B.R. Baskaran ORDER
George George K., Member (J)
1. This appeal at the instance of the assessee is directed against CIT(A)'s order dated 29.03.2019. The relevant assessment year is 2016-2017.
2. There is a delay of 539 days in filing this appeal. The assessee has filed petition for condonation of delay accompanied by two affidavits. One affidavit is filed by Sri. Mahesh B.S., who was the Finance Manager of the assessee, and the other is of Sri. Ramachandra Nayak Bengre, who is presently the Senior Finance Manager of the assessee. The reasons stated for delayed filing of the appeal is that Sri. B.S. Mahesh, who was the then Finance Manager had informed about the appeal being dismissed by the CIT(A) to the Management and sought for approval for further course of action. However, the appeal was not filed within the above said date for the reason that the matter was not followed up by the Finance Manager with the management and the consultant. Later, the Finance Manager put in his resignation and the proceedings were left unattended. On further analysis of pending legal proceedings during March 2020 for the purpose of statutory audit for the financial year 2019-2020, management found out that the appeal has not been filed within the time and approached the Chartered Accountant for filing the appeal. Due to Covid-19 Pandemic, the process of filing the appeal took some more time. Therefore, it was prayed that the Tribunal may be pleased to condone the delay.
2.1. The learned Departmental Representative present was duly heard.
2.2. We have heard the rival submissions and perused the reasons stated for the belated filing of this appeal. The delay in filing of this appeal was on account of the then Finance Manager not following the issue with the Consultant. Later, the Finance Manager had resigned and the matter was left unattended. There are affidavits to the effect from both the earlier Manager and the present Manager of the assessee. The management came to know about the appeal not being filed on time when statutory audit for the financial year 2019-2020 was being prepared. Due to Covid-19 Pandemic, the process of filing the appeal took some more time from the end of the Chartered Accountant. Therefore, in the given facts and circumstances of the case, we are of the view that there is reasonable and sufficient cause in filing the appeal belatedly. In this context we rely on the judgment of the Hon'ble jurisdictional High Court in the case of CIT v. ISRO Satellite Centre in ITA No. 532/2008 (judgment dated 28.10.2011), wherein it was held that in Income Tax matters delay in filing of the appeal should be condoned irrespective of the length of delay if there is a reasonable cause. The Hon'ble Apex Court in the case of Collector, Land Acquisition v. Mst. Katiji & Others, reported in MANU/SC/0460/1987 : 167 ITR 471 had held that there should be a liberal and practical approach in exercising discretionary powers in condonation of delay. It was held by the Hon'ble Apex Court that the appellant does not get any benefit from filing belated appeal. Therefore, it concluded by the Hon'ble Apex Court even if the delay is condoned, at best what can happen on condonation of delay is that the appeal will be decided on merits. Keeping the above principles laid down in the judicial pronouncements referred to above and considering the facts and circumstances of the present case, we are of the view that the delay in filing the appeal was occasioned by reasonable and sufficient cause. Hence, the delay in filing this appeal before the Tribunal is condoned and we proceed to dispose of the matter on merits.
3. The solitary issue that is raised in this appeal whether the CIT(A) is justified in confirming the disallowance of Rs. 43,12,042 being claim of deduction u/s. 35(2AB) of the I.T. Act.
4. The brief facts of the case are as follow:
The assessee is a private limited company. It is engaged in the business of he........