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Facts
Kerala State Drugs and Pharmaceuticals Ltd. filed a nil income return for AY 2012-13. After an initial assessment under Section 143(3), a reassessment notice under Section 148 was issued, and the assessment was completed under Section 115JB, determining a book profit. The assessee filed an appeal before the CIT(A) with a 4-day delay, which the CIT(A) refused to condone.
Held
The Tribunal found no reason to disbelieve the assessee's explanation for the delay and held that the CIT(A) should have condoned it. The matter is remanded back to the CIT(A) with a direction to condone the 4-day delay and decide the appeal on merits after providing an opportunity of being heard.
Key Issues
Whether the CIT(A) was justified in refusing to condone a 4-day delay in filing an appeal and if there was sufficient cause for the delay.
Sections Cited
143(3), 147, 148, 115JB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI KESHAV DUBEY, JM
O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)], dated 27.08.2024 for Assessment Year (AY) 2012-13.
Brief facts of the case are that the appellant is a company incorporated under the provisions of the Companies Act. It is an undertaking of the Government of Kerala, engaged in the business of drugs and pharmaceuticals. The return of income for AY 2012-13 was filed on 29.09.2012 declaring nil income. Against the said Kerala State Drugs and Pharmaceuticals Ltd. return of income, the assessment was completed by the ACIT, Alappuzha (hereinafter called "the AO") vide order dated 29.12.2014 passed u/s. 143(3) of the Income Tax Act, 1961 (the Act) accepting the returned income. Subsequently the AO formed an opinion that income escaped assessment to tax, as the appellant had failed to disclose income of Rs. 18,75,111/- u/s. 115JB of the Act. Accordingly, a notice u/s. 148 of the Act was issued on 29.03.2019 after obtaining necessary approvals from the Chief Commissioner of Income Tax (CCIT). In response to the notice u/s. 148 of the Act the appellant filed return of income declaring Nil income. Against the said return of income, the assessment was completed by the AO u/s. 115JB of the Act at a book profit of Rs. 98,40,521/-.
Being aggrieved, an appeal was filed before the CIT(A) with a delay of 4 days. The CIT(A) refused to condone the delay of 4 days by holding that it is an inordinate delay and the appellant had failed to make out sufficient cause for the delay.
Being aggrieved, the appellant is in appeal before us in the present appeal.
We have heard the rival contentions of both the parties and perused the material available on record. The solitary issue that arises in the present appeal is whether the CIT(A) was justified in refusing to condone the delay of 4 days in filing the appeal. The appellant filed a petition seeking condonation of delay stating that Kerala State Drugs and Pharmaceuticals Ltd. the delay has occurred as the authorised representative of the appellant company was pre-occupied in time barring assessments and when the appeal was prepared and ready for filing, the Managing Director of the appellant company was out of station and it is further submitted that just before the day of filing the appeal it was preceded by public holidays on account of Christmas. Thus it was submitted before the CIT(A) that the delay in filing the appeal occurred on account of reasons which are beyond the control of the assessee.
In our considered opinion, there is nothing on record to disbelieve the averments made in the petition seeking condonation of delay. The CIT(A) ought to have condoned the delay and admitted the appeal for adjudication on merits. Therefore, we remand the matter back to the file of the CIT(A) with a direction of condone the delay of 4 days and decide the issues in the appeal on merits after affording opportunity of being heard to the appellant.
In the result, the appeal stands partly allowed.
Order pronounced in the open court on 19th February, 2025.