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Facts
The assessee filed their return of income, which was selected for scrutiny due to cash deposits during demonetization. The Assessing Officer treated ₹.14,60,000 as unexplained cash deposits and added it to the returned income. The CIT(A) dismissed the appeal in limine due to a delay of 841 days in filing the appeal.
Held
The Tribunal remanded the matter back to the CIT(A) to provide an opportunity for the assessee to file a condonation petition with an affidavit for the delay. The CIT(A) is to decide the matter afresh after considering the petition and condoning the delay.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal in limine without condoning the significant delay in filing the appeal, and if an opportunity should be granted to the assessee to explain the delay.
Sections Cited
69A
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Before: Shri S.S. Viswanethra Ravi&
आयकर अपीलीय अिधकरण, ’सी’ �ायपीठ, चे�ई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI �ी एस.एस. िव�ने� रिव, �ाियक सद� एवं �ी अिमताभ शु�ा, लेखा सद� के सम� Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Amitabh Shukla, Accountant Member आयकर अपील सं./I.T.A. No.2939/Chny/2024 िनधा�रण वष�/Assessment Year: 2017-18 Satya Srinivasa Prasad Baggu, Vs. The Income Tax Officer, No. 30, 9th Street, Sakthi Nagar, Non Corporate Ward 17(7), Shashini Nivas, Kolathur, Chennai. Chennai 600 099. [PAN:AJEPB0755C] (अपीलाथ�/Appellant) (��थ�/Respondent) अपीलाथ� की ओर से / Appellant by : Shri Sathya Harsha, C.A. ��थ� की ओर से/Respondent by : Ms. R. Anita, Addl. CIT सुनवाई की तारीख/ Date of hearing : 22.01.2025 घोषणा की तारीख /Date of Pronouncement : 23.01.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:
This appeal filed by the assessee is directed against the order dated 22.07.2024 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2017-18.
The assessee raised 4 grounds in his appeal and mainly challenged the order of the ld. CIT(A) in dismissing the appeal in limine without condoning delay in filing the appeal.
Brief facts of the case are that the assessee filed his original return of income on 31.03.2018 declaring total income of ₹.5,11,000/-. The case was selected for limited scrutiny by CASS for cash deposit during demonetization period. The Assessing Officer noted that the assessee made cash deposit of ₹.14,60,000/-. Against statutory notices, the assessee has submitted that the said money (cash in hand) belonging to him as past year savings. However, the assessee has not produced any material evidence in support of his claim. Accordingly, the Assessing Officer treated the same as unexplained cash deposits under section 69A of the Income Tax Act, 1961 [“Act” in short] in the hands of the assessee and added to the returned income of the assessee. On appeal, the ld. CIT(A) dismissed the appeal filed by the assessee in limine since assessee could not file any petition for condonation of delay in support of an affidavit by furnishing reasonable cause for the delay of 841 days in filing the appeal.
The ld. AR Shri Sathya Harsha, C.A. submits that the assessee, being a normal salaried individual without having much knowledge about the income tax, law, provisions and the consequences and without having an habit or practice of checking the email, he missed out to get access to the hearing notices issued by the ld. CIT(A). He further submits that non response to the notices is purely due to non- checking of email and it was not intentional or voluntary. Thus, the ld. AR prayed that one more opportunity may be afforded to the assessee for filing condonation petition before the ld. CIT(A) and to pursue his case.
The ld. DR Ms. R. Anita, Addl. CIT opposed the same and drew our attention to para 3.3 of the impugned order and argues that the ld. CIT(A) has given ample of opportunities to the assessee, but, it was not availed.
Considering the facts and circumstances of the case and submissions of the ld. AR and the ld. DR, in the interest of justice, we deem it proper to remand the matter to the file of the ld. CIT(A) to afford an opportunity to the assessee for filing condonation petition in support of an affidavit for the delay of 841 days. The ld. CIT(A) shall consider the same and condone the delay. The ld. CIT(A) shall decide the matter afresh in accordance with law. Thus, the grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 23rd January, 2025 at Chennai.