SAHEB INDUSTRIES,ANKLESHWAR vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 2(1)(1), VADODARA

The brief facts of the case are that the assessee is engaged in the business of manufacturing of pharmaceuticals, medicinal chemicals and botanicals products. During the year under consideration, the assessee sold three industrial plots and claimed exemption amounting to Rs.4,10,00,000/- under Section 54G of the Act. On examination of facts of assessee’s case, the Assessing Officer reworked the capital gains on such sale of plots and also denied part of the exemption claimed under Section 54G of the Act and thereby assessed the income of the assessee at Rs. 5,93,02,872/-. During the course of assessment, the Assessing Officer observed that there was consistent non-compliance on part of the assessee and accordingly, proceedings under Section 272A(1)(d) of the Act for non-compliance of notices issued under Section 142(1) of the Act, were also initiated against the assessee.

In appeal, Ld. CIT(A) observed that there was a delay of 45 days in filing of the appeal by the assessee, which Ld. CIT(A) refused to condone. Accordingly, Ld. CIT(A) dismissed the appeal of the assessee.

The assessee is in appeal before us against the aforesaid order passed by Ld. CIT(A), dismissing the appeal of the assessee.

Before us, the Counsel for the assessee submitted that Ld. CIT(A) had violated the principles of natural justice while dismissing the appeal of the assessee on account of minor delay of 45 days in filing of appeal before him. This is especially in the light of the fact that substantial additions were made Saheb Industries vs. DCIT Asst.Year –2020-21 - 3– in the assessment order, which was having tax effect for approximately 1.5 crores on the assessee and therefore, Ld. CIT(A) ought to have decided the appeal of the assessee on merits, instead of summarily dismissing the same.

On going through the facts of the instant case, we observe that the assesee has all through maintained an evasive and non-compliant approach in response to various notices issued by the Tax Authorities. However, looking into the quantum of additions made, in the interest of justice, the matter is hereby restored to the file of Ld. CIT(A) for de-novo consideration. However, in view of the consistent non-cooperative approach of the assessee, a cost of Rs. 5,000/- is being imposed on the assessee for the purpose of setting-aside the matter to the file of Ld. CIT(A) for de-novo consideration and the same is directed to be deposited to the Prime Minister’s Relief Fund.

In the result, the appeal of the assessee is allowed for statistical purposes. This Order is pronounced in the Open Court on 25/02/2025