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Facts
The appellant, a wholesale fruit merchant, filed a return for AY 2017-18. The AO completed assessment making a disallowance of Rs. 31,86,000/- under Section 40A(3). The CIT(A) confirmed the AO's action but dismissed the appeal due to a 172-day delay without considering the assessee's explanation for condonation of delay.
Held
The Tribunal held that the CIT(A)'s order was ambiguous for not providing reasons for rejecting the delay condonation request. Therefore, the matter was remanded to the CIT(A) for a fresh decision on merits after providing an opportunity of hearing to the assessee.
Key Issues
Whether the CIT(A) was justified in dismissing an appeal due to delay without properly considering the application for condonation of delay.
Sections Cited
143(3), 40A(3)
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Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM
O R D E R This appeal filed by the assessee is directed against the order of the Addl./Jt. Commissioner of Income Tax (Appeals), Uadipur [CIT(A)] dated 16.01.2025 for Assessment Year (AY) 2017-18.
Brief facts of the case are that the appellant is a wholesale fruit merchant. The appellant filed return of income for AY 2017-18 on 19.01.2018 declaring total income of Rs. 5,81,430/-. Against the said return of income, the assessment was completed by the AO vide order dated 27.12.2019 passed u/s. 143(3) of the Income Tax Act, 1961 (the Act) at Rs. 37,67,430/-. While doing so, the AO made disallowance of Rs. 31,86,000/- u/s. 40A(3) of the Act.
Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO.
Cheriammal Mumtazeer 4. I heard the rival contentions of both the parties and perused the material available on record. At the outset, I find that the appellant filed appeal before the learned CIT(A) with a delay of 172 days. The appellant filed a petition seeking condonation of delay explaining the reasons for the delay in filing the appeal before the CIT(A). The learned CIT(A), dismissed the appeal without considering the explanation of the appellant.
Thus, the order passed by the CIT(A) suffers from ambiguity and the CIT(A) was not justified in refusing to condone the delay without giving reasons as to how the explanation tendered by the appellant does not constitute sufficient cause for delay.
In the circumstances, I am of the considered opinion that the matter requires remand to the file of the CIT(A) for de novo adjudication in accordance with law after affording opportunity of hearing to the assessee.
In the result, the appeal filed by the assessee stands allowed.
Order pronounced in the open court on 8th April, 2025.