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Facts
The assessee failed to file a return of income, leading to a notice under Section 142(1). A late return was subsequently filed, declaring income at 8% of gross receipts under Section 44AD. The Assessing Officer made an addition of Rs. 28,03,683 under Section 69C, which was confirmed by the CIT(A). The assessee's appeal to the tribunal was filed with a delay of 349 days, attributed to non-service of the appeal order, the Authorized Representative's failure to inform, and the assessee's serious illness.
Held
The tribunal condoned the 349-day delay in filing the appeal, finding sufficient cause. The tribunal allowed the assessee's appeal, effectively overturning the addition made under Section 69C and accepting the income declared under Section 44AD.
Key Issues
Condonation of delay in filing appeal; Whether an addition under Section 69C is justified when the assessee has declared income under Section 44AD.
Sections Cited
69C, 44AD, 142(1)
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appeal order was never served upon him. It is stated that the user ID and password to get access of the e-filing portal was with the Authorised representative and said A.R. did not inform the assessee about the passing of the appellate order. It was also submitted that during that period, due to his serious illness, he was under treatment in Vellore and could not check up the tax matter with the A.R. It was in this backdrop that the appeal could not be filed within the stipulated period. It is prayed that the delay in filing the appeal be condoned. Ld Sr DR did not seriously oppose the condition petition. Therefore, I am of the opinion that the assessee was prevented by sufficient cause in not filing the appeal within time. Accordingly, I condone the delay of 349 days and admit the appeal for adjudication.
The only issue raised in the grounds of appeal is against the action of the ld CIT(A) in confirming the addition of Rs.28,03,683/- as made by the Assessing Officer u/s.69C of the Act without considering the provisions of section 44AD under which the assessee has declared 8% net profit of the said amount to tax.
The brief facts of the case are that the assessee had not filed the return of income during the year. Accordingly, notice u/s.142(1) dated 9.3.2018 was issued to the assessee which was duly served upon the assessee requiring the assessee to file the return of income within 30 days. However, no such return was filed. Thereafter, the assessee filed the return of income on 10.12.2019 offering income @ 8% of the gross receipts of P a g e 2 | 4
In the result, appeal of the assessee is allowed.
Order dictated and pronounced in the open court on /09/2025.
(RAJESH KUMAR) ACCOUNTANT MEMBER Kolkata : Dated /9/2025 B.k.Parida, , Sr. PS (OS) Copy of the Order forwarded to : 1. The Appellant : Anupam Saha, Habra 1, Vilalge- Sadpur, PO: Maslandapur, Barasat, 24, Pgs North, West Bengal 2. The Respondent: Income Tax Officer-50(2), Kolkata 3. The ld CIT(A), NFAC, Delhi 4. Pr.CIT- Kolkata 5. DR, ITAT, Kolkata 6. Guard file. //True Copy// By order