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Facts
The assessee's appeal was time-barred by 252 days. The assessee sought an opportunity to make submissions before the Assessing Officer due to alleged lack of proper representation and appreciation of documents in earlier proceedings. The assessee claimed business expenses which were disallowed on an ad-hoc basis due to lack of substantiation.
Held
The Tribunal condoned the delay in filing the appeal. Recognizing the need for justice, the Tribunal granted the assessee one more opportunity to make submissions and furnish documentary evidence before the Assessing Officer for de novo assessment.
Key Issues
Whether to condone the delay in filing the appeal and grant an opportunity for fresh submissions/evidence before the AO.
Sections Cited
144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “SMC”, DELHI
Before: SHRI VIKAS AWASTHY
ORDER
PER VIKAS AWASTHY, JM:
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 18.12.2024, for Assessment Year 2014-15.
The appeal is time barred by 252 days. The assessee has an affidavit citing reasons for delay in filing of appeal. After perusal of the same, I am satisfied that delay in filing of appeal is not intentional, the delay has been caused for the reasons stated in affidavit which appears to be bonafide. Considering the explanation furnished by the assessee, delay of 252 days in filing of appeal is condoned and appeal is taken up for adjudication on merits.
Shri Manoj Batra, appearing on behalf of the assessee submitted that the assessee is engaged in the business of installation, repair and maintenance of DG sets. The assessee filed his original return of income on 31.07.2017 declaring total income of Rs.13,37,290/-. The case of the assessee was selected for scrutiny through CASS. In scrutiny assessment proceedings, the Assessing Officer (AO) made ad-hoc disallowance of 50% of the expenditure claimed. The ld. Counsel submits that proper opportunity of hearing/making submissions was not provided to the assessee during assessment. Even, during First Appellate proceeding, the CIT(A) failed to appreciate the documents furnished by the assessee. The ld. Counsel thus prayed for an opportunity to the assessee to make submissions before the AO.
Shri Manoj Kumar, representing the department submitted that the assessee had claimed expenditure to the tune of Rs.37,23,490/-. Since, the expenditure was not substantiated with documentary evidences before the AO, as well as, the CIT(A), ad-hoc disallowance of 50% expenditure made by the AO was sustained by the CIT(A). The ld. DR prayed for upholding the impugned order.
Both sides heard, orders of the authorities below examined. The assessee has claimed business expenses of Rs.37,23,490/-. During assessment proceeding, the assessee did not furnish the details as sought by the AO to substantiate the expenditure claimed. Multiple notices were sent to the assessee, however, the assessee failed to respond to the notices. The AO invoked the provisions of section 144 of the Income Tax Act and completed the assessment by disallowing 50% of the expenditure. In First Appellate proceedings no documents were furnished by the assessee to substantiate the claim. The contention of the assessee is that the assessee was not properly represented by the Authorized Representative before the authorities below. To meet the ends of justice, I deem it appropriate to grant
one more opportunity to the assessee to make submissions and furnish relevant documentary evidences in support of expenditure claimed before the AO. The AO shall grant reasonable opportunity of making submissions to the assessee before completing assessment denovo, in accordance with law.
The assessee shall respond to the notice(s) served by the AO, without fail.
In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court on Tuesday the 16th day of December, 2025.