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Facts
The assessee appealed against the order of the CIT(A) who dismissed their appeal for Assessment Year 2013-14. The dismissal was based on not condoning a delay of 1418 days and finding that the assessee had not paid the due tax on admitted income.
Held
The Tribunal condoned the delay of 1418 days due to the managing partner's severe illness. It directed the CIT(A) to verify the tax payment of Rs. 5,08,57,893/- which was claimed to be in excess of the tax payable (Rs. 4,65,49,181/-). If verified, the CIT(A) should admit the appeal and decide on merits.
Key Issues
Whether the delay in filing the appeal should be condoned due to medical reasons and whether the CIT(A) correctly dismissed the appeal without verifying the tax payment made by the assessee.
Sections Cited
249(4)(a), 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI AMITABH SHUKLA
आदेश / O R D E R
PER ABY T. VARKEY, JM:
This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)-18, (hereinafter referred to as “the Ld.CIT(A)”), Chennai, dated 31.01.2024 for the Assessment Year (hereinafter referred to as "AY”) 2013-14.
At the outset, the Ld.AR of the assessee brought to our notice that the Ld.CIT(A) has erroneously dismissed the appeal of the assessee by firstly, not condoning the delay of ‘1418’ days and secondly, by finding that the assessee didn’t pay the tax due on the income returned by it, which according to assessee is erroneous. For convenience, we re- produce the Ground Nos.2 & 3 raised by the assessee:
2. The CIT(A) erred in holding that the appeal is not admissible under sec.249(4)(a) of the Act.
The CIT(A) failed to appreciate that the assessee had remitted total tax of Rs.5,08,57,893/- on the admitted income and this was in excess, as against the tax payable of Rs.4,65,49,181/- and hence the dismissal of appeal on this score was unjustified and untenable in law.
3. From a perusal of the aforesaid grounds, it is noted that the assessee has asserted that it has remitted total tax of Rs.5,08,57,893/- on the admitted income as disclosed in the return of income (RoI) filed by it. And also submitted that this amount was in excess against the tax payable to the tune of Rs.4,65,49,181/- whereas the Ld.CIT(A) has erroneously found that the assessee has only made payment of Rs.1.30 Crs. and therefore, the Ld.CIT(A) erred in finding that the assessee was barred from filing the appeal under sub-section 249(4)(a) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act‘)
The aforesaid assertion of the assessee needs verification. Having said so, we note that the other ground on the basis of which the Ld.CIT(A) has refused to admit the appeal preferred by the assessee because there was a delay of ‘1418’ days in filing of appeal before him.
1. In this regard, the assessee has filed huge Paper Book containing the medical history of the Managing partner, Mr. Rasheed Khan who was suffering from various serious ailments which is discernable from the medical records placed before us and taking note of the aforesaid facts as well as the application for condonation of delay as well as the affidavits supporting the same, we are of the view that since the managing partner was unwell and hospitalized, the delay caused in filing of appeal before the Ld.CIT(A) can’t be held to be deliberate because it was beyond the control of the assessee firm. Therefore, we condone the delay of ‘1418’ days in filing of appeal before the Ld.CIT(A) and direct the Ld.CIT(A) to verify from the proof of payment of tax of Rs.5,08,57,893/- which according to the assessee was in excess as against the tax payable to the tune of Rs.4,65,49,181/-; and if the Ld.CIT(A) finds the assessee’s assertion regarding remitting of tax on the admitted income is correct, then, the Ld.CIT(A) to admit the appeal of the assessee and decide the grounds of appeal raised by the assessee in accordance with sub-section (6) of section 250 of the Act. The assessee is directed to file all the relevant documents called for by the Ld.CIT(A) and file written submissions and the Ld.CIT(A) to pass order in accordance to law after hearing the assessee.
Order pronounced on the 28th day of May, 2025, in Chennai.