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Facts
The assessee's appeal for AY 2017-18 arose from an order confirming an addition of Rs. 15.69 Lacs made by the AO on a best judgment basis u/s 144 of the Act. The assessee faced a delay of 227 days in filing the appeal. The assessee cited unawareness of appellate proceedings and dependence on a representative who failed to attend.
Held
The Tribunal condoned the delay, citing the principle of natural justice, despite the assessee's negligence. The appeal was restored to the CIT(A) for de novo adjudication with a direction to the assessee to substantiate its case.
Key Issues
Whether to condone the delay in filing the appeal and whether to restore the matter for de novo adjudication by the CIT(A).
Sections Cited
144
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Income Tax Appellate Tribunal, “C” BENCH, CHENNAI
Before: HON’BLE SHRI ABY T. VARKEY, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आयकर अपीलीय अिधकरण “सी” "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, CHENNAI माननीय "ी एबी टी. वक", "ाियक सद" एवं माननीय "ी मनोज कुमार अ'वाल ,लेखा सद" के सम)। BEFORE HON’BLE SHRI ABY T. VARKEY, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ (िनधा*रणवष* / Assessment Year: 2017-18) Shri Harish Kumar ITO बनाम/ 123-2, K K Garden, Non-Corporate Ward-2(1), Manlyakaranpalayam, Ganapathy, Coimbatore. Vs. Coimbatore-641 006. "थायीलेखासं./जीआइआरसं./PAN/GIR No. AWHPC-4931-D (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant by : Shri G. Tarun (Advocate) - Ld. AR " थ"कीओरसे/Respondent by : Ms. R. Anita (Addl.CIT) - Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 24-09-2024 घोषणाकीतारीख /Date of Pronouncement : 24-09-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 06-10-2023 in the matter of assessment framed by the Ld. AO on best judgment basis u/s 144 of the Act on 22-11-2019. The Registry has noted delay of 227 days in the appeal, the condonation of which has been sought by the assessee on the strength of affidavit of the assessee. It has been stated that the assessee was unaware of the appellate proceedings and no notice was received by him and the assessee was completely dependent on the erstwhile authorized representative who failed to attend the proceedings also. Considering the same, we condone the delay and proceed for adjudication of the appeal on merits. The limited payer of Ld. AR is to send back the matter back to the file of lower authorities which has been opposed by Ld. Sr. DR.
In the assessment order, Ld. AO made addition of Rs.15.69 Lacs which represents cash deposit in bank accounts. The Ld. CIT(A) confirmed the same since the assessee failed to appear before any of the lower authorities. Aggrieved, the assessee is in further appeal before us. 3. Though the assessee has remained negligent in substantiating its case, however, keeping in mind the principle of natural justice, we accept the prayer of Ld. AR and restore the appeal back to the file of Ld. CIT(A) for de novo adjudication with a direction to the assessee to substantiate its case forthwith. 4. The appeal stand allowed for statistical purposes. Order pronounced on 24th September, 2024 (ABY T. VARKEY) (MANOJ KUMAR AGGARWAL) "ाियक सद" /JUDICIAL MEMBER लेखा सद" / ACCOUNTANT MEMBER चे2ई Chennai; िदनांक Dated :24-09-2024 DS आदेशकीIितिलिपअ'ेिषत/Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. " थ"/Respondent 3. आयकरआयु;/CIT Coimbatore. 4. िवभागीय"ितिनिध/DR 5. गाड@फाईल/GF