MYSORE DASAPRAKASH,CHENNAI vs. ITO, NCC-7(1), CHENNAI

The assessee is a partnership firm and did not file the return of income for the year under consideration. The assessing officer received information that the assessee has received certain income on which tax has been deducted at source. The assessee did not file the return of income. The assessing officer reopened the assessment by issue of notice under section 148A(b).

1. Subsequently, the assessing officer passed an order under section 148A(d) and reopened the assessment by issue of notice under section 148. Since the assessee did not respond to the notices, the assessing officer completed the assessment by treating the amount stated in the period statement to the tune of Rs.24,10,488/- as income from other sources. Aggrieved, the assessee filed further appeal before the CIT(A). There was delay of 440 days in filing the appeal before the CIT(A). The assessee submitted before the CIT(A) that the firm was not having any business activity and was in great financial difficulty. The assessee further submitted that the managing partner of the assessee firm is a senior citizen having health issues and therefore could not attend the income tax matters. The assessee also submitted that there was a change in the authorised representative due to which there was a delay. The CIT(A) did not accept the submissions of the assessee and dismissed the appeal in limine. The assessee is in appeal against the order of the CIT(A).

We have heard the parties and perused the material on record. The Ld. AR during the course of hearing reiterated the submissions made before the CIT(A) with regard to the delay in filing the appeal before the CIT(A). The Ld. AR also submitted the condonation petition filed before the CIT(A) along with the medical documents to substantiate the submission that the delay was due to the ill-health of the managing partner. Considering the facts and circumstances unique to the assessee's case, we are of the considered view that there is a reasonable cause for the delay in filing the appeal before the CIT(A). We therefore condone the delay in filing the appeal before the CIT(A). Further, in the interest of natural justice and fair play and considering that the lower authorities have not examined in the impugned issue on merits, we are inclined to give one more opportunity to the assessee to represent the Mysore Dasaprakash :- 3 -: