UTHTHAAN,GURGAON vs. CIRCLE(1)(1) GURGAON, GURGAON

PER SUDHIR KUMAR, JUDICIAL MEMBER:

This appeal is preferred by the assessee against the order dated 20.01.2025 of the Commissioner of Income Tax, Appeals
(A) -2 Bengaluru [hereinafter referred to as “Ld. CIT(A))”] passing against the assessment order dated 18.05.2020 for the Uththaan vs. DCIT Circle –(1) Gurgaon assessment year 2019-20 u/s 143(1) of the Income Tax Act
1961[hereinafter referred to as “the Act”].
2. The assessee has raised following grounds of appeal :-
1. That the CIT(A) erred in law and on facts in dismissing the appeal by rejecting the request for condonation of delay of 1371 1 days in filing the appeal without appreciating that there was a genuine and bona fide reason for the delay, which was beyond the control of the Appellant.
2. 3.1 That the CIT(A) failed to appreciate that the delay was primarily due to lack of proper legal advice, during the lockdown due to Covid Pandemic, and subsequent realization by the Appellant upon consultation with tax professionals, which constitutes a 'sufficient cause' under the provisions of Section 5 of the Limitation Act, 1963
3. 1. That the learned CIT(A) has erred on facts and in law in dismissing the appeal without adjudicating the grounds on merits, thereby erroneously upholding the intimation under 3 Section 143(1) dated 31.01.2020, wherein the CPC has erroneously computed the aggregate income at Rs. 1,54,81,569/-raising a tax liability at Rs.
66,55,345/-, which is beyond juri iction and bad in law.
4. 2. That the CIT(A) erred in dismissing the appeal without adjudicating the grounds on merits, solely on the basis of delay, denying the Appellant an opportunity of Uththaan vs. DCIT Circle –(1) Gurgaon fair hearing, and failing to appreciate that the principles of natural justice require that a litigant should be given an opportunity to be heard on the substantive issues, even if there is a procedural lapse such as a delay in filing
5. 3.2 That the CIT(A) erred in law as well as on facts in treating the delay as deliberate and not caused by a reasonable or 5 unavoidable reason, despite judicial precedents where courts have held that justice should prevail over technicalities when a party has not acted with mala fide intent
6. 4. That the CIT(A) has erred on facts as well as in law in giving unjustified supremacy to procedure over legislative intent and substantive law in denial/disallowing the exemption under 6 section 11, merely due to procedural lapse of delay in filing of the audit report dated 19.09.2019 in prescribed Form 10B on NG8.02.2023, as required under unamended Rule 17B, as it stood
5. That the CIT(A) has erred on facts as well as in law in erroneously upholding the decision of ACIT, CPC that the Appellant is not validly registered under Section 12A/12AA, despite having a valid registration since 2004
bearing no. CTI/FBDT/Tech/04-05 /12A/50/36 granted on 10.12.2004. Uththaan vs. DCIT Circle –(1) Gurgaon

3 The brief facts of the case are that the assessee is a registered society. The assessee filed return of income for A.Y.2019-20 on 26-10-2019 claiming exemption under section 12A/AA of the Act. The CPC processed the return of income u/s 143(1) of the Act against the intimation order the assessee filed the time barred appeal before the Ld. CIT(A) who vide his order dated 20-01-2025 dismissed the appeal treated as time barred.
Ld. CIT(A) has observed that the assessee has failed to explain the sufficient cause for condonation.
4. Aggrieved the order of the Ld. CIT(A) the assessee filed this appeal before the Tribunal.
5. The Ld. AR for the assessee submitted that the appeal was dismissed treating time barred by the appellate authority. The assessee has moved the application for condonation of delay showing the sufficient cause. He submitted that the appeal be admitted for adjudication on merit and delay be condoned.
6. The Ld. CIT(DR) submitted that no sufficient cause has been shown by the assessee for condone the delay in filling the Uththaan vs. DCIT Circle –(1) Gurgaon appeal. He further stated that the appeal was rightly dismissed by the Ld. CIT(A).
7. We have heard the rival contention and perused the material available on record.
8. The assessee has filed the application for condonation the delay in filing the appeal. In the application the assessee has stated that due to COVID-19 the appeal was not filed within time. The assessee has shown the sufficient cause not to file the appeal with in time. The Ld. CIT(A) should have condoned the delay in filing the appeal and should have heard the appeal on merit because the assessee has shown the sufficient cause not to file the appeal with in time. Thus, keeping in view, the entire aspects of the matter, we condone the delay in preferring the appeal before the Ld. CIT(A) having been satisfied with the explanation so rendered by the assessee before the said authority. The order passed by the Ld. CIT(A) is setting side, the issue to the file is restored before the Ld. CIT(A) who decide the matter to the file after giving the opportunity of being heard to Uththaan vs. DCIT Circle –(1) Gurgaon the assessee. The assessee is directed to co-operate with the appellate authority. The grounds raised by the assessee are accordingly allowed for statistical purposes.
9. In the result, the appeal of the assessee is allowed for statistical purpose.

Order pronounced in the open court on 21.08.2025. (MANISH AGARWAL)
JUDICIAL MEMBER
Date:08.09.2025
Neha, Sr. PS