BLACK AND WHITE GRANITES,CHENNAI vs. INCOME TAX OFFICER, CHENNAI

Brief facts of the case are that the assessee is a partnership firm and did not file its return of income for A.Y.2019-20. As per information available with the department, the AO found that the assessee has made Imports from Japan as per Bill of Entry Rs.34,11,475/- for an assessable value of Rs.39,87,826/- during the FY 2018-19. The case was re-opened u/s.147 of the Act, accordingly a notice u/s.148 of the Act and other statutory notices were issued to the assessee and by calling for details. Since, the assessee chose to be silent and did not respond to any of the notices, the AO made an addition of Rs.39,87,826/- as unexplained investment u/s.69 r.w.s 115BBE of the Act by arriving at a total income of Rs.39,87,826/- and completed the assessment by passing an exparte order u/s.147 r.w.s 144 of the Act dated 27.03.2024.

Aggrieved by the order of the AO, the assessee preferred an appeal before the ld.CIT(A), NFAC, Delhi on 21.09.2024 with a delay in filing an appeal.

At the outset, we observed that the ld.CIT(A) dismissed the appeal filed by the assessee in limine due to delay in filing an appeal by 148 days. Aggrieved by the impugned order of the Ld.CIT(A), the assessee is in appeal before us. We note that the none appeared before us for representing the assessee’s appeal.

Per contra, the ld.DR supported the order of lower authorities.

We have heard the ld.DR and perused the material available on record and gone through the orders of the lower authorities. We note that the AO has passed an exparte order by considering the information available with the department and on appeal the same has been dismissed in limine by the ld.CIT(A), NFAC due to delay in filing the appeal before the first appellate authority.

Therefore, in the present facts and circumstances of the case and to meet the ends of justice, we deem it fit to provide one more opportunity to the assessee. Therefore, we condone the delay in filing the appeal before ld.CIT(A) as the assessee had filed the condonation of delay in his form 35 itself and hence, we set aside the order of the ld.CIT(A) and remit the matter back to the file of AO and direct the AO to denovo frame the assessment order in accordance with law, after providing reasonable opportunity to the assessee. Needless to say, the assessee to be diligent and file written submissions and relevant documents if advised so.

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