IMC OF HIGHER LEVEL GOVERNMENT ITI NAGPUR SCP,NAGPUR vs. DCIT/ACIT CIRCLE-1 NAGPUR, NAGPUR

At the outset, ld. Counsel for the assessee submitted that there was delay of 470 days in filing of appeal before ld.CIT(A) which has not been condoned by ld.CIT(A) and appeal dismissed as barred by limitation. The assessee runs a Government ITI under the centrally sponsored scheme and exist solely for educational purposes. Assessment order concluded on 31.03.2022 making addition for interest income of Rs.25,20,836/-. Assessee preferred appeal before ld.CIT(A) on 16.08.2023 with a delay of 470 days. Delay before ld.CIT(A)

On the other hand, ld. DR supported the order of ld.CIT(A).

I have heard the rival contentions and perused the record placed before me. As per the record, I note that the assessee is a Firm and case of the assessee reopened on the ground that assessee has invested of time deposits amounting to Rs.82,90,000/- and interest income of Rs.25,20,836/-. In response to notice u/s.148 of the Act, assessee filed return of income on 14.03.2022, however, the said return is beyond the due date. In compliance to notice u/s.142(1) of the Act, asssessee furnished its reply along with documentary evidences. During the course of assessment proceedings, ld. Assessing Officer observed that though the assessee’s status is claimed as an “AOP/BOI” in its return of income but as per PAN database the status of the assessee is ‘Firm’. Ld. Assessing Officer observed that assessee earned interest income of Rs.25,20,936/- and claimed exemption u/s.10(23C)(iiiad) of the Act. In absence of furnishing of Registration Certificate, ld. Assessing Officer concluded the assessment proceedings making addition of alleged interest income. Aggrieved assessee preferred appeal before ld.CIT(A) but with a delay of 470 which has not been condoned.

Before me, ld. Counsel for the assessee submitted that the assessee is a Government Institution and due to change of authorised signatory, the authorities have to move the papers for getting approval. In the process of getting approval, the delay has arisen which is not intentional and therefore the said delay deserves condonation.

On perusal of the reasons stated by the assessee, I find that ‘reasonable cause’ prevented the assessee from filing the appeal within the stipulated time. The delay of 470 days before ld.CIT(A) is condoned in light of judgments of Hon’ble Apex Court in the case of Collector, Land Acquisition, Anantnag & Anr. Vs. Mst. Katiji & Ors. reported in (1987) 2 SCC 107 and in the case of Inder Singh Vs. State of Madhya Pradesh judgment dated 21.03.2025 (2025 INSC 382) and admit the appeal for adjudication.

In the instant case, ld.CIT(A) has not adjudicated the appeal on merits. Considering the above contentions of ld. Counsel for the assessee and in the interest of justice, I deem it appropriate to afford one more opportunity to the assessee to substantiate its case. In view thereof, without dwelling into merits of the case, the issues raised in the instant appeal are being remitted to the file of ld.CIT(A) for necessary adjudication. Needless to mention that ld.CIT(A) in the set aside proceedings shall provide reasonable opportunity of hearing to the assessee and consider the documents /evidences/submissions to be filed by the assessee and pass speaking order as contemplated u/s.250(6) of the Act. Assessee is directed to update email and contact details on the

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