The New Delhi bench of the Income Tax Appellate Tribunal (ITAT) remanded the matter, holding that pending family disputes and mental distress constituted reasonable grounds for condonation of delay.
The assessment was completed under Section 147/144 and proceedings under Section 271B of the Income Tax Act for levy of penalty for not getting the accounts audited in accordance with the provisions of section 44AB of the Income Tax Act were initiated. Thereafter, the AO levied the penalty of Rs. 1.50 Lakhs by holding that the assessee, Lalit Aggarwal, has not audited the account even after having the turnover exceeding the maximum threshold limits provided under Section 44AB of the Income Tax Act.
Against the said order, the assessee filed an appeal before the CIT(A) however, the appeal was filed delayed by 1208 days and no reasons were stated for the delay therefore, the appeal of the assessee was not admitted. Aggrieved, the assessee is in appeal before the Tribunal.
The assessee submitted that the delay was due to pending family disputes, divorce proceedings, other legal matters, and mental distress. It was also contended that the COVID-19 period, as per the Supreme Court’s directions, should be excluded. The assessee argued that the delay was unintentional and supported by sufficient cause, and therefore, should be condoned.
The two-member bench of Sudhir Kumar, Judicial Member and Manish Agarwal, Accountant Member noted that “We find force in the submissions of the AR that the assessee was preoccupied in personal family disputes and was mentally was not stable and was very disturbed therefore, the appeal could not be filed within the stipulated time period.”
The Tribunal also relied on the Supreme Court order in Suo Moto Writ Petition in SMW(C) No. 03/2022 by which it has extended the period of limitation falling under Covid-19 period, till 31.05.2022 due to Covid pandemic, therefore, to this extent the delay is not attributable to the assessee and should be excluded.
The Tribunal concluded by noting that, the matter should be remanded to the CIT(A) to reconsider the assessee’s application for condonation of delay. The CIT(A) was directed to examine the sufficiency of the reasons provided and admit the appeal in accordance with law, if satisfied.
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LALIT AGGARWAL vs INCOME TAX OFFICER
CITATION : 2026 TAXSCAN (ITAT) 310Case Number : ITA 8804/DEL/2025Date of Judgement : 8 July 2026Coram : SUDHIR KUMAR, MANISH AGARWALCounsel of Appellant : SACHIN JAINCounsel Of Respondent : AJAY KUMAR ARORA
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