MYSORE DASAPRAKASH,CHENNAI vs. ITO, NCC-7(1), CHENNAI
Facts
The assessee, a partnership firm, failed to file its income tax return for AY 2019-20. The AO received information about income on which TDS was deducted, and reopened the assessment under Section 148A(b) and 148 after the assessee did not respond to notices. The assessment was completed treating Rs. 24,10,488 as income from other sources.
Held
The Tribunal noted that there was a significant delay of 440 days in filing the appeal before the CIT(A). However, considering the ill-health of the managing partner and other circumstances, the Tribunal condoned the delay. The Tribunal also observed that the lower authorities had not examined the issue on merits.
Key Issues
Whether the delay in filing the appeal before the CIT(A) should be condoned and whether the matter should be remanded to the Assessing Officer for adjudication on merits.
Sections Cited
148A(b), 148, 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & MS. PADMAVATHY.S
आदेश / O R D E R PER PADMAVATHY.S, A.M: This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, (in short "CIT(A)") passed u/s. 250 of the Income Tax Act, 1961 (in short "the Act") dated 03.10.2025 for Assessment Year (AY) 2019-20.
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).
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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
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case properly. Accordingly, we remit the appeal back to the assessing officer to consider the impugned issue on merits by calling for necessary details as may be required to decide the case in accordance with law. The assessee is directed to file necessary documents and cooperate with assessment proceedings without seeking unnecessary adjournments. It is ordered accordingly.
Further, we also levy a cost of Rs.15,000/- (Fifteen Thousand only) in the appeal since considerable time and efforts have been spent by the Exchequer and for the reason that the assessee being delinquent before the lower authorities. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the AO.
In result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 25th day of February, 2026 at Chennai.
Sd/- Sd/- (एबी टी. वक�) (पदमावती यस) (ABY. T. Varkey) (Padmavathy.S) �याियक �याियक सद�य �याियक �याियक सद�य सद�य / Judicial Member सद�य लेखा लेखा सद�य लेखा लेखा सद�य सद�य /Accountant Member सद�य चे�नई/Chennai, �दनांक/Dated: 25th February, 2026. EDN, Sr. P.S आदेश क� �ितिल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकर आयु�/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय �ितिनिध/DR 5. गाड� फाईल/GF
