SINHUJ DUDH UTPADAK SAH MAN LIMITED,KHEDA vs. THE ITO, WARD-1, NADIAD

Facts

The assessee, a co-operative society of illiterate farmers, filed an appeal against an addition of Rs. 56,33,047/- under Section 69A r.w.s. 115BBE of the Income Tax Act for unexplained cash deposits. The CIT(A) dismissed the appeal due to a delay of 417 days in filing, refusing to condone it. The assessee attributed the delay to annual changes in management and the new management's unawareness of tax procedures.

Held

The Income Tax Appellate Tribunal (ITAT) found sufficient cause for the delay, noting that it was not deliberate and that confirming the addition without hearing would cause grave prejudice. Citing Supreme Court precedents, the ITAT emphasized a justice-oriented approach over technicalities in condonation matters. Therefore, the ITAT condoned the delay and remanded the appeal back to the CIT(A) for adjudication on merits after providing due opportunity of hearing to the assessee.

Key Issues

Whether the CIT(A) erred in not condoning a 417-day delay in filing an appeal due to management changes and lack of tax awareness, leading to the confirmation of an unexplained cash deposit addition without merits being heard.