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Facts
The Assessing Officer passed an ex-parte order under sections 147, 144, and 144B of the Income-tax Act, 1961, assessing income at Rs. 1,38,12,261/- by treating cash deposits as unexplained credits under section 69A. The CIT(A) dismissed the assessee's appeal in limine due to a delay of 347 days.
Held
The Tribunal condoned the delay, acknowledging the reasons provided by the assessee, and restored the appeal to the Assessing Officer for a fresh hearing on merits, subject to a cost of Rs. 10,000/-. The assessee was directed to provide all evidence and documents.
Key Issues
Whether the delay in filing the appeal before the CIT(A) should be condoned and whether the assessee should be granted an opportunity to present its case on merits before the Assessing Officer.
Sections Cited
147, 144, 144B, 69A, 35
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: HON’BLE SHRI MANU KUMAR GIRI & SHRI HON’BLE S.R. RAGHUNATHA
आदेश / O R D E R
PER MANU KUMAR GIRI (Judicial Member):
The captioned appeal filed by the assessee is directed against order of the Ld. Commissioner of Income Tax (Appeal)/NFAC, Delhi [‘CIT(A)’ in short] dated 02.07.2025 for Assessment Year 2018-19. passed an ex-parte order u/s. 147, 144 r.w.s 144B of the Income-tax Act, 1961 (hereinafter “the Act”) dated 12.03.2023, assessing the total income at Rs.1,38,12,261/- by treating the cash deposits as unexplained cash credits u/s. 69A of the Act. The Ld.CIT(A) dismissed the appeal in limine as the appeal was filed delayed by 347 days.
Aggrieved, assessee is in appeal before us.
Before us, the ld. Counsel for assessee submitted that the assessee has given reasons for the delay in Form 35 but the same was not appreciated by the ld. CIT(A). Therefore, he pleaded that after condoning the delay, the assessee may be given chance to prosecute the case before the A.O. The Ld. DR relied upon the order of the Ld. CIT(A) and pleaded for the dismissal of the appeal.
Though we some extent concur with the submissions of Ld. AR and find that the reasons given by the assessee can’t be ruled out.
Hence, we condone the delay and also keeping in mind the natural justice, we are of the view that the assessee may be granted opportunity to prosecute the case before the A.O. Accordingly, the impugned order is set aside and the appeal is restored back to the file C2506 Pakkam Palayam Primary Agricultural Co-op. Credit Society Ltd. :- 3 -: of the A.O for hearing on merits subject to cost of Rs.10,000/- (Rupees Ten Thousand) which shall be deposited by the assessee within ‘30’ days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same will be furnished by the assessee before the A.O whose shall proceed for hearing the denovo assessment on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence and documents, if any, forthwith without any fail, failing which AO shall be at liberty to proceed with the assessment proceedings on merits as per law. Legal issues are open. The ld. AR of the asssessee also assured us that the assessee will prosecute the case diligently before the authorities.
In the result, appeal filed by the assessee is allowed for statistical purpose.
Order pronounced on 26th day of September, 2025 at Chennai.