GRENESIIS CONSTRO PVT LTD,PUNE vs. OFFICE OF INCOME TAX TDS-1 , PUNE

Briefly stated, the facts of the case are that the assessee is a private limited company. During the course of assessment proceedings for AY. 2018-19, the Ld. Assessing Officer (“AO”) found that one Smt. Nisha Pramod Korgaonkar has advanced loan to the assessee-company and interest of Rs. 99,66,940/- was also charged, for which the assessee did not deduct TDS. The Ld.AO passed order u/s. 201(1)/201(1A) of the Act on 29-03-2024 holding that the assessee is not eligible for the benefit of proviso to section 201(1) of the Act and treated the assessee as

Aggrieved, the assessee filed appeal before the Ld.ADDL/JCIT(A) but with a delay of 213 days. The Ld.ADDL/JCIT(A), dismissed the appeal of the assessee in limine as inadmissible as he did not find the reason provided by the assessee being “non-availability of staff” to be constituting a sufficient/reasonable cause for condoning the delay. He observed that the assessee ought to have filed an affidavit along with supporting documents to establish that the delay was due to unavoidable circumstances beyond its control and should have also explained the reasons for each day‟s delay, which was not done by the assessee.

Aggrieved, the assessee is in appeal before the Tribunal.

The Ld.AR, at the outset, submitted that admittedly the assessee could not explain the reasons properly for delay in filing of the appeal before the Ld.ADDL/JCIT(A). He submitted that the delay in filing of the appeal was not intentional and the assessee is now in a position to file necessary details along with the affidavit explaining the reasons for the delay in filing of the appeal. He, therefore, submitted that an opportunity may be granted to the assessee to substantiate its case before the Ld.ADDL/JCIT(A) by filing the requisite details/documents.

We have heard the Ld. Representatives of the Parties and perused the material available on record. We find that the Ld.AO has passed the order u/s. 201(1)/201(1A) of the Act, treating the assessee as „assessee-in- default‟ on account of non-deduction of tax on payment(s) made to Smt. Nisha Pramod Korgaonkar and raised a demand of Rs. 18,33,917/- on the assessee. The Ld.ADDL/JCIT(A) dismissed the appeal of the assessee in limine as inadmissible on account of delay in filing of the appeal. Before us, the Ld.Counsel for the assessee has submitted that the delay was not intentional. The assessee could not explain the reasons for the delay in a proper manner before the Ld.ADDL/JCIT(A) and also failed to file any application for condonation of delay along with supporting affidavit. He has therefore humbly prayed that an opportunity may be granted to the assessee to substantiate its case before the Ld.ADDL/JCIT(A) by filing the requisite details/documents.

We find that the Hon'ble Supreme Court in the case of Vidya Shankar Jaiswal vs. ITO vide Special Leave Petition (Civil) Nos. 26310-26311/2024, order dt. 31-01-2025 has held that a justice oriented and liberal approach ought to be adopted while considering the aspect of condoning the delay involved in filing of the appeal. Under these circumstances and considering the totality of facts, we deem it fit, in the interest of justice to set aside the order of the Ld.ADDL/JCIT(A) with a direction to decide the assessee‟s appeal afresh, after affording due opportunity of hearing to the assessee. The assessee is directed to explain/substantiate its case for the delay in filing of the appeal before the Ld.ADDL/JCIT(A) by filing requisite details/documents. The Ld.ADDL/JCIT(A) shall be at liberty to consider

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