On April 17, 2022 7:11 am

ITAT - Rectification Application - Income Tax Act - Taxscan

The Jaipur bench of the Income Tax Appellate Tribunal (ITAT) has recently condoned a delay of four years in filing a rectification application under section 154 of the Income Tax Act, 1961 finding that there is a ’reasonable cause’ for such delay.

The assessee has challenged an addition of Rs. 7,22,991/- conteding that the Director of the company produced the medical reports as evidence for delay in filing the application U/s 154 of the IT Act.

Dr. S. Seethalakshmi, JM & Shri Rathod Kamlesh Jayantbhai, AM observed that the prayer of the assessee is that application filed by the assessee under section 154 of the Act was not properly disposed off without providing adequate opportunity to the assessee. In the interest of equity and justice, the appeal of the assessee is remand to the file of the CIT (A) to decide it afresh by providing adequate opportunity of hearing to the assessee.

“We don’t have any hesitation to condone the delay of 4 years for filing the application under section 154 of the IT Act due to reasonable cause and genuine in nature and we consider accordingly, it is a fit case for remand for proper adjudication of the case by following the established procedure laid down. under rules 46A(1), (2) and (3) of the Rules which we order accordingly. The impugned order passed by the Lower authority is hereby quashed and set aside. The appeal is remanded to the Commissioner of Income-tax ,who shall make an endeavour to dispose of the entire appeal in accordance with law as indicated above as expeditiously as possible, The assessee is also directed to produce relevant additional evidences concerning the issue in question, where additional evidence in form of segmental audited results have been admitted which needs to be verified and examined by the Revenue authorities and in any case within a period of three months from the date of pronouncement of this order before him,” the Tribunal said.To Read the full text of the Order CLICK HERE

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