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Facts
An assessment order was passed computing the Assessee's income at Rs. 1,01,70,730/- against a returned income of Rs. 3,23,730/-, with an addition of Rs. 98,47,000/- on account of cash deposits. The Assessee's first appeal before the Ld. CIT(A) was dismissed due to a delay of 245 days.
Held
The Tribunal condoned the 245-day delay in filing the first appeal before the Ld. CIT(A), considering the reason provided by the Assessee regarding the late receipt of the order and the explanation from their tax consultant. The matter was remanded back to the Ld. CIT(A) for a decision on merits.
Key Issues
Whether the delay of 245 days in filing the appeal before the Ld. CIT(A) is justifiable and should be condoned. Whether the matter should be remanded for decision on merits.
Sections Cited
147, 144, 69A, 154
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Income Tax Appellate Tribunal, DELHI
ORDER PER YOGESH KUMAR, U.S. JM: The present appeal is filed by the Assessee against the order of Ld.
Commissioner of Income Tax (Appeals/ National Faceless Appeal Centre (‘Ld. CIT(A)/NFAC’ for short), New Delhi dated 26/11/2024 for the Assessment Year 2017-18.
Brief facts of the case are that, an assessment order came to be passed on 23/03/2023 u/s 147 r.w. Section 144 of Income Tax Act, 1961 ('Act' for short) by computing the income of the Assessee at Rs. 1,01,70,730/- as against returned income of Rs. 3,23,730/- by making an addition of Rs. 98,47,000/- u/s 69A of the Act on account of cash the Assessee preferred the Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 26/11/2024, dismissed the Appeal filed by the Assessee on delay in latches. Aggrieved by the order of the Ld. CIT(A), the Assessee preferred the present Appeal.
None appeared for the Assessee. Considering the issue involved in the present Appeal we deem it fit to decide the Appeal on hearing the Ld. Department's Representative and perused the material available on record.
The Ld. Departmental Representative vehemently submitted that there was no sufficient cause to condone the inordinate delay of 245 days in filing the Appeal before the Ld. CIT(A), therefore, the Ld. CIT(A) has rightly dismissed the first appeal of the Assessee in delay in latches, thus, sought for dismissal of the present Appeal.
We have heard the Department's Representative and perused the material available on record. Aggrieved by the assessment order dated 23/03/2023, the Assessee preferred Appeal before the Ld. CIT(A) with a delay of 245 days. As per the Assessee, the cause of the delay was that ‘the order from A.O. had been received late on account of the previous Tax he had replied it due to unawareness of procedure of Income Tax Department after order u/s 144 there is only appeal is to filed against the order to explain the Assessee view or if there is any rectification of mistake then application u/s 154 of the Income Tax is to be filed.’ However, the Ld. CIT(A) has not condoned the delay and dismissed the Appeal.
It is expected from the Assessee to file the Appeal on time, if the cause for delay is bona- fide and beyond the control of the Assessee, the same can be construed as sufficient cause. The Hon'ble Supreme Court time and again clarified that the delay in filing the Appeal with sufficient cause should be looked into in a liberal way and shall condone the delay.
In the landmark decision in Collector, Land & Acquisition vs. Mst.
Katiji& Others (1987) 167 ITR 471 (SC), the Hon'ble Supreme Court settled the law that the delay when supported by justifiable reasons, must make way for the cause of substantial justice. Considering the above facts and circumstances, we condone the delay of 245 days in filing the first Appeal before the Ld. CIT(A) and remand the matter to the file of the Ld. CIT(A) with a direction to the Ld. CIT(A) to decide the Appeal afresh on its merits in accordance with law after providing opportunity of being heard to the Assessee. statistical purpose.