MALIREDDI SRINATH,HYDERABAD vs. ITO, WARD-2(1), HDYERABAD, HYDERABAD

Facts

The assessee, Malireddy Srinath, deposited Rs. 61,21,519/- cash in a bank account during FY 2014-15 but did not file a return for AY 2015-16. Assessment proceedings were initiated under Sections 147/148, and the Assessing Officer completed the assessment under Sections 144 read with 144B, treating the cash deposits as unexplained money under Section 69A, assessing a total income of Rs. 67,56,572/-. The assessee filed an appeal before the CIT(A) against this order with a delay of over 18 months, claiming non-receipt of the assessment order and awareness only after recovery communication.

Held

The Tribunal upheld the CIT(A)'s decision to dismiss the appeal in limine, agreeing that the assessee failed to show sufficient cause for the inordinate delay of over 18 months. It found that the assessment order was duly served electronically, and the assessee was negligent in tracking proceedings and failed to provide a proper explanation for the delay. Citing Supreme Court precedents, the Tribunal reiterated that a liberal approach to condonation of delay does not extend to cases of gross negligence or inaction.

Key Issues

Whether the CIT(A) was justified in dismissing the appeal in limine due to an inordinate delay of over 18 months in filing, and whether the assessee had shown "sufficient cause" for condonation of delay as per the Income Tax Act and Limitation Act principles.