SHRI. CHOWLOR MATADA SWAMY ,HIRIYUR vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(1), BANGALORE
Facts
The assessee filed an appeal against an order of the CIT(A)-11, but it was delayed by 140 days. The delay was attributed to a misunderstanding by the assessee that a 20% tax deposit was a precondition for filing the appeal, coupled with insufficient cash due to seizure during search proceedings.
Held
The Tribunal noted that the assessee's explanation for the delay, though potentially influenced by wrong advice from a tax consultant and cash shortage due to seizure, was not entirely unreliable. The Tribunal found sufficient cause for the delay.
Key Issues
Whether the delay in filing the appeal before the CIT(A) should be condoned due to sufficient cause.
Sections Cited
Section of Income Tax Act not specified in the provided text
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH : BANGALORE
Before: SHRI WASEEM AHMED & SHRI PRAKASH CHAND YADAV
PER WASEEM AHMED, ACCOUNTANT MEMBER :
This is an appeal filed by the assessee against the order passed by the CIT(A)-11, dated 30/05/2024 vide DIN No.ITBA/APL/M/250/2024-25/1065257486(1) for the assessment year 2019-20.
At the outset, we note that there was a delay of 140 days in filing the appeal by the assessee before the learned CIT-A. It was explained by the assessee before the learned CIT-A that the assessee was under
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the impression that the appeal before the learned CIT-A can only be filed if the assessee deposits 20% of the tax demand in the income tax department. According to the assessee, there was no cash available with him as cash of ₹ 24.50 lakhs was seized during the search at the premise of the assessee. However, when the assessee received penalty notice, the assessee consulted some other tax advocate/ advisor who guided the assessee that it is not a precondition to deposit 20% of the tax demand for filing the appeal before the learned CIT-A. However, in this process the delay has occurred which was not condoned by the learned CIT-A.
However, on appeal before us, we note that the reason given by the assessee for the delay in filing the appeal cannot be treated as unreliable/ unrealistic or bogus simply for the reason that there was handsome cash found from his premises which was seized during the search proceedings. Thus, there is a possibility of shortage of cash with the assessee. Accordingly, the assessee on the wrong advice of the tax consultant could not filed the appeal within the stipulated time before the learned CIT-A. Thus, considering all the facts, we’re of the view that there was sufficient cause which prevented the assessee from filing the appeal within the time permitted under the provisions of law. Accordingly, in the interest of justice and fair play, we direct the ld. CIT- A to condone the delay in filing the appeal before him by the assessee and proceed to adjudicate the issue on merit of the case of the assessee. Hence, the ground of appeal of the assessee is allowed for statistical purposes.
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In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in court virtually on 26th day of August, 2024
Sd/- Sd/- (PRAKASH CHAND YADAV) (WASEEM AHMED) Judicial Member Accountant Member Bangalore Dated, 26th August, 2024 / vms / Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR, ITAT, Bangalore. 6. Guard file By order Asst. Registrar, ITAT, Bangalore
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