In M/S. Neerikode Service Co-operative Bank Ltd. v. Income Tax Officer, the Kerala High Court addressed the issue of condoning delays in filing appeals before the Income Tax Appellate Tribunal (ITAT).
Brief Facts: The Neerikode Service Co-operative Bank Ltd. faced an adverse assessment order from the Income Tax Department. The bank filed an appeal with the ITAT but did so after the prescribed deadline, leading to a delay. The ITAT dismissed the appeal, citing the delay and the bank’s previous non-cooperation during proceedings before the Commissioner of Income Tax (Appeals) [CIT(A)]. The bank then petitioned the Kerala High Court, seeking a directive for the ITAT to consider its application for condonation of delay.
Judgment: The Kerala High Court ruled in favour of the Neerikode Service Co-operative Bank Ltd., stating that the ITAT should not have dismissed the appeal solely based on the delay and the bank’s earlier non-cooperation before the CIT(A). The court emphasized that the ITAT must consider applications for condoning delay on their merits, irrespective of the appellant’s conduct in prior proceedings. Consequently, the court directed the ITAT to entertain the bank’s application for condonation of delay and to proceed with the appeal by the law.
This judgment underscores the principle that appellate authorities should assess delay condonation requests based on their merits, ensuring that procedural lapses do not impede the delivery of substantive justice.