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Facts
The assessee filed an appeal with a delay of 135 days due to the assessee's health. The assessee had declared an income of ₹27,29,840, but the assessment was framed at ₹12,37,55,845 due to disallowances for lack of supporting documents.
Held
The Tribunal condoned the delay after finding reasonable cause. The Tribunal set aside the issue to the AO for fresh adjudication, allowing the assessee to file additional evidence, and allowed the appeal for statistical purposes.
Key Issues
Whether the delay in filing the appeal can be condoned, and whether the disallowances made by the AO for lack of supporting documents require fresh adjudication by the AO.
Sections Cited
143(3), 144B, 69C, 37
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Income Tax Appellate Tribunal, ‘B’ BENCH, BANGALORE
Before: SHRI WASEEM AHMED & SHRI KESHAV DUBEY
PER WASEEM AHMED, ACCOUNTANT MEMBER:
This is an appeal filed by the assessee against the order passed by the NFAC, Delhi dated 27/08/2024 in DIN No. ITBA/NFAC/S/250/ 2024-25/1068010132(1) for the assessment year 2021-22.
In the present case, there was a delay of 135 days in filing the appeal before the Tribunal. At the time of the hearing, the learned counsel submitted that the delay in filing the appeal was due to the assessee’s health. In support of this contention, the Ld. AR submitted hospital certificates justifying the genuine reason which prevented the assessee from filing the appeal within the prescribed time. Accordingly, the learned AR requested that the delay be condoned and that the issue be decided on merit.
On the other hand, the learned DR, considering the reasons for the delay in filing the appeal, did not raise any objection if the delay is condoned and the appeal is decided on merit.
After having heard both parties and perused the materials available on record, we find that there was reasonable cause which prevented the assessee from filing the appeal within the stipulated time. Accordingly, we condone the delay and proceed to adjudicate the issue on merit. Merits of the Case: 5. At the outset, we note that the assessee filed the return of income declaring an income of ₹27,29,840.00 only. However, the assessment was framed under section 143(3) read with section 144B of the Act, determining the income at ₹12,37,55,845.00. The AO, for want of supporting documents, made the disallowance under various heads, as detailed below: “In response to the above show cause notice the assessee has not uploaded any details till the date of this order. In view of the above, the assessment is finalized as under:
Aggrieved, the assessee preferred an appeal to the learned CIT(A), who also upheld the findings of the AO, holding that the assessee had not furnished the necessary documents.
Being further aggrieved by the order of the learned CIT(A), the assessee is now in appeal before us.
Before us, the learned AR filed a paper book running from pages 1 to 288 and contended that all the requisite details had already been filed by the assessee, but the same were not considered by the authorities below while making the disallowance of purchases and expenses. Accordingly, the learned AR prayed that the matter be remitted back to the AO for fresh adjudication as per the provisions of law. The learned AR also sought liberty to file additional evidence in support of the claims made in the return of income.
The learned DR, on the other hand, did not raise any objection to setting aside the issue to the file of the AO for fresh adjudication in accordance with law.
We have heard the rival contentions of both parties and perused the materials available on record. From the preceding discussion, we note that the assessee had not earlier filed the copies of the confirmations and ledger accounts of the suppliers, leading to disallowance by the AO, which was upheld by the learned CIT(A).
10.1 Now, the assessee has filed before us copies of vendor confirmations and their ledger accounts, placed on pages 218 to 288 of the paper book. In our considered view, verification of these documents is essential at the level of the AO. Therefore, in the interest of justice and fair play, we set aside the issue to the AO for fresh adjudication in accordance with law.
10.2 It is also directed that the assessee shall ensure necessary compliance during the proceedings before the AO and avoid any unwarranted adjournments. The assessee is also at liberty to file any other piece of evidence in support of the claims made in the return of income concerning the disputed items. Hence, the ground of appeal raised by the assessee is allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in court on 23rd day of May, 2025