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Facts
The assessee, a Cooperative Credit Society, did not file its ITR for AY 2017-18, and the AO completed an ex-parte assessment under Section 144, taxing a cash deposit of Rs. 15,41,310/- made during demonetization, due to non-compliance with statutory notices. The CIT(A) dismissed the appeal in limine. The assessee then approached the Tribunal with a delay of 286 days, which was sought to be condoned based on a 'reasonable cause' affidavit.
Held
The Tribunal condoned the delay of 286 days in filing the appeal after finding a 'reasonable cause' presented by the assessee. It remitted the issues on merit back to the Jurisdictional Assessing Officer for de novo adjudication, setting aside the CIT(A)'s finding. The assessee was directed to ensure proper communication and vigilance for future proceedings.
Key Issues
Whether the delay in filing the appeal should be condoned and if the ex-parte assessment by the AO should be remitted back for de novo adjudication on merits.
Sections Cited
250, 144, 139(1), 142(1)
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Income Tax Appellate Tribunal, PUNE BENCHES “SMC”, PUNE
Before: DR.MANISH BORAD & MS. ASTHA CHANDRA
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee pertaining to Assessment Year 2017-18 is directed against the order dated 29.12.2023 framed by National Faceless Appeal Centre, Delhi passed u/s.250 of the Income Tax Act, 1961 ( in short ‘the Act’) which inturn is arising out of the Assessment Order dated 21.12.2019 passed u/s.144 of the Act.
At the outset, we find that the appeal is barred by limitation by 286 days in presenting the appeal before the Tribunal. The chairman of the society filed an affidavit stating that one Mr. Subhash Krushna Jadhav who was looking after the tax matter left the job on 11.09.2024 and failed to hand over the tax matters to his successor. Only on 09.10.2024 the assessee society came to know of passing the orders against the assessee. After going through the averments made in the affidavit, we are satisfied that there was ‘reasonable cause’ for the assessee society in not presenting the appeal before the Tribunal within the time. We therefore condone the delay of 286 days in filing this appeal and proceed for adjudication of the appeal in light of judgment of Hon’ble Supreme Court in the case of Collector Land Acquisition Vs. MST Katiji (1987) 167 ITR 471 SC and the decision of Hon’ble Madras High Court in the case of CIT vs. Sanmac Motor Finance Ltd. reported in 322 ITR 309.
Facts of the case are that the assessee is a Cooperative Credit Society engaged in providing credit facilities to its members. For the year under consideration, the assessee has not filed the return of income u/s.139(1) of the Act. Based on the information available in AIMS Module, ld. Assessing Officer observed that the assessee society made cash deposit during the demonetization period to the extent of Rs.15,41,310/-. In the absence of any compliance from the side of the assessee to the statutory notices u/s.142(1) of the Act, the Assessing Officer completed the assessment u/s.144 of the Act by bringing to tax the amount of cash deposit so made.
Aggrieved assessee preferred appeal before the ld.CIT(A) who vide impugned order dismissed the appeal in limine. Now the assessee has approached the Tribunal.
During the course of present hearing, ld. Counsel for the assessee submitted that due to the reasons beyond control of the assessee, its case was not represented before the lower authorities which led to passing of the orders exparte against the assessee. Given an opportunity, the assessee is now in a position to represent its case effectively before the authorities by producing cogent evidences. Therefore, a prayer is made to remit the issue on merit to the file of Jurisdictional Assessing Officer. Ld. Departmental Representative did not object for remission of the issues to the file of JAO.
Having heard both the sides and perusing the record placed before us and the submissions made by the ld. counsel for the assessee during the course of present hearing, we are of the considered opinion that the end of justice would meet adequately if the issues on merit are remitted back to the file of Jurisdictional Assessing Officer for denovo adjudication. Assessee is directed to provide proper email id and phone number to the department for receiving notices through ITBA portal. Assessee is also directed to remain vigilant and not to seek unnecessary adjournment unless otherwise required, failing which the ld. JAO is at liberty to proceed in accordance with law. Finding of ld.CIT(A) is set aside and effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 20th day of March, 2025.