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Facts
The assessee, a coconut trader, faced an addition of Rs. 11,33,828/- for suppressed sales receipts following large cash deposits, as assessed under Section 143(3) of the Act. The CIT(A) subsequently dismissed the assessee's appeal due to a lack of documentary evidence, despite providing multiple opportunities.
Held
The ITAT condoned a 131-day delay in filing the appeal, accepting the assessee's claim of unawareness due to the non-availability of a Chartered Accountant and becoming aware only upon recovery proceedings. The Tribunal set aside the CIT(A)'s order and remitted the matter back to the CIT(A) for fresh adjudication, granting the assessee another reasonable opportunity to present documentary evidence, thus allowing the appeal for statistical purposes.
Key Issues
Whether the delay in filing the appeal should be condoned; whether the assessee was provided adequate opportunity to present evidence before the CIT(A); validity of the addition made by the AO for suppressed sales receipts.
Sections Cited
143(3), 142(1)
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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI S.R.RAGHUNATHA
आदेश / O R D E R
PER S.R.RAGHUNATHA, AM :
This appeal by the assessee is arising out of the order dated 16.02.2025, passed by the Learned Commissioner of Income Tax (Appeal), NFAC, Addl/JCIT(A), Ranchi (in short “ld.CIT(A)”) for the assessment year (A.Y) 2017-18 against the order u/s.143(3) of the Income Tax Act, 1961 (hereinafter the ‘Act’) passed by the AO dated 31.12.2019.
At the outset, we find that there is a delay of 131 days before us in the appeal filed by the assessee, for which the assessee has filed affidavit stating the reasons for delay, wherein, it is submitted that the assessee was unaware of the order of the ld.CIT(A) uploaded in the Income-Tax e-filing portal due to non-availability of Chartered Accountant for the relevant period and the assessee became aware of the impugned order only on commencement of recovery proceedings by the Income Tax Department on 22.08.2025. Hence, there was a delay in filing the appeal by the assessee. After considering the Affidavit filed by the assessee and also hearing both the parties, we find that there is a reasonable cause for the assessee in not filing appeal on or before the due date prescribed under the law and thus, in the interests of justice, we condone delay in filing of appeals and admit the appeals filed by the assessee for adjudication.
Brief facts of the case are that the assessee is an individual and engaged in the coconut trading business and has filed his return of income on 16.05.2017 for AY 2017-18, declaring total income of Rs.3,69,317/-. The case was selected for limited scrutiny assessment under CASS for the reason “Large cash deposits in bank account(s)” made by the assessee u/s.143(3) of the Act. The Assessing Officer issued notice 142(1) on 14.10.2019 to furnish the details. In response to the notice, the assessee furnished reply along with the details of bank account statements and other relevant records. On perusal of the documents submitted by the assessee, the Assessing Officer was not convinced due to the difference between the credits and turnover admitted by the assessee was treated as suppression sale receipt and making an addition of Rs.11,33,828/- (8% of sale turnover of Rs.1,41,72,860/-) to the returned income and concluded the assessment proceedings u/s.143(3) of the Act dated 31.12.2019.
Aggrieved by the order of the AO, the assessee preferred an appeal before the ld.CIT(A), Ranchi on 30.01.2020.
At the outset, we observed that ld.CIT(A) has provided six opportunities for the assessee to appear for hearings as detailed in paragraph 6 of the ld.CIT(A) order to support the appeal of the assessee. In response to the fourth notice, the assessee submitted reply without complete documentary evidence. Further, the assessee chose to be silent and did not respond to any of the notices and hence, the ld.CIT(A), Ranchi dismissed the appeal filed by the assessee due to lack of documentary evidence by confirming the order of the AO by passing an order dated 16.02.2025.
The ld.AR submitted that the assessee had not regularly checked the income tax portal and his email due to English illiterate and non-availability of Chartered Accountant during the relevant period and hence he was not aware of the notices issued by the ld.CIT(A) and hence he could not submit the complete documentary evidence before the ld.CIT(A). In view of the above, the ld.AR prayed that the Hon’ble Tribunal may be pleased to set aside the order of CIT(A) and remit the issues to the file of Assessing Officer. Further, ld.AR assured the bench that the ld.AR will represent on behalf of the assessee before the first appellant authority completed the appellate proceedings effectively.
Per contra, the ld.DR submitted that both the Assessing Officer and the ld.CIT(A) provided sufficient opportunity to appear before them. However, the assessee has been negligent in responding to the statutory notices and hence, prayed for confirming the order of the ld.CIT(A).
We have heard the rival parties and perused the material available on record and gone through the orders of the lower authorities. We note that the AO has passed an order by considering the information available with the department and the same has been dismissed by the ld.CIT(A), Ranchi due to lack of documentary evidence before the first appellate authority.
In the present facts and circumstances of the case and to meet the ends of justice, we are deeming it fit to provide one more opportunity to the assessee and hence we set aside the order of the ld.CIT(A) and remit the matter back to the file to ld.CIT(A) to adjudicate the matter afresh in accordance to law, after providing reasonable opportunity to the assessee. Needless to say, assessee to be diligent and file written submissions and relevant documents if advised so.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 02nd December, 2025 at Chennai.