MULLAI RECREATION CLUB,CHENNAI vs. ITO, NCW-8(2), CHENNAI

The assessee is an association of persons and did not file the return of income. The A.O received information that the assessee has made cash deposits to the tune of Rs.34,48,000/- during the demonetization period. The A.O issued notice u/s. 133(6) of the Act to the Bank in which the assessee is

There is a delay of 574 days in filing the appeal before the Tribunal and the assessee filed an affidavit along with petition for condonation of delay. It is stated that the assessee has entrusted the appellate proceedings to the tax practitioner who failed to actively monitor the proceedings and did not represent the case. It is further stated that the notices issued by the CIT(A) was sent through the wrong email address and that the assessee has specifically stated in the Form-35 that the notices and communications are not to be sent through email. It is also stated that only when the bank account of the assessee was attached the assessee came to know that the CIT(A) has passed an ex-parte order and the assessee then immediately filed the appeal before the Tribunal. Accordingly, it is stated that the reason for the delay in filing the appeal before us is bonafide. Having heard both the parties and perused the material on record, we are of the view that there is a reasonable and sufficient cause for the delay in filing the appeal before the Tribunal. Therefore following the Hon’ble Supreme Court decision in the case of

We have heard the parties, and perused the material available on record. The Ld. Authorized Representative (AR) of the assessee submitted that the assessee is not aware of the income tax proceedings and completely relied on his counsel for handling the tax matters. The Ld. AR further submitted that the counsel of the assessee did not provide proper professional support and therefore the assessee was not aware that the A.O has passed the assessment order. The Ld. AR also drew our attention to the notices sent by the CIT(A) to an email ID which is not mentioned by the assessee in Form- 35. The Ld. AR accordingly prayed for one more opportunity. Considering the facts and circumstances peculiar to assessee's case, we are inclined to give one more opportunity to the assessee to substantiate the claim by producing the required details. Accordingly we remit the appeal back to the AO with a direction to call for necessary details and decide the issue in accordance with law. The assessee is required to submit the necessary details as may be called for and cooperate with assessment proceedings. It is ordered accordingly.

Further, we also levy a cost of Rs.10,000/- (Ten thousand only) in the appeal since considerable time and efforts have been spent by the Exchequer and for the reason that the assessee being delinquent before the lower authorities. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the A.O.

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