SRI TIRUMALA ESTATES AND FARMLANDS,VISAKHAPATNAM vs. ACIT, CENTRAL CIRCLE-1, VISAKHAPATNAM

Facts

The assessee, a real estate firm, did not file its income tax return for AY 2017-18. A survey revealed undisclosed sale consideration and expenses disallowance, leading to a best-judgment assessment with several additions. The assessee filed an appeal before the CIT(A) with a significant delay of 965 days, citing lack of awareness of the online portal and reliance on an uncommunicative tax practitioner.

Held

The CIT(A) dismissed the appeal in limine for not explaining "sufficient cause" for the 965-day delay under Section 249. The Tribunal upheld this dismissal, observing that the assessee's reasons for the delay, including a further 126-day delay even after allegedly receiving the assessment order, demonstrated negligence and a casual approach to tax matters. Citing Supreme Court precedents, the Tribunal ruled that such an inordinate and unexplained delay could not be condoned, thus dismissing both appeals.

Key Issues

Whether the delay of 965 days in filing the appeal before the CIT(A) could be condoned under "sufficient cause" as per Section 249 of the Income Tax Act, 1961, given the assessee's reasons of lack of online portal familiarity and reliance on a tax practitioner.