Intro:
Time barred income tax appeal by just one day? The Income Tax Appellate Tribunal (ITAT) recently ruled that such minor delays shouldn’t block justice. In a landmark case, ITAT pulled up the National Faceless Appeal Centre (NFAC) for dismissing a taxpayer’s appeal as “time-barred” by a single day.
Background: Appeal Dismissed by NFAC for One-Day Delay
The appellant had filed an income tax appeal before the NFAC under Section 250 of the Income Tax Act, 1961.
The NFAC cited strict limitation rules as the basis.
ITAT’s Verdict: Dismissal Not Justified
The taxpayer challenged the NFAC order before the ITAT. On hearing the matter, the ITAT ruled in favour of the assessee.
Key Observations by the ITAT:
- A delay of one day was not deliberate but due to genuine reasons.
- NFAC failed to consider the condonation request filed under Section 5 of the Limitation Act.
- Tax authorities should avoid hyper-technical dismissals in genuine cases.
“Justice cannot be sacrificed at the altar of limitation, especially when the delay is negligible and properly explained.” – ITAT Bench
Legal Provisions Involved
| Provision | Description |
|---|---|
| Section 250(6A) | Appeals before CIT(A) are now handled facelessly via NFAC. |
| Section 249(2) | Appeal must be filed within 30 days; delay can be condoned with valid reason. |
| Section 5, Limitation Act | Courts can condone delay if sufficient cause is shown. |
Expert View: Avoid Harsh Dismissals in Tax Appeals
Senior tax consultants believe this ruling sends a strong message to tax officers and faceless centres:
“While digital systems like NFAC reduce subjectivity, they must not overlook basic fairness. Technical defaults shouldn’t override substantive justice.” — CA Meenal Gupta, Tax Consultant
Practical Takeaways for Taxpayers
- Always file appeals within the deadline (usually 30 days from order date).
- Submit condonation request if there’s any delay — even by a day.
- Track NFAC timelines closely on the e-filing portal.
What Efiletax Recommends
At Efiletax, we help you avoid last-minute stress and ensure timely filing of appeals and replies on the income tax portal.
✅ Expert review before submission
✅ Tracking deadline reminders
✅ Support in drafting condonation applications
✅ Escalation support for NFAC dismissals
👉 Get Appeal Filing Help from Efiletax
Summary
Income tax appeal rejected for one-day delay? ITAT overrules NFAC, saying justice must trump technicality. Minor delays shouldn’t block taxpayer rights.
FAQs
Q1: How many days do I have to file an income tax appeal?
A: Generally, 30 days from the date of order under Section 246A.
Q2: Can I challenge NFAC’s dismissal of my appeal?
A: Yes, you can approach the ITAT within 60 days under Section 253.