#tax consultant negligence

The ITAT Kolkata has ruled that the death of a taxpayer’s appointed tax consultant, leading to delayed filing of an appeal, qualifies as a reasonable cause for condonation under Section 250 of the Income Tax Act. This sets a critical precedent for taxpayers relying on professional representatives, affirming that administrative failures by third-party agents, beyond the assessee’s control, cannot be penalized as negligence.

ITAT Kolkata has ruled that delays in filing income tax appeals caused by a tax consultant’s illness and administrative oversight qualify as sufficient cause under Section 249(2), setting aside the CIT(A)’s dismissal and remanding for merits. This clarifies that professional negligence by third-party advisors, when documented and bona fide, can justify condonation - a critical precedent for taxpayers relying on chartered accountants.