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Facts
The assessee, a senior citizen, inherited her deceased husband's liquor business and other income. Her appeals for AY 2018-19 and 2019-20 were filed late due to reasons explained in an affidavit. The CIT(A) passed ex-parte orders as the assessee could not attend proceedings.
Held
The Tribunal condoned the delay in filing the appeals. It restored the issues related to cash payments and TDS/TCS credit to the file of the AO for fresh examination, considering the peculiar facts and the ex-parte nature of the orders.
Key Issues
Whether the delay in filing the appeal should be condoned and if the AO should re-examine the disallowance of cash payments and credit for TDS/TCS.
Sections Cited
143(1), 40A(3)
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Income Tax Appellate Tribunal, “F” BENCH, MUMBAI
Before: SHRI SAKTIJIT DEY, HON’BLE & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE
Assessee by : Shri Shashank Mehta, A/R Revenue by : Ms. Kavitha Kaushik, Sr. D/R सुनवाई की तारीख/Date of Hearing : 13/10/2025 घोषणा की तारीख /Date of Pronouncement : 15/10/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: & 6047/Mum/2025, are two separate appeals by the assessee preferred against two separate orders of the ld. CIT(A)/Addl./JCIT(A)-2, Jaipur [hereinafter ‘the ld. CIT(A)’] dated 20/05/2024 & 09/01/2024 respectively, pertaining to AY 2018-19 and 2019-20.
Since common grievance is involved in both the appeals, they were heard together and are disposed off by this common order for the sake of convenience and brevity.
Appeal for AY 2018-19 is late by 437 days and that of AY 2019-20 is late by 586 days. The assessee has filed an affidavit stating the facts in filing the appeal after the period of limitation.
We have carefully perused the contents of the affidavit and given a thoughtful consideration to the facts of the causing the delay in filing the appeal. Though, the ld. D/R has strongly objected for the I.T.A. Nos. 6048 & 6047/Mum/2025 2 condonation of delay but we are convinced that the assessee was prevented by reasonable and sufficient cause for not filing the appeal on time. The delay is, therefore condoned.
Having heard the representatives, we have carefully perused the orders of the authorities below. The assessee preferred appeal before the ld. CIT(A) after receiving intimation u/s 143(1) of the Act. The appellate proceedings could not be attended and the ld. CIT(A) passed an ex-parte order.
Briefly stated, the facts of the case are that the assessee is a widowed senior citizen earning income from business inherited from her late husband and also earns rental income from other sources. The husband of the assessee was carrying on the business of selling liquor under the trade name of Olympic Wines but expired on 06/08/2017 i.e., during FY 2017-18. The assessee inherited the business of her deceased husband and filed her return of income on 31/08/2018 when it was brought to her notice that income up to the date of death also has to be included in her return of income i.e., business income which is subjected to tax audit. Thereafter, the assessee declared total income of Rs. 38,04,700/- in her revised return of income which was filed along with the tax audit report. 6.1. Because of some legal formalities, the assessee could not operate the bank account but in the intervening period, the creditors were paid in cash amounting to Rs. 45,81,894/-. Since the auditor has mentioned the cash payment in the audit report while processing the return of income, the same was disallowed u/s 40A(3) of the Act. 6.2. As mentioned elsewhere, the appellate proceedings could not be attended and the ld. CIT(A) passed an ex-parte order and the assessee I.T.A. Nos. 6048 & 6047/Mum/2025 3