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Facts
The assessee filed twin appeals for AY 2017-18, challenging the confirmation of a quantum addition of Rs.112.44 Lacs and a consequential penalty of Rs.19.38 Lacs under Section 270A. There was a 150-day delay in the quantum appeal, for which condonation was sought, with the assessee citing non-service of hearing notices and lack of knowledge of the impugned order. The assessee had failed to appear before the lower authorities.
Held
The Tribunal, while noting the assessee's negligence, admitted the quantum appeal based on natural justice principles. It restored both appeals to the CIT(A) for de novo adjudication, directing the assessee to promptly plead and prove its case. The appeals were allowed for statistical purposes.
Key Issues
Condonation of delay in filing appeal and restoration of appeals to CIT(A) for de novo adjudication.
Sections Cited
270A
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Income Tax Appellate Tribunal, ‘DB’, AMRITSAR BENCH, AMRITSAR
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI UDAYAN DAS GUPTA, JM
O R D E R Manoj Kumar Aggarwal (Accountant Member) In aforesaid twin appeals for Assessment Year (AY) 2017-18, 1. the assessee is aggrieved by confirmation of quantum addition for Rs.112.44 Lacs and confirmation of consequential penalty u/s 270A for Rs.19.38 Lacs. The registry has noted delay of 150 days in quantum appeal the condonation of which has been sought by Ld. AR on the strength of condonation petition which is accompanied by an affidavit of the assessee. It has been stated that the hearing notices were not served on the assessee and the impugned order was not within the knowledge of the assessee. The Ld. AR also prayed for restoring both these appeals back to Ld. CIT(A) since the assessee has failed to appear before any of the lower authorities. The Ld. Sr. DR has pleaded for dismissal of the appeals. The impugned orders have been passed by Ld. Commissioner of Income Tax (Appeals), NFAC [CIT(A)] on 27-12-2023 and 12-06-2024 respectively.
Though the assessee has remained negligent, however, keeping in mind the principles of natural justice, we admit the quantum appeal and restore both the appeals back to the file of Ld. CIT(A) for do novo adjudication with a direction to the assessee to plead and prove its case forthwith.
Both the appeals stand allowed for statistical purposes. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. (UDAYAN DAS GUPTA) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 27/10/2025 आदेश की "ितिलिप अ"ेिषत /Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. ""थ"/Respondent 3. आयकरआयु"/CIT 4. िवभागीय"ितिनिध/DR 5. गाड"फाईल/GF