ITAT Gives Relief To Differently-Abled Taxpayer After Consultant’s Lapse Leads To Rs 1.85 Lakh Addition

The Income Tax Appellate Tribunal (ITAT) has stepped in to protect a differently-abled taxpayer who was saddled with a Rs 1.85 lakh income-tax addition solely because his authorised consultant failed to act on time. The tribunal’s order draws attention to the very real difficulties taxpayers can face when they depend on others to handle their paperwork, difficulties that become even more pronounced for someone living with a physical disability.

The taxpayer had trusted his consultant to handle the appeal and genuinely believed everything had been filed on time, according to a recent report by Taxscan. It was only much later that he discovered nothing had been done and no updates had ever been shared with him. By then, nearly 600 days had passed, an unusual delay that, in most cases, would have closed the door on the appeal altogether.

A Delay Caused Simply By Neglect

When the matter finally came before the ITAT, the taxpayer told the tribunal that he had given his consultant every document that was required. From his side, he believed the work was underway and had no idea that nothing had actually been filed.

He had no reason to think the paperwork was still lying untouched. It was only much later that he discovered the consultant had done nothing. Upon learning this, he acted swiftly.

The tribunal noted that there was no indication of malafide intention or an attempt to misuse the appeal process. Instead, the delay had arisen entirely from the consultant’s negligence. The members observed that a differently-abled taxpayer should not be penalised for depending on a professional, especially when he had shown good faith throughout.

The ITAT emphasised that substantial justice must prevail over procedural rigidity. In situations where the cause of delay is outside a taxpayer’s control, and where the taxpayer has acted honestly, tribunals are empowered to condone delays in the interest of fairness.

Matter Sent Back For Fresh Assessment Review

After condoning the 600-day delay, the ITAT did not stop at removing the procedural hurdle. It remanded the case to the Assessing Officer for a fresh examination of the Rs 1.85 lakh addition. This move means the taxpayer will finally have a fair chance to present his case, instead of losing that opportunity because of a delay he didn’t cause.

The order also underlines a simple point: people are expected to follow deadlines, but when someone has done their part, and the slip-up comes from the professional they trusted, it would be unfair to shut the door on them.