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Facts
The assessee's appeal was dismissed by the Ld. Commissioner in limine due to a delay of 921 days and non-compliance with procedural requirements. The Assessing Officer had made an addition of Rs. 21,45,408/- under section 69C of the Act.
Held
The Tribunal condoned the delay of 921 days, subject to a deposit of Rs. 11,000/-, considering the peculiar facts and circumstances and the liberty granted for e-filing. The case was remanded to the Ld. Commissioner for decision on merits, with an opportunity for the assessee to substantiate their claim.
Key Issues
Whether the appeal filed with a significant delay and procedural non-compliance should be admitted for adjudication on merits.
Sections Cited
143(3), 147, 69C, 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “SMC”, MUMBAI
Before: SHRI NARENDER KUMAR CHOUDHRY & SMT RENU JAUHRI
Per : Narender Kumar Choudhry, Judicial Member:
This appeal has been preferred by the assessee against the order dated 15.11.2023, impugned herein, passed by the National Faceless Appeal Center (NFAC)/ Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) under section 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2010-11.
Mr. Anish M. Kacharia (L/H of Late Shri Mukesh L Kacharia)
In the instant case, the Assessing Officer (AO) vide order dated 07.03.2016 under section 143(3) read with section 147 of the Act, has made the addition of Rs.21,45,408/- as unexplained expenditure under section 69C of the Act which was challenged by the assessee before the Ld. Commissioner by filing an appeal on 12.04.2016 in physical form, which was dismissed by the then Ld. Commissioner on 27.09.2018, however, with liberty to the Assessee to file the appeal electronically as per the provisions of the Rules. Thereafter, immediately on 22.10.2018 the Assessee filed the appeal in appropriate manner but with a delay of 921 days.
Despite sending more than 9 notices to the Assessee by the Ld. Commissioner, the Assessee except seeking adjournment on some of the occasions, did not file any reply/documents in support of his claim, therefore the Ld. Commissioner, by analyzing the provisions of law and considering the delay which was not substantiated by the assessee, ultimately dismissed the appeal of the Assessee in limine and/or on the point of limitation.
The Assessee being aggrieved is in appeal before us.
We have heard the parties and perused the material available on record. No doubt the Assessee has preferred first appeal against the assessment order dated 07.03.2016 in physical form before the Ld. Commissioner within time i.e. on 12.04.2016 and thereafter without using due diligence continued the same for a long proceeding for a long time till the decision by Mr. Anish M. Kacharia (L/H of Late Shri Mukesh L Kacharia) the then Ld. CIT(A) for dismissal of the same being not maintainable in view of the latest provisions of the rule/non-filing of appeal in electronic mode, which amounts to inaction/negligence of the Assessee and therefore the Assessee does not reserve any leniency. However, considering the peculiar facts and circumstances, as the liberty was granted by the then Ld. Commissioner for e-filing of the appeal and the assessee complied with the direction of the Ld. Commissioner within time and therefore considering the facts and circumstances in totality, we are inclined to condone the delay of 921 days in filing the appeal before the Ld. Commissioner, however, subject to deposit of Rs.11,000/- in the Revenue Department within 30 days of the receipt of this order. The delay is condoned accordingly.
Coming to the merits of the case, we observe the Ld. Commissioner dismissed the case in limine for want of limitation but not on merit and therefore we are inclined to remand the case to the file of the Ld. Commissioner for decision on merits, suffice to say by affording reasonable opportunity to the assessee to substantiate his claim.
We also direct the assessee to cooperate with the appellate proceedings and file the relevant submissions/documents which would be essential/required by the Ld. Commissioner for proper adjudication of the case. We clarify that in case of further default, the Assessee shall not be entitled for any leniency.
Mr. Anish M. Kacharia (L/H of Late Shri Mukesh L Kacharia) 8. In the result, the appeal filed by the assessee stands allowed for statistical purposes.
Order pronounced in the open court on 25.06.2024.