Loading judgment…
Facts
The assessee, a partnership firm engaged in building construction, filed its return for AY 2018-19. An ex-parte assessment order was passed with additions. The assessee's appeal before the CIT(A) was dismissed due to a 86-day delay, citing no reasonable cause.
Held
The Tribunal condoned the 86-day delay in filing the appeal before the CIT(A), considering the period immediately after the Covid-19 Pandemic. The CIT(A) was directed to decide the appeal on merits after providing an opportunity of hearing to the assessee.
Key Issues
Whether the delay in filing the appeal before the CIT(A) was justifiable, and if the CIT(A) should be directed to decide the appeal on merits.
Sections Cited
144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH
Before: Smt. Annapurna Gupta & Shri T.R. Senthil Kumar
Assessment Year. 2018-19 Sapphire Infrastructure The ITO, 24, Shrimali Society, Ward-5(3)(1), Opp. Navrangpura Vs Ahmedabad Police Station, Ahmedabad Gujarat-380009 PAN: ABWFS5709B (Respondent) (Appellant) Assessee Represented: Shri S. N. Divatia, A.R. & Shri Samir Vora, A.R. Revenue Represented: Shri A.P. Singh, CIT-DR Date of hearing : 06-03-2025 Date of pronouncement : 07-03-2025 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:-
This appeal is filed by the Assessee as against the appellate order dated 09.10.2024 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “CIT(A)”), arising out of the assessment order passed under section 144 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2018-19.
A.Y. 2018-19 Page No 2 Sapphire Infrastructure. vs. ITO
At the outset, Ld. Counsel submitted that the assessee is Partnership Firm was engaged in the business of Building Construction and presently the Firm is closed. For the Asst. Year 2018-19, assessee filed its Return of Income on 25-10-2018 declaring total income at Rs. 14,27,950/-. The return was selected for scrutiny assessment and notices were issued, since the firm was closed from business activities, exparte assessment order was passed making following additions: (i) Stamp duty expenses Rs. 31,48,300/- (ii) Advertisement expenses Rs. 6,300/- (iii) Interest expenses Rs. 20,52,155/- (iv) Unsecured loans Rs.7,69,22,500/- Thus Ld. A.O. determined the total income at Rs. 8,35,57,205/- and demanded tax thereon.
Aggrieved against the exparte order dated 26-04-2021, assessee filed an appeal belatedly with a delay of 86 days. Ld. CIT(A) held that no reasonable cause adduced by the assessee for the delay thereby dismissed the appeal as not maintainable.
Aggrieved against the appellate order, assessee is in appeal before us and filed Paper Book containing various details namely Tax Audit Report, Ledger Account of Partners and Unsecured loan details with bank statements, Advertisement expenses and Stamp Duty charges. Thus Ld. Counsel pleaded to set aside the matter back to the Ld. CIT(A) to decide the appeal on merits of the case on the ground that the condonation period mainly falls immediate after Covid-19 Pandemic situation.
A.Y. 2018-19 Page No 3 Sapphire Infrastructure. vs. ITO
Ld. CIT-DR appearing for the Revenue has no serious objection in setting aside the matter back to the file of Ld. CIT(A) to decide the case on merits.
Recording the above statements of rival parties, the delay of 86 days in filing the appeal before Ld. CIT(A), which falls immediate after Covid-19 Pandemic period is hereby condoned. However in the interest of Principle of Natural Justice, the Ld. CIT(A) is directed to pass order on merits of the case by giving proper opportunity of hearing to the assessee. Needless to say, the assessee should cooperate by filing all relevant materials/evidences before the Ld. CIT(A) to pass order on merits of the case.
In the result, the appeal filed by the Assessee is allowed for statistical purpose.