PUNJAB LIQUORS PVT LTD, NEW DELHI,NEW DELHI vs. CIRCLE-20(1), DELHI, DELHI

It is observed that the present appeal is filed belatedly with a delay of 289 days beyond the period of limitation, for which the assessee has filed an affidavit along with an application for condoning the said delay stating the assessee has got “sufficient cause” for the delay. Upon perusal of the same and on hearing the rival contentions, we deem it fit to condone the delay as there being “sufficient cause” explained by the assessee for the said delay in filing the appeal beyond the period of limitation. Accordingly, the delay is condoned.

The assessee has raised the following grounds of appeal.

Brief facts of the case are that, the Assessee’s company is engaged in the business of liquor contractor and had filed its return of income for the year under consideration dated 31/10/2017 declaring total income at Rs. 67,55,760/- and the same is processed u/s 143(1) of the Act. The assessee’s case was selected for scrutiny and notice u/s 143(2) and 142(1) of the Act were duly served to the assessee.

The Ld. A.O. observed that the assessee had deposited huge amount of cash amounting to Rs. 6,56,67,690/- during demonization and had sought for details pertaining to the said cash deposit. After considering the same, the Ld. A.O. then passed the assessment order u/s 143(3) of the Act dated 28/12/2019.

Aggrieved by the assessment order, the assessee was in appeal before the first appellate authority, who vide an order dated 22/02/2025 dismissed the appeal on the ground that the assessee was non-compliant during the appellate proceedings.

Aggrieved, the assessee is in appeal before us, challenging the order of the Ld. CIT(A) on the abovementioned grounds.

We have heard the rival submissions and perused the materials available on record. It is observed that the assessee has challenged the assessment order before the first appellate authority where the Ld. CIT(A) has dismissed the appeal filed by the assessee for non-prosecution.

Though the assessee has raised various grounds, it is observed that the Ld. CIT(A) has not decided the issue in hand on the merits of the case for the reason that in-spite of eight notices issued to the assessee on various dates the assessee was non-compliant throughout the appellate proceedings and has also failed to produce any documentary evidences neither to substantiate its claim nor for contradicting the findings of the lower authority. In order to extend the assessee with one more opportunity to present its case before the first appellate authority, we deem it fit to remand this issue back to the file of the Ld. CIT(A) with a direction that the assessee shall cooperate with the proceedings before the first appellate authority and to produce all relevant documentary evidences in support of its claim. The Ld. CIT(A) is also directed to adjudicate the issues de-novo on the basis of the documentary evidences, if any, filed by the assessee and on the basis of the merits of the case and in accordance with law.

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