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Facts
The assessee filed an appeal against an order confirming an addition of Rs. 15,00,000 as unexplained money. There was a delay of 426 days in filing the appeal due to the assessee's severe health issues. The assessee failed to comply with notices and provide documents before the Commissioner (Appeals).
Held
The Tribunal condoned the delay of 426 days, finding the assessee's reasons to be bonafide. However, due to the assessee's failure to comply with procedural requirements and the need for proper adjudication, the case was remanded to the Commissioner (Appeals) for a fresh decision.
Key Issues
Whether the delay in filing the appeal can be condoned, and whether the case should be remanded for a fresh adjudication despite the assessee's non-compliance.
Sections Cited
250, 144, 69A, 144
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Income Tax Appellate Tribunal, BANGALORE BENCH “SMC”, BANGALORE
Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI WASEEM AHMED
Per : Narender Kumar Choudhry, Judicial Member:
This appeal has been preferred by the Assessee against the order dated 22.09.2023, impugned herein, passed by the National Faceless Appeal Center (NFAC)/ Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2017-18.
At the outset, we observe that there is a delay of 426 days in filing the instant case, for which the Assessee by filing an application for condonation of delay application, has contended that due to severe health issues the Assessee was facing and therefore he was undergoing treatment for various serious medical issues, which significantly impaired his inability to attend financial and legal obligations, including timely filing of the appeal and thus, the appeal could not be filed within the prescribed period. The Assessee regrets for this delay and, therefore, request the Court to consider the application for condonation of delay. The Assessee committed to comply with all future procedural requirements and will take every step necessary to ensure timely proceedings. On the contrary, Ld. Sr. Standing Counsel for the Department refuted the claim of the Assessee. Considering the medical condition of the Assessee as contended by the Assessee by filing a condonation petition, we observe that the reasons stated by the Assessee for condoning the delay, prima facie appears to be bonafide, reasonable and unintentional and, therefore, we are inclined to condone the delay. Thus, delay of 426 days is condoned and the appeal is admitted for adjudication.
Coming to the merits of the case, we observe that in the instant case, the Assessing Officer vide assessment order dated 23.8.2019 u/s.144 of the Act has made the addition of Rs.15,00,000/- as unexplained money u/s.69A of the Act, against which the Assessee being aggrieved though filed first appeal before the Ld. Commissioner, however, despite of affording various opportunities, failed to comply with the notices and/or failed to file any submissions and documents, therefore, in the constrained circumstances, the Ld. Commissioner having left with no option, affirmed the aforesaid addition, by dismissing the appeal of the Assessee.
We have given thoughtful consideration to the peculiar facts and circumstances of the case and the submission of Ld. Sr. DR. Though the Assessee due to medical issues has committed mistake by not complying with the notices issued by the Ld. Commissioner and filing the relevant documents and/or submissions, however it is fact that the issue involved in this case, also remained to be adjudicated in its right perspective and proper manner. Thus, for proper and just decision of the case and for rendering substantial justice, we are remanding the case to the file of the Ld. Commissioner for deciding the issue afresh, suffice to say by affording reasonable opportunity of hearing to the Assessee subject to cost of Rs.1000/- to be deposited in the Revenue Department under “other heads”.
In the result, the appeal of the Assessee is allowed for statistical purposes.
Order pronounced in the open court on 13.08.2025.