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

Facts

The assessee's income tax assessments for AY 2013-14, 2014-15, and 2016-17 were reopened due to large cash deposits, leading to additions of Rs. 3 crores as unexplained money under Section 69A, taxed under Section 115BBE. The CIT(A) dismissed the assessee's appeals due to a 4-day delay in filing and the absence of a condonation application, despite providing multiple opportunities. The assessee subsequently filed appeals before the Tribunal with a 106-day delay, which was condoned.

Held

The Tribunal condoned the 106-day delay in filing appeals before it due to the assessee's medical reasons. Regarding the appeals before the CIT(A), the Tribunal noted the minor 4-day delay and the assessee's willingness to file a condonation application if given the chance. Therefore, the Tribunal set aside the CIT(A)'s dismissal order and remanded the matter back to the CIT(A) to provide the assessee another opportunity to file the condonation application and explain the delay.

Key Issues

Whether the CIT(A) was justified in dismissing appeals *in limine* for a minor delay without a formal condonation application, and whether the assessee should be granted a further opportunity to explain the delay.