Delay in filing of 8 years in filing of Appeal due to wrong advice of counsel condoned by ITAT
Recently by order dated 16.10.2024 passed by the ITAT Delhi in the case of M/s. PME Power Solutions (India) Ltd., v. DCIT in ITA nos. 242 & 249/Del/2024, ITAT Delhi has given following verdict:
1. The Hon’ble Tribunal was pleased to condone delay in filing appeal for approx. 8 years, accepting that bonafide mistake in understanding the law and wrong advice of counsel constitutes sufficient case of condoning the delay;
2. Where the ROI was treated as invalid for want of payment of self-assessment tax, the AO erred in proceeding ahead with adopting income on the basis of such ROI in the assessment completed u/s 143(3), which ought to have been completed through mandatory provisions of section 144 of the Act covering the situation of assessment in case of no ROI. Also relied upon CBDT Instructions of mandatory assessment u/s 144 in case of invalid ROI and holding the same to be mandatory for AO.
The copy of the order is as under:
