SURESHKUMAR RAMANLAL SANGHVI,MUMBAI vs. INCOME TAX OFFICER (WARD 19(3)(1)), MUMBAI

The assessee has made cash deposits of Rs. 12,80,000/- in Axis Bank, Churchgate and Yes Bank, Nariman Point in SBN notes during the demonetization period. The assessee has not filed return of income either u/s. 139(1) or in response to notice issued u/s. 142(1).

The assessee did not respond to the further notices issued and therefore, the A.O passed ex-parte order making addition of Rs.

1. 34,69,355/-. The A.O also initiated penalty u/s. 271AAC during the assessment proceedings. As the assessee did not respond to the penalty notices issued, the A.O levied penalty of Rs. 2,68,008/- u/s.271AAC(1) . The assessee filed appeal before Ld.CIT(A) against the penalty order with delay of 1 year 5 months and 2 days along with petition to condone the delay in filing appeal. However, Ld.CIT(A) did not condone the delay and dismissed the appeal as not maintainable.

The Learned Authorized Representative (Ld.AR) at the outset, submitted that the penalty order has been passed ex-parte by the A.O and Ld.CIT(A) has dismissed the appeal as not maintainable, by not condoning delay in filling the appeal. The Ld.AR has submitted that there was sufficient cause in not filing appeal in time and grave injustice will be caused if appeal is not adjudicated on merit. The Ld AR, therefore prayed for one more opportunity before the Ld CIT(A) .

The Learned Departmental Representative (Ld.DR) relied on orders of lower authorities and submitted that the assessee has not complied all along and therefore appeal should be dismissed.

We have considered the rival submission and perused the materials available on record. We find that the penalty order in this case has been passed ex-parte and Ld.CIT(A) has not admitted the appeal as the appeal was filed with delay of about 1 year 5 months 2 days. The assessee has given reasons for not filling appeal in time, which should have been considered by the Ld. CIT(A). We therefore, are of opinion that one more opportunity should be given to the assessee before the Ld.CIT(A) to decide the appeal on merit. The Ld.CIT(A) is therefore, directed to condone the delay in filling appeal and adjudicate the appeal on the merit. The assessee is directed to co-operate with the notices issued by Ld. CIT(A). In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.

In the result, the appeal filed by the assessee is allowed for statistical purposes.