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.
Sections Cited
147, 144, 270A, 133A, 148, 142(1), 40(a)(ia), 249, 246A, 139
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Income Tax Appellate Tribunal, Visakhapatnam Bench
आदेशकी प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:- 1. निर्धाररती/The Assessee : Shri Tirumala Estates and Farmlands, D.No.9-39-1/2, Flat No.102, Sai Sampath Enclave, Pithapuram Colony, Maddilapalem, Visakhapatnam. 2. रधजस्व/ The Revenue : The Assistant Commissioner of Income Tax, Central Circle – 1, Visakhapatnam. 3. The Principal Commissioner of Income Tax, Visakhapatnam. 4. नवभधगीयप्रनतनिनर्, आयकर अपीलीय अनर्करण, / DR, ITAT, Visakhapatnam. 5. गधर्ाफ़धईल / Guard file
आदेशधिुसधर / BY ORDER
Sr. Private Secretary ITAT, Hyderabad