Loading judgment…
Facts
St. Ann's Public School, an educational trust, did not file a return of income for AY 2015-16. The AO, based on information about cash deposits, issued a notice under Section 148, leading to an assessment with an addition for cash deposits. The appellant filed an appeal before the CIT(A) with a 5-day delay, which the CIT(A) dismissed in limine without condoning the delay.
Held
The ITAT held that the CIT(A) erred in refusing to condone the 5-day delay. The explanation provided by the appellant (CA out of station and Easter season) constituted sufficient cause. The ITAT remanded the matter back to the CIT(A) with a direction to condone the delay and decide the appeal on merits.
Key Issues
Whether the CIT(A) was justified in refusing to condone a 5-day delay in filing an appeal and if the reasons provided by the appellant constituted sufficient cause for the delay.
Sections Cited
148
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM
Assessment Year: 2015-16 St. Ann's Public School .......... Appellant Muttom, Cherthala 688524 [PAN: AALAS0476N] vs. The Income Tax Officer .......... Respondent Exemption Ward, Alappuzha Appellant by: Shri C.J. Romid Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 05.02.2025 Date of Pronouncement: 10.02.2025 O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 05.08.2024 for Assessment Year (AY) 2015-16.
Brief facts of the case are that the appellant is a trust rendering educational services. The appellant had not filed the return of income for AY 2015-16. However, based on the information that the appellant made cash deposits in the SB Account, the Income Tax Officer, Exemption (hereinafter called "the AO") formed an opinion the income escaped assessment to tax. Accordingly, a notice u/s. 148 of the Income Tax Act, 1961 (the Act) was issued on 07.04.2022. In St. Ann's Public School response to the notice the appellant filed return of income on 06.01.2024. Against the said return of income, the assessment was completed by the AO at total income of Rs. 37,64,086/- by making addition of cash deposits in the bank of Rs. 36,53,000/- as explained money.
Being aggrieved, an appeal was filed before the CIT(A) with a delay of 5 days. The CIT(A) dismissed the appeal in limine without condoning the delay of 5 days.
Being aggrieved, the appellant is in appeal before us in the present appeal.
I heard the rival contentions of both the parties and perused the material available on record. The only issue that arise for my consideration in the present appeal is whether the CIT(A) is justified in refusing to condone the delay of 5 days in filing the appeal before him. The appellant had offered an explanation that the delay had occurred as the Chartered Accountant of the appellant was out of station for two weeks. The appellant was busy with Easter season. However, the CIT(A) refused to condone the delay. Accordingly, dismissed the appeal in limine. I carefully perused the order passed by the learned CIT(A) and find that the CIT(A) has not given any cogent reason as to how the explanation given by the appellant trust does not constitute sufficient cause. In the absence of any material in contrary, the CIT(A) ought to have condone the delay and decided St. Ann's Public School the issues in the appeal on merits. I, therefore, remand the matter back to the CIT(A) with a direction to condone the delay of 5 days and decide the issues in appeal, in accordance with law after affording reasonable opportunity of hearing to the appellant.
In the result, appeal filed by the assessee stands allowed for statistical purposes.