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Facts
The assessee, a trust, filed its return of income declaring Nil income. The AO reopened the case based on information of cash deposits and disallowed donations. The CIT(A) dismissed the appeal due to non-compliance, citing an incorrect email address for notice issuance and the accountant's ill health.
Held
The Tribunal condoned the delay in filing the appeal before the CIT(A) due to the accountant's ill health. The Tribunal restored the case to the CIT(A) for adjudication on merit after granting the assessee an adequate opportunity to comply.
Key Issues
Whether the CIT(A) erred in dismissing the appeal due to non-compliance caused by an incorrect email address and accountant's ill health, and whether the delay in filing the appeal should be condoned.
Sections Cited
12A of the I.T. Act 1961, 147, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH ‘A’, MUMBAI
Before: SHRI AMARJIT SINGH, HON’BLE & SHRI ANIKESH BANERJEE, HON’BLE
The present appeal filed by the assessee is directed against the order dated 23.11.2023 of the Ld. Commissioner of Income Tax (Appeal), NFAC, Delhi for Assessment Year 2017-18.
2 The assessee has filed application for condonation of delay of 12 days in filing the appeal in the ITAT because of ill health of its Chartered Accountant who suffered with a paralysis attack and was bedridden. We condone the delay in filing the appeal by 12 days considering that there is bona fide reason which resulted marginal delay in filing the appeal.
Fact in brief is that assessee filed its return of income on 25.11.2017 declaring Nil income. The case of the assessee was reopened on the basis of information that assessee had made cash Lion Club of East Bombay Service Fund A.Y. 2017-18 deposit of Rs. 13,09,757/- and Rs. 2,38,019/- in its two bank accounts maintained with Union Bank of India during the demonetization period i.e. 09.11.2016 to 31.12.2016. The AO issued notices to the assessee calling the various details however the assessee has not made compliance during the course of assessment proceeding. Therefore, the whole amount of donation of Rs. 1,41,65,600/- claimed by the assessee as application of funds to charitable activity was disallowed. The assessing officer has also treated the cash deposit of Rs. 2,38,019/- as unexplained cash deposit and added to the total income of the assessee. The AO has passed ex-parte order u/s 147 read with section 144 of the Act and total income was assessed at Rs. 1,35,91,380/-.
The assessee filed appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee because of non- compliance. During the course of appellate proceedings, the ld. Counsel submitted that ld. CIT(A) has issued only one notice and same was not issued on the e-mail ID provided by the assessee and it was issued on a wrong e-mail address jeetamehtal938@gmail.com as against the actual e-mail address of the assessee that was eastbombaylionsclinic@gmail.com. The ld. Counsel also submitted that its Chartered Accountant who was above 80 years suffered a brain stroke and due to which he was bedridden and unable to attend the tax matters.
On the other hand, ld. DR supported the order of lower authorities.
Lion Club of East Bombay Service Fund A.Y. 2017-18 6. Heard both the sides and perused the material on record. The assessee is a trust registered u/s 12A of the I.T. Act 1961. The trust is engaged in the activities of conducting medical/health clinic for poor and needy patient. The assessee undertakes various medical check-up camps and also extend educational help through the projects undertaken by the trust. Because of non-compliance from the side of the assessee, the assessing officer has passed the assessment order ex-parte u/s 144 of the Act disallowing the claim of the assessee trust. Before the ld. CIT(A) the assessee could not make compliance since the notice was not issued to the correct e- mail ID which was provided at the income tax portal. The correct e-mail provided at the income tax portal eastbombaylionsclinic@gmail.com whereas the notice was issued at the wrong e-mail address i.e. jeetamehtal938@gmail.com.
We have perused the order of ld. CIT(A) wherein he has mentioned that assessee has filed condonation of delay in filing the appeal by 111 days however the ld. CIT(A) has not mentioned anything whether the condonation request was allowed or not.
On the other hand, ld. CIT(A) has dismissed the appeal of the assesse for not making compliance to the notice dated 08.11.2023 issued to the assessee. After considering the ill health of the accountant of the assessee as discussed supra, we condone the delay of 111 days in filing the appeal before the ld. CIT(A). Looking to the above facts and circumstances, we consider it appropriate to restore the case of the assessee to the file of ld. CIT(A) for Lion Club of East Bombay Service Fund A.Y. 2017-18 adjudicating on merit after providing adequate opportunity to the assessee to make necessary compliance. Therefore, the appeal of the assessee is allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 29.08.2024