PRAMOD KUMAR SINGH,BHOPAL vs. ITO-WARD-3(1), BHOPAL
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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI VIJAY PAL RAO & SHRI B.M. BIYANI
आदेश / O R D E R
Per Bench:
The captioned three appeals are filed by same assessee, the details are as under:
(i) ITA No. 300/Ind/2023 is directed against appeal-order dated 26.04.2023 passed by learned Commissioner of Income-tax (Appeals), NFAC, Delhi [“CIT(A)”] which in turn arise out of assessment-order dated 26.03.2015 passed by ITO-3(1), Bhopal
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Shri Pramod Kumar Singh, Bhopal ITA Nos. 300 to 302/Ind/2023 AYs. 2007-08
[“AO”] u/s 144 read with section 147 of the Income-tax Act, 1961
[“the Act”].
(ii) ITA No. 301/Ind/2023 is directed against appeal-order dated
26.04.2023 passed CIT(A) which in turn arise out of penalty-order
dated 28.09.2015 passed by AO u/s 271(1)(c) of the Act.
(iii) ITA No. 302/Ind/2023 is directed against appeal-order dated
15.09.2022 passed CIT(A) which in turn arise out of penalty-order
dated 28.09.2015 passed by AO u/s 271(1)(b) of the Act.
Since these appeals relate to same assessee and the issued involved
are inter-related, they were heard together at the request of parties and are
being disposed of by this consolidated order for the sake of convenience,
brevity and clarity.
The registry has informed that the there is a delay of 46 days in first
two appeals and 269 days in third appeal, therefore all three appeals are
time-barred. Ld. AR for assessee submitted that the assessee has filed an
application for condonation of delay supported by an affidavit on stamp, the
same is scanned and re-produced below:
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Shri Pramod Kumar Singh, Bhopal ITA Nos. 300 to 302/Ind/2023 AYs. 2007-08
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Shri Pramod Kumar Singh, Bhopal ITA Nos. 300 to 302/Ind/2023 AYs. 2007-08
Drawing our attention to the averments made by assessee, Ld. AR
submitted that the assessee is a senior citizen. The assessee’s business had
closed and there is no source of income. The assessee is suffering from high
blood pressure and heart disease, copies of medical reports/prescriptions of
various dates and doctors are filed at Page 1-39 of Paper-Book. The assessee
also met a serious road accident in the year 2021. The assessee’s daughter
also got divorced and the legal battle is going since the year 2019. The
assessee’s twin brothers also expired in the year 2020. This way, the
assessee had been passing through an extremely difficult phase of life. In
assessee’s words, he is facing a ‘merciful’ state. Therefore, due to such
onerous circumstances, the assessee could not make statutory compliances.
Ld. AR submitted that there is no deliberate lethargy, negligence, mala fide
intention or ulterior motive of assessee in making delay and the assessee
does not stand to derive any benefit because of delay. He prayed with folded
hands that the sole reason of delay is the onerous circumstances only,
therefore a liberal approach be taken and delay be condoned to meet the end
of justice. Ld. DR for Revenue was fair enough in not raising any objection
against assessee’s prayer and left the matter to the wisdom of Bench. We
have considered the explanation advanced by assessee and in absence of
any contrary fact or material on record, the assessee is found to have a
‘sufficient cause’ for delay in filing present appeals. We find that section
253(5) of the Act empowers the ITAT to admit an appeal after expiry of
prescribed time, if there is a sufficient cause for not presenting appeal
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Shri Pramod Kumar Singh, Bhopal ITA Nos. 300 to 302/Ind/2023 AYs. 2007-08
within prescribed time. It is also a settled position by Hon’ble Supreme
Court in Collector, Land Acquisition Vs Mst. Katiji and others 1987 AIR
1353, 1987 2 SCC 387 that whenever substantial justice and technical
considerations are opposed to each other, the cause of substantial justice
must be preferred by adopting a justice-oriented approach. Thus, taking into
account the provision of section 253(5) and the decision of Hon’ble Supreme
Court, we take a judicious view, condone delay, admit appeal and proceed
with hearing.
Briefly stated, the background facts leading to present appeals are
such that the AO, on the basis of AIR information revealing that the
assessee had made cash-deposits in bank a/c, issued notice u/s 148 dated
28.02.2014 to initiate proceeding u/s 147 of the Act. The notice issued by
AO u/s 148 as well as subsequent notices issued u/s 142(1) from time to
time remained uncompiled by assessee. Ultimately, the AO framed
assessment u/s 144 vide assessment-order dated 26.03.2015 determining
total income at Rs. 35,02,709/- consisting solely of the addition u/s 68 on
account of unexplained deposits in bank a/c. The AO also initiated penalty
proceeding u/s 271(1)(c) for concealing particulars of income as well as u/s
271(1)(b) for non-compliances of notices u/s 142(1). Ultimately, vide order
dated 28.09.2015, the AO imposed penalty of Rs. 12,00,000/- u/s 271(1)(c)
qua the impugned addition of Rs. 35,02,709/- made in assessment-order.
Further, the AO, vide a separate order dated 28.09.2015, imposed penalty of
Rs. 40,000/- u/s 271(1)(b) for non-compliances of notices u/s 142(1).
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Shri Pramod Kumar Singh, Bhopal ITA Nos. 300 to 302/Ind/2023 AYs. 2007-08
Against assessment-order as well as both penalty-orders as aforesaid, the
assessee went in three separate appeals to CIT(A) but could not prosecute
on the dates of hearing fixed by CIT(A). Therefore, the CIT(A) dismissed those
appeals for non-prosecution. Now, the assessee has come in captioned
appeals before us assailing the orders of lower authorities.
During hearing, it transpired that all three original orders by AO as
well as the orders of first-appeals by CIT(A) have been passed ex-parte due to
non-representation by assessee. It further emerged (i) that the AO has made
addition in assessment-order in absence of details by assessee; (ii) the
penalty u/s 271(1)(c) is linked with the outcome of assessment; and (iii) the
penalty u/s 271(1)(b) is also linked with compliances by assessee during
assessment-proceeding. Ld. AR for assessee submitted that considering
assessee’s advanced age and extremely difficult state of life, it would be most
appropriate to restore these matters back to AO for adjudication afresh in
accordance with law after considering assessee’s representation. He further
acknowledged that the assessee will co-operate the AO and ensure adequate
representation. Ld. DR for revenue fairly agreed to the proposal of Ld. AR. In
view of these submissions of parties and to afford substantial justice to
assessee, we are agreeable to the prayer made before us. Accordingly, we
remit all three matters to AO for consideration afresh after giving necessary
opportunities to assessee. Needless to mention that the AO shall take a
proper view in accordance with law after considering assessee’s
representation without being influenced by his previous orders. The
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Shri Pramod Kumar Singh, Bhopal ITA Nos. 300 to 302/Ind/2023 AYs. 2007-08
assessee is also directed to make adequate representation before AO failing
which the AO shall be at liberty to pass orders as thought fit.
Resultantly, all these appeals are allowed for statistical purposes.
Order pronounced in open court on 30.04.2024
Sd/- sd/- (VIJAY PAL RAO) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER
Indore िदनांक / Dated : 30.04.2024 CPU/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYAssistant Registrar Income Tax Appellate Tribunal Indore Bench, Indore
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