KAHNAYALAL ANIL KUMAR,CHENNAI vs. ITO NCW 5(1), CHENNAI

The assessee filed this appeal against the order of the Commissioner of Income Tax (Appeals)-5, Chennai in dated 04.06.2018 for assessment year 2014-15.

Shri. Kahnayalal Anil Kumar, the assessee, sold 75,000 shares of M/s. Esaar India Ltd., computed long term capital gains of Rs. 13,13,695/- and claimed it as a deduction u/s. 10(38) for assessment year 2014-15. While making the assessment for assessment year 2014- 15, the Assessing Officer after considering various materials collected by him and furnished by the assessee treated the sale of shares as a penny stock and assessed the entire sale consideration as an “income from other sources”. Aggrieved, the assessee filed an appeal before the CIT(A). The CIT(A) did not condone the delay in filing the appeal and dismissed it as barred by limitation. Aggrieved, the assessee filed this appeal.

The Ld. AR submitted that the assessee misplaced the assessment order as it got mixed up with various papers. By the time he could trace and file the appeal there was a delay of 5 days in filing the appeal. So, he pleaded that the delay is neither wilful nor wanton and sought condonation of delay before the Ld. CIT(A). The Ld. CIT(A), unfortunately, refused to condone the delay and dismissed the appeal as barred by limitation. The assessee pleaded that the delay be condoned in the interests of justice and due justice is rendered to the assessee.

We heard the rival submissions and condone the delay. The issue is remitted back to the Ld. CIT(A) for affording effective opportunity to the assessee and pass the order on merits in accordance with law.

In the result, the assessee’s appeal is allowed.