GOODWILL WEALTH MANAGEMENT PVT. LTD.,CHENNAI vs. ITO, CORPORATE WARD-2(3), CHENNAI

This appeal filed by the assessee is directed against the order dated 26.07.2024 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2018-19 in levying penalty under section 270A of the Income Tax Act, 1961 [“Act” in short].

We find that this appeal is filed with a delay of 10 days. The assessee filed an affidavit for condonation of delay explaining reasons for the said delay and prayed for condonation of that delay. On perusal of the condonation petition and upon hearing both the parties, we find that the reasons explained by the assessee are bonafide and therefore, the delay is condoned and admitted the appeal for adjudication.

At the outset, the ld. AR Shri Rahav Rajeev Menon, Advocate submits that by rejecting the condonation petition filed by the assessee, the ld. CIT(A) dismissed the appeal without deciding the issues on merits. He submits that the assessee filed a petition for condonation of delay before the ld. CIT(A). He drew our attention to the petition for condonation of delay and contended that when the Accountant of the assessee demitted office without handing over the records to the management of the assessee company, the assessee had no occasion about the completion of the assessment until receipt of penalty notices. He submits that the delay in filing the appeal is neither wilful nor wanton and only due to the genuine reasons and prayed that the delay may be condoned and direct the ld. CIT(A) to adjudicate the issues on merits.

The ld. DR Shri R. Raghupathy, Addl. CIT vehemently opposed the submissions of the ld. AR and strongly supported the order passed by the ld. CIT(A).

Heard both the parties and perused the material available on record. Admittedly, the assessee filed a petition for condonation of delay in filing the appeal before the ld. CIT(A) giving genuine reasons for the delay. Considering the submissions of the ld. AR and the ld. DR and in the interest of natural justice, we deem it proper to remand the matter to the file of the ld. CIT(A) with a direction to consider the delay condonation petition and condone the delay and adjudicate the grounds raised