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Facts
The assessee, a temple, failed to file its return of income for AY 2018-19. The AO reopened the assessment under Section 147 and added significant amounts for cash deposits, time deposits, and interest income. The CIT(A) dismissed the assessee's appeal due to a delay.
Held
The Tribunal held that the CIT(A) ought to have condoned the delay, considering the facts and circumstances, and decided the appeal on merits. The impugned order was set aside, and the matter was remitted to the CIT(A).
Key Issues
Whether the CIT(A) erred in not condoning the delay in filing the appeal, and if the appeal should be decided on merits.
Sections Cited
147, 144, 144B
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Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2018-19 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 19.06.2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s 144 of the Income-tax Act, 1961 (hereinafter “the Act”) dated 06.03.2023.
There is a delay of 341 days in filing the appeal by the assessee.
The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. We have considered the petition/affidavit of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned.
The assessee is a Temple and has not filed the return of income for the relevant assessment year. Based on the information available, the A.O found that the assessee had made huge cash deposits, time deposits, and received interest income, but has not filed return of income. Since no return of income was filed, the A.O reopened the assessment. The A.O thereafter completed the assessment u/s. 147 r..w.s 144 r.w.s 144B of the Act, making an addition of Rs.1,51,16,508/- on account of cash deposits, Rs. 20 Lakhs towards time deposits and Rs. 8,79,967/- towards interest income as the assessee failed to comply with the notices issued as well as the details called for. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A) with a delay of 358 days. However, the CIT(A) did not condone the delay and dismissed the appeal in limine.
The Learned Authorized Representative (Ld. A.R) submitted that the assessee is a temple, and the staff working there were not aware of the procedure followed under the Faceless Appeal Scheme. It was further submitted that they were unaware that the notices would be sent only to their registered e-mail address and, therefore, could not file the appeal in time before the Ld. CIT(A). The Ld. A.R also submitted that a huge addition had been made in the assessment order and that there was sufficient cause for the delay in filing the appeal. It was, therefore, prayed that the Ld. CIT(A) may be directed to condone the delay and decide the appeal on merits in the interest of justice.
The Learned Departmental Representative (Ld. D.R) relied on the orders of the lower authorities and requested that the appeal be dismissed.
We have heard the rival submissions and perused the materials available on record. We find that there was a delay of 358 days in filing the appeal before the Ld. CIT(A). The assessee had explained reasons for the delay in filling appeal, however the Ld. CIT(A) did not accept the explanation and dismissed the appeal in limine. We also note that the assessee had been negligent before the A.O as well as Ld. CIT(A). However, considering the overall facts and circumstances of the case and in the interests of justice, we are of the opinion that the Ld. CIT(A) ought to have condoned the delay and decided the appeal on merits. We, therefore, set aside the impugned order and remit the matter back to the file of the Ld. CIT(A) with a direction to condone the delay and decide the appeal afresh on merits, in accordance with law, after affording reasonable opportunity of being heard to the assessee.
This shall, however, subject to payment of costs of Rs.25,000/- (Twenty five thousand only). The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of two months from the date of receipt of this order and produce the receipt before the Ld. CIT(A). The assessee is also directed to comply to the notices issued by the Ld. CIT(A) and furnish all relevant details for fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 28th day of October, 2025 at Chennai.