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Facts
The assessee, an individual proprietor, filed a belated Return of Income (RoI) for AY 2017-18, which the AO did not accept. Subsequently, the assessment was completed ex-parte under Section 144, then Section 147 read with Sections 144 and 144B, and an order for enhanced interest under Section 234A was issued. The CIT(A) dismissed the assessee's appeal due to an 825-day delay, despite the assessee citing severe Corona infection and related treatment through a medical certificate.
Held
The Tribunal found the delay in filing the appeal before the Ld.CIT(A) to be a sufficient cause, considering the medical reasons provided. It directed the Ld.CIT(A) to condone the delay, set aside the impugned order, and restore the appeal for a hearing on merits, conditioned upon the assessee paying Rs.5,000 as costs to the Tamil Nadu State Legal Services Authority.
Key Issues
Whether the delay of 825 days in filing the appeal before the CIT(A) should be condoned based on the assessee's medical grounds, allowing the appeal to be heard on its merits.
Sections Cited
142, 144, 144B, 147, 154, 234A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI MANU KUMAR GIRI & SHRI JAGADISH
आदेश / O R D E R
PER MANU KUMAR GIRI, JM:
This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeal)/NFAC, (in short ‘the Ld.CIT(A)’), Delhi, dated 13.03.2025 for the Assessment Year (in short ‘AY’) 2017-18.
The brief facts of the case are that the assessee is an Individual and is the proprietor of business by named Sri Bannari Amman Industry in (AY 2017-18) N.S. Sivaraj which he doing Purchase of Coconut shells and converting it to powder and sell the Coconut shell powder. For the relevant Asst. year under consideration the assessee did file his Return of income (RoI) and was fled belatedly. The Assessing Officer (AO) did not accept the Return for the reason being it was fled very late and hence, it was considered as not fled at all for the relevant assessment year. Along with the RoI the assessee had fled the Profit & Loss account and the Balance Sheet also. While the Department had information regarding the assessee’s Bank account and the transactions in the Bank account, however, could not relate the same with the RoI for the reason being the RoI was considered as not filed at all. Hence, in order to know the sources of the Bank deposits and also to know about the assessee’s business nature and transactions, couple of notices under section 142 was served which was not responded by the assessee. As there was no response by the assessee for the notices, the Department chose to complete the assessment u/s.144. For this also, there was no response from the assessee and hence, the assessment was completed u/s.147 r.w.s. 144 r.w.s. 144B on 22.09.2021. Consequent to the order, there is an order u/s.154 r.w.s. 147 by the Department for the enhancement of levy of interest u/s.234A dated 29.11.2023. However, the ld. CIT(A) dismissed the appeal on the ground of rejection of petition for condonation of delay. There was ‘825’ days delay in filing the appeal. In this regard, assessee (AY 2017-18) N.S. Sivaraj has filed Medical Certificate stating that he had infected sever Corona and he was advised by the Doctor to follow up treatment till October, 2021.
Aggrieved, assessee is in appeal before us.
Before the ld. Counsel for assessee submitted that the ld. CIT(A) has not properly considered the reasons given in the Form 35. 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, Ms. Gauthami Manivasagam, JCIT, however, keeping in mind the reasons given, we are of the view that the delay in filing appeal before the ld.CIT(A) is a 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 (AY 2017-18) N.S. Sivaraj 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.
In the result, appeal filed by the assessee is allowed for statistical purpose.
Order pronounced on the 21st day of July, 2025, in Chennai.