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Facts
The assessee filed appeals against the order of the Ld. CIT(A) who dismissed the quantum appeal due to a delay of 138 days in filing. The assessee cited Vis Major (flood and pandemic) and unawareness of the impugned order as reasons for the delay. The Ld. CIT(A) also dismissed appeals against penalty orders u/s 270B and 271(1)(c).
Held
The Tribunal held that there was a reasonable cause for the delay in filing the appeal. The penalty imposed u/s 270B was deleted due to sufficient cause for the delayed audit report. The penalty order u/s 271(1)(c) was set aside to the Ld. CIT(A) for decision after the quantum appeal is disposed of.
Key Issues
Whether the delay in filing the appeal and audit report was condonable, and whether the penalty imposed under sections 270B and 271(1)(c) was justified.
Sections Cited
147, 144B, 270B, 271(1)(c), 270A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI MANU KUMAR GIRI, JM
O R D E R
PER MANU KUMAR GIRI, JM:
The captioned appeals filed by the assessee are directed against the orders of the Ld. Commissioner of Income Tax(Appeals), National Faceless Appeal Centre (NFAC), Delhi, [hereinafter the “Ld.CIT(A)”] all dated 15.07.2025for the Assessment Year 2019-20 (hereinafter the "AY").
Assessee challenged the assessment order passed u/s 147 r.w.s. 144B of the Income-tax Act, 1961 (hereinafter "the Act') before the ld.CIT(A). However, the ld.CIT(A) has dismissed the quantum to 694/Coch/2025 Paravur Govt. Servants Co-op. Bank Ltd. appeal of the assessee in limine as there was delay of 138 days in filing the appeal. Simultaneously, the ld.CIT(A) dismissed the appeals of the assessee against the orders passed u/s. 270B and 271(1)(c) of the Act.
We find from the explanation given by the assessee as narrated in the ld.CIT(A) order that the delay in filing audit report was on account of the act of Vis-Majori.e; flood and pandemic, which was beyond the control of the assessee. The ld.AR for the Assessee, further stated that assessee was not aware of the impugned order which was issued through ITBA portal. The assessee became aware of the order only upon receipt of a notice u/s.270A of the Act.
Per contra, the ld. DR relied upon the orders of the ld.CIT(A).
We have heard the rival submissions and perused the record of the appeal files. We are of the considered view that there was reasonable cause for filing the appeal belatedly. Hence, remand back appeal file to the ld.CIT(A) and direct the ld.CIT(A) to condone the delay of 138 days in filing the appeal and hear the appeal on merits. Further, we deleted the penalty imposed by the AO u/s.270B of the Act as there was sufficient cause for filing the delayed audit report. Act of Vis Major doesn’t benefit either. The penalty order passed u/s. 271(1)(c) is also set aside to the ld.CIT(A) who will decide the same after the disposal of the quantum appeal. Needless to say, theld.CIT(A) before adjudicating the quantum and penalty appeal, to 694/Coch/2025 Paravur Govt. Servants Co-op. Bank Ltd. will provide proper and adequate opportunity to the assessee to explain and argue the grounds raised in the appeals. Assessee is also directed to co-operate before the CIT(A).