VAKHITHASAFANNA,CHENNAI vs. ITO, NCW-15(1), CHENNAI
Facts
The assessee, an individual engaged in broadcasting services, did not file a return of income for AY 2020-21. The AO, upon receiving information about contract payments, interest income, and time deposits, reopened the assessment and made an addition of Rs. 50 Lakhs under Section 69 of the Act. The assessee's appeal before the CIT(A) was dismissed in limine due to a delay of 127 days.
Held
The Tribunal held that there was a reasonable cause for the delay in filing the appeal before the CIT(A), citing the assessee's lack of computer knowledge and her mother's ill-health. The Tribunal directed the CIT(A) to condone the delay. Furthermore, since the additions were made without considering the merits, the Tribunal remitted the appeal back to the AO for reconsideration.
Key Issues
Whether the delay in filing the appeal before the CIT(A) was a reasonable cause, and whether the additions made by the AO without considering the merits warrant a remand.
Sections Cited
250, 147, 69
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: MS. PADMAVATHY.S & SHRI MANU KUMAR GIRI
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 07.11.2025 for Assessment Year (AY) 2020-21.
The assessee is an individual carrying on business of broadcasting services. The assessee did not file the return of income for A.Y 2020-21. The A.O received information that the assessee has received contract payments of
ITA No.3317/Chny/2025 Vakhithasafanna :- 2 -: Rs. 40 lakhs, interest income of Rs. 3,87,352/- and has made time deposit of Rs. 1 Cr. during the year under consideration. Accordingly, the AO reopened the assessment. The A.O concluded the assessment u/s. 147 of the Act after making an addition of Rs. 50 Lakhs u/s. 69 of the Act. The assessee being aggrieved filed further appeal before the CIT(A).
There was a delay of 127 days in filing the appeal before the CIT(A). The CIT(A) did not accept the submissions of the assessee explaining the reasons for delay in filing the appeal and accordingly dismissed the appeal in limine without condoning the delay. Aggrieved, the assessee is in appeal before the Tribunal.
We have heard the parties, and perused the material available on record. The Ld. Authorized Representative (AR) of the assessee submitted that the assessee is not conversant with computer operations and due to her mother's ill-health she was not aware of the reassessment proceedings being concluded. The Ld. AR further submitted that the assessee came to know only when the A.O contacted the assessee for tax payment and when penalty notices were received. The Ld. AR submitted that the assessee filed the appeal before the CIT(A) immediately on advice of the auditor and therefore, the delay was beyond the control of the assessee and not a wilful or deliberate delay. Considering the facts and circumstances unique to the present case, we are of the considered view that there is a reasonable cause for the delay in filing the appeal before the CIT(A) and therefore, we direct the CIT(A) to condone the delay. From the perusal of the order of the A.O, we notice that the A.O has made the addition on the ground that the assessee has not responded to the notices calling for documentary evidences explaining the source for cash withdrawals. Since, the lower authorities have made the
ITA No.3317/Chny/2025 Vakhithasafanna :- 3 -: additions without going into the merits, we remit the appeal back to the AO for consideration on merits by calling for relevant details in order to decide the issue in accordance with law. The assessee is directed to file necessary details as may be called for and cooperate with assessment proceedings. It is ordered accordingly.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on 29th day of January, 2026 at Chennai.
Sd/- Sd/- (मनु कुमार िग#र) (पदमावती यस) (Manu Kumar Giri) (Padmavathy.S) �याियक सद�य �याियक सद�य / Judicial Member लेखा लेखा सद�य लेखा लेखा सद�य सद�य /Accountant Member सद�य �याियक �याियक सद�य सद�य चे�नई/Chennai, �दनांक/Dated: 29th January, 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
