ITAT Bangalore Condones 143-Day Appeal Delay Caused by Employee Resignation; Remands Case for Merits Adjudication

The Income Tax Appellate Tribunal (ITAT), Bangalore Bench, recently delivered a pragmatic ruling emphasizing that an assessee should not be deprived of substantial justice due to genuine procedural lapses. In the notable case of Reddy Housing Pvt. Ltd. Vs DCIT, the Tribunal pardoned a filing delay of 143 days, recognizing the administrative chaos caused by the sudden departure of key tax personnel as a valid and reasonable cause.

Background of the Dispute

The legal dispute originated when the assessee challenged an order issued by the National Faceless Appeal Centre (NFAC), Delhi, dated 27.09.2025, pertaining to the Assessment Year 2021–22.

When the assessee initially approached the Commissioner of Income Tax (Appeals) [CIT(A)], the appeal was filed past the statutory deadline, resulting in a delay of 143 days. Due to this procedural shortfall, the CIT(A) refused to condone the delay and dismissed the appeal in limine (at the threshold), completely bypassing any examination of the substantive tax issues involved.