GANESHAN MANIMARAN,BANGALORE vs. COMMISSIONER OF INCOME TAX (APPEAL), BANGALORE

The assessee is an individual. He filed return of income for Assessment Year 2017-18 declaring a total income of Rs.11,54,750/-. The assessee had deposited cash in 2 bank accounts maintained by him in Canara Bank, Cox Town, Bengaluru, totaling a sum of Rs.30,30,318/-. The assessee was called upon to explain the source of funds out of which the aforesaid cash deposits were made especially during the demonetization period. Since there was no response from the assessee, the CIT(A) added a sum of Rs.30,30,318/- as unexplained cash deposits under section 68 of the Act and computed tax liability as per the provisions of section 115BBE of the Income Tax Act, 1961 (hereinafter called ‘the Act’).

Aggrieved by the aforesaid order dated 05.12.2019, the assessee filed appeal before the CIT(A). There was a delay of about 58 days. The reasons for filing the appeal belatedly was given by the assessee as follows:

"The reason for delay was that the tax consultant assured me for filing thc appeal in time but he could not do it. On receipt of payment of demand notice by A.O. dated 23-01-2020, I appeared before A.O. to know the consequence thereof. But A.O. directed me to file an appeal against the said order and get the stay after payment of 20 percent of demand. On advice of A.O. I approached C R Nulvi CA on 06-02-2020 and I come to know that he was out of country. Only after his arrival I am preferring this appeal on 02-03-2020 the delay was beyond my control and not intentional, laxity or negligent on my part. Herewith I attached affidavit duly notarized."

CIT(A) did not accept the plea of the assessee on the ground that the Chartered Accountant who assured the assessee that he would file the appeal did not file affidavit to support the claim of the assessee. Following were the relevant observations of the CIT(A):

Aggrieved by the order of the CIT(A) refusing to condone the delay in filing the appeal, the assessee is before the Tribunal in the present appeal.

I have heard the rival submissions. It is clear from the order of the CIT(A) that he has accepted the affidavit of the assessee wherein the assessee has confirmed that erstwhile Chartered Accountant assured that he will file the appeal against the Order of Assessment within the time but did not do so. This fact by itself is sufficient to condone the delay in filing the appeal. The CIT(A) cannot insist on the Chartered Accountant to give reasons why he did not file the appeal as instructed by the assessee. In other words, the reasons assigned for not condoning the delay are purely technical and I am of the view that the technicalities should not stand in the way of substantive justice and prevent the assessee being heard on merits of the grievances projected against the Order of Assessment before the CIT(A). I therefore codone the delay in filing the appeal by the Assessee before CIT(A) and direct the CIT(A) to decide the appeal of the Assessee on merits after affording Assessee opportunity of being heard.