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Facts
The assessee filed a return of income for AY 2015-16. The case was completed under section 147 r.w.s. 144B with an addition for unexplained money. The assessee appealed to the Ld. CIT(A), which was dismissed ex-parte on grounds of limitation due to a 144-day delay.
Held
The Tribunal found that the assessee's grounds for delay might be reasonable and directed the assessee to file an affidavit with supporting evidence before the Ld. CIT(A). The matter was remanded to the Ld. CIT(A) for fresh adjudication after considering the evidence and affording a reasonable opportunity of being heard.
Key Issues
Whether the Ld. CIT(A) erred in dismissing the appeal on grounds of limitation without considering the merits, and if sufficient cause for delay was presented.
Sections Cited
250, 147, 144B, 148, 69A, 115BBE, 249(2)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “C”, MUMBAI
O R D E R Per Anikesh Banerjee, JM:
The Instant appeal of the assessee was filed against the order of the Learned Commissioner of Income-tax (Appeals)-52, Mumbai [for brevity, ‘ Ld.CIT(A)’] passed under section 250 of the Income-tax Act, 1961 (in short, the Act’) for Assessment Year 2015-16, date of order 20/07/2025. The impugned order emanated from the order of the Assessment Unit, Income Tax Department (in short, ‘Ld.AO’) passed under section 147 r.w.s. 144B of the Act, date of order 27/05/2023.
Prakash Kalpesh Jhaveri 2. The brief facts of the case are that the assessee filed the return of income for the impugned assessment year declaring total income at Rs.94,82,370/-. In pursuance of notice u/s 148, assessee filed the return, and the case was completed u/s 147 r.ws. 144B of the Act with an addition of Rs.74,22,000/- u/s 69A r.w.s. 115BBE by treating profits from derivative e transactions as unexplained money. The aggrieved assessee challenged both, merit of the issue and also the legal grounds related to jurisdiction u/s 148 of the Act before the Ld. CIT(A). The Ld.CIT(A) passed an exparte order without considering the merit of assessee’s case. The Ld.CIT(A) in the order mentioned that the assessee filed the appeal with a delay of 144 days, so for contravening provisions of section 249(2) of the Act, the Ld.CIT(A) rejected the appeal on the ground of limitation without considering the merit of the case. Being aggrieved, assessee filed an appeal before us.
The Ld. AR submitted that there existed reasonable grounds for the delay in filing the appeal before the Ld. CIT(A). The Ld. AR further presented an affidavit before the Bench explaining the reasons for the delay and seeking condonation of the same. Considering the facts and circumstances of the case, the Bench directed the Ld. AR to file the affidavit along with supporting evidence before the Ld. CIT(A) in respect of the 144-day delay in filing the appeal.
The Ld. DR accepted the proposal made by the Bench during the course of hearing and raised no objection in this regard.
In our considered view, the matter is remanded to the file of the Ld. CIT(A). The assessee is directed to submit the affidavit along with all relevant supporting documents before the Ld. CIT(A) for fresh adjudication. The Ld. CIT(A) is instructed to accept these documents and afford the assessee a reasonable Prakash Kalpesh Jhaveri opportunity of being heard in the set-aside proceedings. The Ld. CIT(A) shall also examine the reasons for the delay in filing the appeal and pass a reasoned (speaking) order after due consideration of the evidence furnished by the assessee. The assessee is, in turn, directed to act diligently and extend full cooperation during the remand proceedings. We make no observations on the merits of the case, so as not to prejudice the outcome of the de novo appellate proceedings. Accordingly, the appeal stands restored to the file of the Ld. CIT(A) with the directions stated above.
In the result, appeal of the assessee bearing is allowed for statistical purpose. Order pronounced in the open court on _____ /10/ 2025 under Rule 34(4) of Income Tax (Appellate Tribunal) Rules, 1963.