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Facts
The assessee's appeal before the CIT(A) was dismissed due to a delay of 374 days without condonation. The assessee is engaged in the business of ticket sale/booking and argued that bank deposits did not represent gross receipts on which commission was earned.
Held
The Tribunal found the reason for the delay to be reasonable and bonafide, condoned the delay, and restored the issue to the Assessing Officer (AO) for re-adjudication. The AO is directed to consider all evidence and provide a reasonable opportunity of hearing.
Key Issues
Whether the delay in filing the appeal before the CIT(A) should be condoned and the matter restored for fresh adjudication on merits.
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Income Tax Appellate Tribunal, `GAUHATI BENCH, GUWAHATI
Before: SHRI DUVVURU RL REDDY, VP & SHRI RAJESH KUMAR, AM
This is an appeal preferred by the assessee against the order of the Commissioner of Income-tax (Appeals)-1, Jaipur (hereinafter referred to as the “Ld. CIT(A)”] dated 11.11.2025 for the AY 2017-18.
The issue raised by the assessee is against the order of ld. CIT (A) confirming the addition at the rate of 8% on total deposits in the bank as made by the ld. AO and assessed the income.
The assessee is engaged in the business of sale of tickets/ booking and therefore, these payments are made to the Air Lines travel agent and hotels, etc. therefore, the entire deposit into the bank did not represent the gross receipt of the assessee on which the assessee has earned commission even less than 1.5%. Therefore, the ld.
The ld. DR on the other hand relied heavily on the orders of the ld. authorities below.
After hearing the rival contentions and perusing the materials available on record, we find that the ld. CIT (A) has dismissed the appeal without deciding the issue on merit by not condoning the delay of 374 days. We have examined the reason for delay in filing the appeal and find the same to be reasonable and bonafide. Accordingly, we condone the delay and restore the issue back to the file of the ld. AO with a direction to re-adjudicate the issue after taking into account all the evidences filed by the assessee. Needless to say that the assessee should be given a reasonable opportunity of hearing before deciding the issue.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on 13.03.2026.