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Facts
The Assessing Officer (AO) passed an assessment order disallowing deduction claimed under Section 80P(2)(a)(i) of the Income Tax Act for Assessment Year 2022-23. The assessee appealed to the CIT(A), but the appeal was dismissed due to a delay of 155 days in filing, which was not condoned.
Held
The Tribunal found that the delay in filing the appeal before the CIT(A) was a sufficient cause. Consequently, the Tribunal directed the CIT(A) to condone the delay and hear the appeal on its merits, subject to the assessee depositing Rs. 5,000/- towards costs.
Key Issues
Whether the delay in filing the appeal before the CIT(A) was a sufficient cause, and if so, whether the appeal should be heard on merits.
Sections Cited
144, 144B, 80P(2)(a)(i)
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Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI
Before: SHRI MANU KUMAR GIRI & SHRI AMITABH SHUKLA
आदेश / O R D E R
PER MANU KUMAR GIRI, JM:
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 16.05.2025 for Assessment Year 2022-23.
Brief facts of the case are as under:
1. The AO passed assessment u/s.144 r.w.s. 144B of the Income tax Act, 1961 disallowing deduction claimed u/s. 80P(2)(a)(i) of the Act as assessee has not filed the evidence to prove that its business activity i.e; (AY 2022-23) Trichy District Medical Dept. ECS Ltd. YT66 facilitating financial accommodation to its members only. On appeal to ld. CIT(A), the delay of 155 days in filing appeal was not condoned.
Before us, the ld. Counsel for assessee submitted that the ld. CIT(A) has not properly considered the reasons given. 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.DR, however, keeping in mind the reasons given, we are of the view that the delay in filing appeal before the ld.CIT(A) is sufficient cause. Hence, we direct the ld.CIT(A) to condone the delay in filing appeal and hear the appeal on merits. Needless to say, that the ld.CIT(A) will follow the principle of natural justice and grant opportunity of hearing to the assessee. Accordingly, the impugned order is set aside and the appeal is restored back to the file of the Ld. CIT(A) for hearing on merits subject to cost of Rs.5,000/- (Rupees Five 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 Ld.CIT(A) whose shall proceed for hearing the appeal 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 Ld.CIT(A) shall be at liberty to proceed with the appeal proceedings on merits as per law.
(AY 2022-23) Trichy District Medical Dept. ECS Ltd. YT66 5. In the result, appeal filed by the assessee is allowed for statistical purpose.