SANJAY JAIN,CHENNAI vs. ACIT NON CORPORATE CIRCLE 6, CHENNAI

This appeal by the assessee is directed against the order passed by the learned Commissioner of Income Tax(Appeals)-5, Chennai, dated 30.11.2017 in for the assessment year 2013-14 passed U/s. 250(6) r.w.s. 271(1)(c) of the Act.

The assessee has raised several grounds in his appeal however the cruxes of the issues are that (i) The Ld.CIT(A) has erred in not condoning the delay of 37 days in filing the appeal before him. (ii) The Ld.CIT(A) has erred in not adjudicating the ground raised by the assessee against levy of penalty U/s.271(1)(c) of the Act by the Ld.AO.

The brief facts of the case are that the assessee is an individual engaged in the business of trading sports goods, filed his return of income for the assessment year 2013-14 electronically on 19.09.2013 admitting total income of Rs.18,52,490/-. Initially the return was processed U/s.143(1) of the Act and subsequently the case was selected for scrutiny under CASS and notice U/s.143(2) & 142(1) of the Act was issued on 03.09.2014 & 29.07.2015 respectively. Finally assessment order was passed U/s.143(3) of the Act on 18.01.2016 wherein the Ld.AO made addition of Rs.5,00,000/- towards undisclosed income U/s.68 of the Act. Thereafter the Ld.AO imposed penalty on the assessee U/s.271(1)(c) of the Act being 100% of the amount of tax sought to be evaded which works out to Rs.1,54,500/-. Thereafter the Ld.CIT(A), however with delay of 37 days. Since the assessee did not file petition for condoning the delay, the Ld.CIT(A) dismissed the appeal of the assessee in- limini without adjudicating the issue on merits viz., with respect to levy of penalty.

Before us the Ld.AR requested for condoning the delay by pleading that the delay in filing the appeal before the Ld.CIT(A) has occurred due to the oversight of the assessee’s staff in handing over the electronically communicated order imposing penalty to the Chartered Accountant of the assessee. The Ld.DR strongly opposed to the submission of the Ld.AR.

Though we do not find much force in the arguments advanced by the Ld.AR, in the interest of justice, we hereby condone the delay of 37 days in filing the appeal before the Ld.CIT(A) and remit the matter back to the file of Ld.CIT(A) with directions to adjudicate the issue with respect to levy of penalty in accordance with merit and law.

In the result appeal of the assessee is allowed for statistical purpose as indicated herein above.