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Facts
The assessee purchased agricultural land and faced an addition to his income by the AO treating the purchase amount as undisclosed property under Section 69A. The CIT(A) dismissed the assessee's appeal due to a delay of 24 days without adjudicating on merits.
Held
The Tribunal found the delay in filing the appeal before the CIT(A) to be genuine and condoned it. Since the merits of the case were not decided, the Tribunal remanded the matter back to the CIT(A) for a proper adjudication.
Key Issues
Whether the delay in filing the appeal before the CIT(A) should be condoned, and if so, whether the addition made by the AO on account of purchase of property should be adjudicated on merits.
Sections Cited
69A
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Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
Before: MS. SUCHITRA KAMBLE
O R D E R PER SUCHITRA KAMBLE, JUDICIAL MEMBER:-
This appeal is filed by the Assessee against the appellate order dated 15.09.2025 passed by the Commissioner of Income Tax (Appeals) National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2020-21. The assessee has raised the following grounds of appeal:
2. The learned CIT(A) erred in law and on facts by not condoning the delay in Filling of Appeal, such delay is requested to be condoned. Prahladbhai Kachrabhai Patel. Vs. The ITO - 2– The learned CIT(A) erred in law and on facts in confirming the AO's addition of Rs.2,50,000/-being the amount of purchase of plot treating the same as undisclosed under Section 69A of the Income Tac Act, 1961, such addition is requested to be deleted.
3. The assessee is an individual and filed his return of income for A.Y 2020-21, declaring total income of Rs.5,76,10/-. The assessee had purchased the agriculture land from Jayprakash D Chirpal. A search and survey actions were carried out on different premises related to Chiripal group of Kheda and Ahmedabad on 20.07.2022. During the course of search action, evidences of the immovable property transactions i.e., various handwritten noting were found at the residential premises of Shri Kailashnath Upadhyay, a key employee of Chiripal Group. The details of the transaction and the veracity of the documents were also verified during the statement of Shri Kailashnath Upadhyay and he has accepted the same along with the confirmation of cash payment in this deal. Details of this transaction were also confronted with the purchaser and the seller. The seller and the purchaser did not submit any cogent evidence to prove that the cash component was not involved in this transaction. Therefore, the Assessing Officer added the same to the income of the assessee.
Being aggrieved by the assessment order, the assessee filed an appeal before the Ld.CIT(A). The Ld.CIT(A), dismissed the appeal of the assessee in limini. Prahladbhai Kachrabhai Patel. Vs. The ITO - 3–
The Ld. AR submitted that the Ld. CIT(A) dismissed the appeal of the assessee solely on the ground of a delay of 24 days without adjudicating the matter on merits. The delay occurred due to unavoidable circumstances, as the assessee’s Authorized Representative was suffering from medical issues and was advised complete bed rest, which resulted in the delay in filing the appeal. The reason for the delay was genuine, and beyond the control of the assessee. Therefore, the delay of 24 days may be condoned. The Ld. AR further prayed that given an opportunity, the assessee shall duly comply with all requirements and furnish all necessary details, clarifications, and explanations before the Revenue authorities.
The Ld.DR relied upon the assessment order and the order of the Ld.CIT(A).
From perusal of the record, I find that the delay in filing the appeal before the Ld.CIT(A) appears to be genuine. Accordingly, the delay in filing the appeal is condoned. Since the matter has not been adjudicated on merits, I deem it appropriate to remand the matter to the file of the Ld. CIT(A) for proper adjudication on merits after verifying all relevant details furnished by the assessee. Needless to say, the assessee shall be afforded due opportunity of being heard in accordance with the principles of natural justice. The assessee shall furnish all relevant documents, evidences, and bank details before the Revenue authorities and to comply with the notices issued by the Ld. Prahladbhai Kachrabhai Patel. Vs. The ITO - 4– CIT(A) without seeking unnecessary adjournments. Accordingly, the appeal of the assessee is allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.