Loading judgment…
Facts
The assessee's appeal was filed with a delay of 190 days due to the death of key directors handling tax matters and subsequent company audits. The Assessing Officer made an addition of Rs.69,60,750/- on account of interest. The Commissioner upheld the assessment order after a remand report.
Held
The Tribunal condoned the delay in filing the appeal due to peculiar circumstances. The Tribunal found that the assessee was not properly represented before the lower authorities, and therefore, in the interest of justice, remanded the case back to the Commissioner for a fresh decision.
Key Issues
Whether the appeal delay should be condoned due to death of directors and whether the case should be remanded for fresh adjudication considering the peculiar facts.
Sections Cited
250, 147, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “B”, MUMBAI
Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI OMKARESHWAR CHIDARA
Per : Narender Kumar Choudhry, Judicial Member:
These appeals have been preferred by the Assessee against the orders even dated 02.07.2024, impugned herein, passed by the National Faceless Appeal Center (NFAC)/ Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) under section 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2012-13 & 2013-14.
At the outset, we observe that there is a delay of 190 days in filing of the instant appeal, on which the Assessee has claimed that the Assessee’s company was subject to audit under the provision of Companies Act, 2013 and was duly audited by the statutory Auditor for all the years including the assessment year under consideration. Accounts of the Assessee were audited by Divya Chandramouli & Associates, Chartered Accountants. Thereafter the tax related matters were attended by Mr. Paramjit Singh Chandok being director of the Assessee company somehow who passed away on 14.12.2018 and thereafter the tax matters were handled by Mr. Harwant Singh D. Sethi, being director of Assessee Company who also passed away on 27.07.2023. The Assessee in support of its claim has filed duly sworn affidavit dated 08.07.2025. Considering the peculiar facts and circumstances, as the factual aspect is not in denial as stated above, thus the delay in filing the instant appeal is condoned and the case is proceeded with the merits of the case.
Both the cases are inter connected having involved identical issues, therefore for the sake of brevity, the same were heard together and are being disposed of by this composite order by considering as a lead case.
Coming to the instant case, we observe that the Assessing Officer (AO) vide assessment order dated 03.12.2019 u/s 147 r.w.s. 144 of the Act has made the addition of Rs.69,60,750/- on account of interest.
The Assessee, being aggrieved, challenged the said addition before the Ld. Commissioner and filed its submission on dated 09.03.2021. On perusing the same, the Ld. Commissioner sought for remand from the AO, who submitted its remand report dated 14.09.2023. Thus, the Ld. Commissioner by considering remand report as well as the peculiar facts that the Assessee has not provided any evidence during the appellate proceedings regarding the said expenses, held the assessment order as valid and consequently dismissed the appeal of the Assessee.
The Assessee, being aggrieved, has preferred the instant appeal before this Tribunal.
The Assessee has claimed that initially the tax proceedings were handled by Mr. Paramjit Singh Chandok, being Director of the Assessee Company who unfortunately died on 14.12.2018. Further, summons were issued to one of the directors Mr. Harwant Singh D. Sethi, who also passed away on 27.07.2023. Therefore, the Assessee remained to be represented before the Ld. Commissioner which resulted into passing the impugned order as ex-parte and therefore in the interest of justice, one opportunity may be given to the Assessee. The Assessee, in support of its contention also filed duly sworn affidavit dated 08.07.2025 of Mr. Narinder Singh Bakshi, being a Director of the Assessee company.
Considering the aforesaid peculiar facts and circumstances as not refuted by the Ld. D.R. as well, we, for just and proper justice of the case and substantial justice, are inclined to remand the instant case to the file of the Ld. Commissioner for decision afresh, suffice to say,by affording reasonable opportunity of being heard to the Assessee. Thus, it is ordered accordingly. in view of our judgment in this case is also remanded to the file of the Ld. Commissioner for decision afresh.
In the result, both the appeals under consideration are allowed for statistical purposes in the above terms.
Order pronounced in the open court on 30.07.2025.