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Facts
The assessee did not file a return of income and the AO added Rs. 54,65,800/- under Section 69A for cash deposits. The Commissioner of Income Tax (Appeals) [CIT(A)] dismissed the assessee's appeal due to a 147-day delay in filing the condonation petition, finding the reasons for delay insufficient.
Held
The tribunal felt the assessee deserved an opportunity to present the facts and thus set aside the CIT(A)'s order, remanding the matter for fresh adjudication. The CIT(A) was instructed to remember that denial of a hearing due to delay should only be resorted to in very extenuating circumstances, and the assessee is to file a condonation petition with an affidavit.
Key Issues
Whether the CIT(A) was justified in dismissing the assessee's appeal due to a 147-day delay in filing the condonation petition, thereby denying an opportunity of being heard on the merits of the case.
Sections Cited
Section 250, Section 69A
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Income Tax Appellate Tribunal, “PΑΤΝΑ ΒΕNCH”, PATΝΑ
Murlachak Krishak Sewa Swalambi Sahakari Samiti Limited, Village- Murlachak Warisaliganj, Disrict – Nawada - 805130 [PAN: AACAM2403Q] ..............…...…………….... Appellant vs. ITO Ward 2(3), Biharsharif ..….............................. Respondent Appearances by: Assessee represented by : Shreyansh Goyal, Adv. Department represented by : Sh. Ashwani Kr. Singal, JCIT on behalf of Smt. Rinku Singh, CIT-DR Date of concluding the hearing : 29.04.2025 Date of pronouncing the order : 05.05.2025 O R D E R
PER SANJAY AWASTHI, ACCOUNTANT MEMBER
The present appeal arises from order u/s 250 of the Income Tax Act, 1961 (hereinafter “the Act”), passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereafter the Ld. CIT(A)”] vide order dated 12.07.2024 for AY 2015-16.
1.1 In this case, it is seen that the Ld. CIT(A) has dismissed the said appeal on the ground that the reasons advanced for seeking a delay of condonation of 147 days were not sufficient for admitting the appeal for adjudication. The Ld. CIT(A) has relied on a numbers of authorities to state that the delay of 147 days is not worth condoning.
Murlachak Krishak Sewa Swalambi Sahkari Samiti Limited 1.1 In this case before the Ld.AO the assessee is seen to have not filed any return of income (ROI) and also did not appear before the Ld. AO in spite of several opportunities given. Thereafter, the Ld. AO took an adverse view of cash deposited in bank accounts amounting to Rs. 54,65,800/- and added the same u/s 69A of the Act.
Aggrieved with this action of Ld. CIT(A), the assessee has filed the present appeal with several grounds which challenge the action of authorities below.
2.1 Before us, the Ld. AR pleaded for a chance to pursue the matter before the Ld. CIT(A) and stated that there were good reasons for the delay before the Ld. CIT(A), which were clearly overlooked by him. The Ld. AR pointed out that the reasons given before the Ld. CIT(A) have been mentioned on page 2 para 2.1 of the impugned order.
2.2 The Ld. DR relied on the orders of authorities below.
We have carefully considered the arguments of Ld. AR/DR and it is felt that the assessee deserves a chance to present the facts before the Ld. CIT(A). However, the assessee would again file a condonation petition accompanied by an affidavit before the Ld. CIT(A), who would do well to remember that denial of opportunity of hearing on the basis of delay has to be resorted to only in very extenuating circumstances. To this extent, we set aside the impugned order and remand the matter back to the file of Ld. CIT(A) for fresh adjudication.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 05.05.2025 Sd/- Sd/- (Duvvuru RL Reddy) (Sanjay Awasthi) Vice President Accountant Member Murlachak Krishak Sewa Swalambi Sahkari Samiti Limited Dated: 05.05.2025 AK, Sr. P.S. Copy of the order forwarded to: 1. Murlachak Krishak Sewa Swalambi Sahakari Samiti Limited 2. ITO Ward 2(3), Biharsharif 3. CIT(A)- 4. CIT- 5. CIT(DR)