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Facts
The assessee filed appeals for AY 2017-18 assailing the confirmation of quantum addition and penalty. The appeals were delayed, which was attributed to notices being sent via email operated by the accountant. The CIT(A) had dismissed the appeals for want of condonation of delay.
Held
The Tribunal condoned the delay, noting that the assessment was framed on a best judgment basis. The quantum appeal was set aside to the AO for de novo assessment, and the penalty was also restored for fresh adjudication.
Key Issues
Whether the delay in filing the appeal and the penalty appeal can be condoned, and if the assessment on best judgment basis requires de novo assessment.
Sections Cited
271AAC, 147, 148, 143(3)
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Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH
Before: HON’BLE SHRI RAJPAL YADAV & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. By way of these appeals for Assessment Year (AY) 2017-18, the assessee assails confirmation of quantum addition and consequential levy of penalty u/s 271AAC. The registry has noted delay of 283 days in quantum appeal 130 days in penalty appeal ITA No.206/Chandi/2025. The condonation of delay has been sought by Ld. AR on the strength of condonation petition which is accompanied by an affidavit of the accountant of the assessee wherein it has been stated that the notices have been issued on email which was being operated by the accountant. The Ld. AR also stated that Ld. CIT(A) has dismissed the appeals for want of condonation of delay which happened due to same very reasons. In this background, Ld. AR sought adjudication of appeals on merits. The same has been opposed by Ld. Sr. DR.
Keeping in mind the guiding principles laid down by Hon’ble Supreme Court in the case of N. Balakrishnan vs. M. Krishnamurthy (7 SCC 123) with respect to delay, we condone the delay before Tribunal as well as before Ld. CIT(A). Since the assessment has been framed on best judgment basis, the quantum appeal is set aside to the file of Ld. AO for de novo assessment with a direction to the assessee to plead and prove its case forthwith. The levy of penalty is consequential in nature and therefore, the same is also restored back to Ld. AO for fresh adjudication considering the quantum assessment.
Both the appeals stand allowed for statistical purposes. Order pronounced on 23-07-2025 Sd/- Sd/- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 23-07-2025.