LAKSHMI AGENCIES,TIRUPUR vs. ITO, WARD-1(1), TIRUPUR

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ITA 1223/CHNY/2026Status: DisposedITAT Chennai19 May 2026AY 2017-184 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal before it, citing bonafide reasons. It then remitted the appeal back to the CIT(A) for fresh consideration of the delay petition and, if condoned, for adjudication on merits.

What were the facts?

The assessee filed a return declaring Nil income. The Assessing Officer reopened the assessment due to discrepancies and assessed income at Rs. 24,69,420/-. The assessee's appeal before the CIT(A) was dismissed in limine due to a delay.

What were the issues?

Whether the delay in filing the appeal before the CIT(A) was justifiable and whether the appeal should be considered on merits.

Which sections of the Income-tax Act were involved?

Section 147,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI

Before: MS. PADMAVATHY.S & SHRI MANU KUMAR GIRI

For Respondent: Mr. Gautam S.Mukundan, JCIT

आदेश / O R D E R

PER PADMAVATHY.S, A.M: This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, (in short "CIT(A)") passed u/s. 250 of the Income Tax Act, 1961 (in short "the Act") dated 29.12.2023 for Assessment Year (AY) 2017-18.

2.

The assessee is an individual and filed the return of income for AY 2017-18 on 07.09.2017 declaring Nil income. The A.O noticed that there is huge variations between the revenue as per financial statements and the balance deposited in the bank account of the assessee. Accordingly, the A.O

ITA No.1223/Chny/2026 Lakshmi Agencies :- 2 -:

reopened the assessment. The assessee made certain submission before the A.O with regard to unsecured loans and cash sales. The A.O assessed the income of the assessee at Rs. 24,69,420/- while completing the assessment u/s. 147 of the Act. Aggrieved, the assessee filed further appeal before the CIT(A). There is a delay of 144 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).

3.

There is a delay of 732 days in filing the appeal by the assessee. The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. The assessee has stated in the affidavit due to health conditions and financial crisis the assessee could not concentrate on tax matters. Accordingly, the assessee submitted that the reasons for the delay are bonafide and prayed for condonation. 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.

4.

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 accordingly prayed for one more opportunity.

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From the perusal of records we notice that the assessee has stated the reasons for delay in filing the appeal before the CIT(A) as part of Form 35 and did not file any separate condonation petition or affidavit explaining the reasons. Considering the facts and circumstances unique to the assessee's case, we are inclined to give one more opportunity to the assessee in the interest of natural justice and fair play. Further, lower authorities have not examined the impugned issue on merits since the assessee did not respond to AO's notices and that the CIT(A) has dismissed the appeal in limine. We therefore, remit the appeal back to the CIT(A) for fresh consideration of the delay petition and if the delay is condoned also to consider the impugned issue on merits by calling for necessary details as may be required in order to decide the case in accordance with law. The assessee is directed to file affidavit explaining the reason for delay in filing the appeal along with a condonation petition. The assessee further directed to file any further details as may be called for with regard to the impugned additions made by the AO and cooperate with appellate proceedings without seeking unnecessary adjournments. It is ordered accordingly.

5.

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).

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6.

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

Order pronounced on 19th day of May, 2026 at Chennai.

Sd/- Sd/- (मनु कुमार िग!र) (पदमावती यस) (Manu Kumar Giri) (Padmavathy.S) �याियक सद�य �याियक सद�य / Judicial Member लेखा लेखा सद�य लेखा लेखा सद�य सद�य /Accountant Member सद�य �याियक �याियक सद�य सद�य चे�नई/Chennai, �दनांक/Dated: 19th May, 2026. EDN, Sr. P.S आदेश क� �ितिल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकर आयु!/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय �ितिनिध/DR 5. गाड� फाईल/GF EJTADA Digitally signed by EJTADA DURGA DURGA NARESH Date: 2026.06.01 NARESH 14:31:16 +05'30'

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