SHREE GARUDA PROMOTERS INDIA PVT. LTD.,COIMBATORE vs. ACIT, CORP. CIRCLE-1,, COIMBATORE

The assessee is a company and engaged in the business of real estate marketing. The assessee did not file the return of income for the AY 2013-14. Since the assessee had significant financial transactions, the A.O issued a notice u/s. 148 of the Act. The assessee neither filed the return of income in response to the notice nor responded to further notices issued by the A.O. The A.O therefore completed the assessment ex-parte making an addition of Rs.2,13,15,900/- as unexplained money u/s. 69A of the Act. Aggrieved, the assessee filed further appeal before the CIT(A). There is a delay of 140 days in filing the appeal before the CIT(A) and the CIT(A) dismissed the appeal in limine. The assessee is in appeal before the Tribunal against the order of the CIT(A).

There is a delay of 733 days in filing the appeal by the assessee. The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. It is submitted that the company has been struck off in the year 2015 and there were no employees to take of the tax matters. Accordingly, it was prayed that the delay may be condoned. 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 Collector, Land Acquisition Vs. MST.Katiji & Ors., (167 ITR 471) (SC), we condone the delay in filing the appeal and admit the appeal for adjudication.

We have heard the parties, and perused the material available on record. The Ld. Authorized Representative (AR) of the assessee submitted that the assessee-company was struck of on the year 2015 and there were no adequate employees to take care of the income tax matters. The Ld. AR further submitted that the assessee completely dependent on the tax consultant who did not handle matter properly and hence the delay. The Ld. AR accordingly prayed that one more opportunity may be given. Considering the facts and circumstances peculiar to assessee's case and in the interest of natural justice, we are inclined to give one more opportunity to the assessee to substantiate the claim by producing the required details. Accordingly, we condone the delay in filing the appeal before the CIT(A) and remit the appeal back to the CIT(A) with the 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 appellate 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 CIT(A).

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