LAKSHMI NARAYANA KOTHA,KAKINADA vs. INCOME TAX OFFICER, WARD-1, KAKINADA

Facts

The assessee's case was reopened under Section 147 of the Income Tax Act due to substantial cash deposits, leading to an addition of Rs. 3 crores under Section 69A, taxed under Section 115BBE. The assessee's appeal to the CIT(A) against this assessment was dismissed *in limine* due to a 4-day delay in filing, without an accompanying application for condonation of delay. The assessee filed an appeal to the ITAT, also with a 106-day delay, which was attributed to medical reasons.

Held

The ITAT condoned the 106-day delay in filing the appeal before itself, finding the reasons genuine and following the principle of a lenient approach in condoning delays. Regarding the CIT(A)'s dismissal, the ITAT held that the CIT(A) erred in dismissing the appeal for a minor 4-day delay without providing the assessee an adequate opportunity to file a condonation application. The ITAT set aside the CIT(A)'s order and remanded the matter back to the CIT(A) to reconsider the issue after allowing the assessee to file and explain the reasons for the delay.

Key Issues

Whether the CIT(A) was justified in dismissing an appeal *in limine* for a minor delay without providing an opportunity to the assessee to file a condonation application; Condonation of delay in filing appeals before the Tribunal due to medical reasons.