SRI GOVINDA BEHARILAL THAKURAL,BANGALORE vs. INCOME TAX OFFICER WARD-1(2)(1), BANGALORE

The appeal filed by the assessee is directed against the order dated 16/1/2019 passed by ld CIT(A)-1, Bangalore and it relates to asst. year 2013-14.

The assessee is aggrieved by the decision of ld CIT(A) in dismissing the appeal in limini, without condoning the delay.

We heard the parties and perused the record. The assessee is engaged in the business of construction and sale of plots under joint venture. The assessment was completed by an order dated 31/3/2016 passed u/s 143(3) of the Act, wherein the AO disallowed claim of penalty of Rs.15,000/- and also added unexplained credit of Rs.54.17 lakhs. According to the assessee, he did not receive the copy of asst. order and hence he applied for certified copy of the same before the AO, which was given to the assessee on 8/9/2016. The assessee filed the appeal before the ld CIT(A) on 23/9/2016, i.e., within the limitation period of 30 days from the date of receipt of certified copy of the order. The ld CIT(A) posted the appeal for hearing on several dates but the assessee did not respond to the same. Some of the notices were returned back un-served by the postal department. Hence, the ld CIT(A) sent the notice by email also but there was no response from the assessee. Further, the ld CIT(A) also took the view that there is a delay of 146 days in filing the appeal if the date of assessment order is taken into consideration. Accordingly, he dismissed the appeal of the assessee in limine. The assessee is aggrieved.

The ld AR submitted that the assessee did not receive the copy of assessment order and hence the assessee was constrained to obtain certified copy of the order, which was given to the assessee on 8/9/2016. The assessee has filed the appeal within 30 days from the date of receipt of the certified copy of the order. He submitted that the assessee could not appear before the ld CIT(A) for the reasons beyond his control. Accordingly he prayed that the technical delay, if any, in filing the appeal before the ld CIT(A) may be condoned and the matter may be restored to the file of the ld CIT(A) for adjudicating the grounds on merits.

We heard ld DR and perused the record. Considering the fact that the assessee has obtained certified copy of the order only on 8/9/2016 in view of non receipt of original assessment order, we are of the view that there is reasonable cause for the assessee in filing the appeal belatedly before the ld CIT(A). Accordingly we condone the delay in filing the appeal before the ld CIT(A).

Before us, the assessee has not given any explanation for not responding to the notices and email sent by the assessee. At the same time, in the interest of natural justice, we are of the view that the assessee should be provided with an opportunity to present his case before ld CIT(A). Accordingly we are of the view that the assessee should bear cost for being delinquent. Accordingly we impose a cost of Rs.5,000/- (Rupees Five thousand) upon the assessee which shall be paid to the credit of the Income-tax Department as ‘other fees’ within 30 days from the date of receipt of this order. Subject to the payment of the above said cost, we set aside the order passed by the ld CIT(A) and restore all the issues to his file for adjudicating them on merits.

In the result, the appeal filed by the assessee is allowed for statistical purposes.