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Facts
The assessee challenged an addition of Rs. 42,41,712/- made by the AO and confirmed by the CIT(A) for AY 2016-17, rejecting their agricultural income claim due to insufficient substantiation. The appeal was filed with a 587-day delay, which the assessee sought to condone, citing residence in a remote area and unfamiliarity with computers as reasons for the delay.
Held
The Tribunal condoned the delay, admitted the appeal, and restored the case to the CIT(A) for fresh adjudication, directing the assessee to provide evidence for their claim. This restoration was conditional on the assessee depositing Rs. 10,000/- to the Poor Patient Relief Fund of PGI Hospital, Chandigarh, within 30 days.
Key Issues
Whether the addition related to agricultural income was justified due to lack of substantiation, and if the delay in filing the appeal should be condoned based on the reasons provided by the assessee.
Sections Cited
143(3)
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Income Tax Appellate Tribunal, “SMC” BENCH, CHANDIGARH
Before: HON’BLE SHRI LALIET KUMAR, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2016-17 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 28-04-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 143(3) of the Act on 22-11-2018. The registry has noted delay of 587 days in the appeal, the condonation of which has been sought by the assessee on the strength of condonation petition which is accompanied by an affidavit of the assessee. In para-2 of the affidavit, it has been stated that the appeal could not be filed in time since the assessee was residing in remote area of Himachal Pardesh and he was not familiar with the working of computers. There was e-mail Id and contact number of the accountant in the login portal of the assessee and the impugned order was not in the knowledge of the assessee.
In the assessment order, Ld. AO made addition of Rs.42,41,712/- by rejecting agricultural income claim of the assessee. The assessee could not substantiate the same. The Ld. CIT(A) confirmed the assessment for the same very reasons. Aggrieved, the assessee is in further appeal before us. The Ld. Sr. Counsel placed on record various documents to assert that the assessee is in a position to substantiate its claim and pleaded for another opportunity of hearing. The Ld. Sr. DR pleaded for dismissal of the appeal.
Keeping in mind the principles of natural justice and considering the background of the assessee, we admit the appeal and restore the appeal back to the file of Ld. CIT(A) for fresh adjudication with a direction to the assessee to plead and prove its case. The same would come at a cost of Rs.10,000/- which shall be deposited by the assessee within 30 days from the date of receipt of this order to the Poor Patient Relief Fund of PGI Hospital, Chandigarh. The proof of the same would be furnished to Ld. CIT(A) who would proceed for fresh adjudication of the appeal.
The appeal stand allowed for statistical purposes. Order pronounced on 24th February, 2026.