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Facts
The assessee deposited Rs. 75 lakhs during demonetization, with total credits of Rs. 2.90 crores in bank accounts for AY 2017-18. Despite a notice under section 142(1), the assessee failed to file an Income Tax Return, leading the AO to make an addition of Rs. 2.90 crores. The CIT(A) subsequently dismissed the assessee's appeal.
Held
The Tribunal condoned a 103-day delay in filing the appeal, attributing it to the assessee's illness and the death of their CA, finding no mala fide intention. Considering the assessee's non-appearance during both assessment and first appellate proceedings, the Tribunal, in the interest of justice, restored the matter to the file of the AO for a fresh order.
Key Issues
Condonation of delay in filing appeal due to assessee's illness and death of CA; restoration of assessment proceedings to AO due to non-appearance of assessee during original assessment and first appeal.
Sections Cited
139, 142(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘E’: NEW DELHI
Before: SHRI PRADIP KUMAR KEDIA & SHRI VIMAL KUMARShri
The application for Condonation of delay of 103 days in filing appeal and appeal of the Assessee are against order dated 17/10/2023 of the National Faceless Appeal Centre (NFAC), Delhi, passed by Learned Commissioner of Income Tax(Appeals) [hereinafter referred to as ‘Ld. CIT(A)’]arising out of Assessment Order dated 26/12/2019 of the Income Tax Officer, Ward-44(6), Delhi[hereinafter referred to as “Ld. AO”] for the Assessment Year 2017-18.
Brief facts of case are that as per the information, the assessee had deposited Rs.75,00,000/- during demonetization period (i.e. 09/11/2016 to 30/12/2016) in bank account No.916020063684958 maintained with Axis Bank, New Delhi. Further, total amount of Rs.2,90,84,202/- was credited into the bank account no. 916020063674958 (amounting Rs.2,89,02,555/-) maintained with Axis Bank and in bank account no.600610310001501 (amounting Rs.1,81,646) maintained with Bank of India, Delhi during the period of FY 2016-17 relevant to the Assessment Year 2017-18. The assessee had neither filed any online response with regard to the source of cash deposited during demonetization period nor have filed any Income Tax Return u/s 139 of the Act. The case was identified as “Non Filer” and a notice u/s 142(1) of Income Tax Act, 1961 (hereinafter referred as ‘the Act’) was issued to the assessee on 12/03/2018 with a request to file the return of income for Assessment Year 2017-18. The assessee failed to file return for Assessment Year 2017-18, in compliance to this notice u/s 142(1) of the Act. Learned AO vide order dated 26/12/2019 completed assessment proceedings by making addition Page2 of Rs.2,90,84,200/-
Learned Authorized Representative for appellant/assessee submitted that there is delay of 103 days in filing appeal due to illness of appellant/assessee and death of his CA. Affidavit dated 05/08/2024 mentions that due to bad health appellant/assessee had to close his business. Appellant/assessee was not aware of notices issued by the Department and could not appear before the Learned AO and Learned CIT(A). So, matter be referred to Learned AO.
Learned Authorized Representative for Revenue submitted that due to nonappearance of appellant, the appeal was dismissed.
From appraisal of record, it is amply clear that there is delay of 103 days in filing the appeal due to illness of appellant/assessee and death of CA. The explanation does not smack of mala fides as assessee has not gain anything by not filing appeal within period of limitation. So the delay in filing the appeal is condoned. 7. From examination on record, it is crystal clear that appellant/assessee failed to appear during Assessment proceedings and appellate proceeding before Ld. AO and Ld. CIT(A). Learned CIT(A) decided assessment proceedings and appeal in absence of appellant. Affidavit dated 05.08.2024 refers to bad health of appellant and death of CA. In view of above material facts, in Page3
Hence the appeal of the assessee is allowed for statistical purposes. Order pronounced on12th November, 2024.