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Facts
The assessee's appeal was dismissed by the Ld. CIT(A) due to a delay of 104 days, attributed to the Covid period. The assessee was found to be non-cooperative during the assessment proceedings, leading to the disallowance of construction expenses.
Held
The Tribunal condoned the delay, stating that the assessee has sufficient cause. For the interest of natural justice, the appeal is restored to the Assessing Officer for fresh adjudication, subject to the assessee paying a cost of Rs. 50,000/- to DTPA.
Key Issues
Whether the delay in filing the appeal is justifiable, and if the disallowance of expenses due to non-cooperation warrants a restoration for fresh adjudication.
Sections Cited
250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH, KOLKATA
Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA
Present for: Appellant by : Shri Sunil Surana, AR Respondent by : Shri Sandip Sengupta, Addl. CIT, Sr. DR Date of Hearing : 10.03.2025 Date of Pronouncement : 10.03.2025 O R D E R Per Bench : This is an appeal filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “the Ld. CIT(A)”] vide order no. ITBA/NFAC/S/250/2024-25/1069528747(1) dated 08.10.2024 passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2018-19.
Shri Sunil Surana, AR appeared on behalf of the assessee and Shri Sandip Sengupta, Addl. CIT, Sr. DR appeared on behalf of the revenue.
The Ld. CIT(A) has dismissed the appeal of the assessee in limine by holding that there is a delay of 104 days. Admittedly, this delay is on Amrita Greenview Housing P. Ltd., AY: 2018-19 account of the Covid period. Consequently, we are of the view that assessee has sufficient cause and the delay stands condoned. A perusal of the assessment order clearly shows that the assessee has been non-cooperative before the Assessing Officer. Consequent to the non-cooperation of the assessee before the Assessing Officer, this has led the Assessing Officer disallowing the entire construction expenses. Admittedly, this is not permissible. Therefore, in the interests of natural justice, we are of the view that the assessee should be granted one more opportunity. This being so, the issue in this appeal is restored to the file of the Assessing Officer for adjudication afresh subject to the assessee paying a cost of Rs.50,000/- to the Direct Tax Professional Association (DTPA) within sixty days from the date of this order and receipt of the same would be produced before the Ld. Assessing Officer at the first hearing. Should the assessee not pay the abovementioned cost of Rs. 50,000/- within the prescribed period of sixty days from the date of this order, the order of the Ld. CIT(A) shall stand confirmed.
In the result, the appeal of the assessee is allowed for statistical purpose subject to above directions.
Order dictated and pronounced in the open court.