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Facts
The assessee, engaged in the liquor business, filed a return declaring Rs. 2,05,410, which was selected for scrutiny. Due to non-response, the AO completed an ex-parte assessment, adding Rs. 10.76 crores. The CIT(A) dismissed the assessee's appeal in limine due to a 209-day delay in filing, without providing an opportunity to explain the delay.
Held
The Tribunal held that the CIT(A) was not justified in dismissing the appeal without allowing the assessee an opportunity to explain the delay. Citing medical reasons for the delay, the Tribunal remanded the case back to the CIT(A) to consider the condonation of delay and then adjudicate the appeal on merits.
Key Issues
The key legal issue was whether the CIT(A) erred in dismissing an appeal solely on grounds of delay without providing the assessee an opportunity to explain the reasons for the delay, especially when medical grounds were cited.
Sections Cited
Section 144, Section 144B, Section 250, Section 249(3), Section 68, Section 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. MANOJ KUMAR AGGARWAL & SH. UDAYAN DASGUPTA
This appeal is filed by the assessee against the order of the ld. CIT (A) NFAC, Delhi dated 28.11.2024 passed u/s 250 of the Income Tax Act, 1961 which has emanated from the order of the AO, (Assessment Unit) passed u/s 144 r.w.s. 144B of the Act, 1961 dated 20.09.2022. the addition of Rs. 10.76 crores u/s 144 of the Act and sustained and in first appeal, the main grievance of the assessee is that the ld. first appellate authority has dismissed the appeal without admitting the same for adjudication on merits of the case, on the grounds that the appeal has been filed belatedly by 209 days and dismissing the same in limine without allowing any opportunity to explain the delay before rejection.
Brief facts emerging from the records are that the assessee is engaged in liquor business and has declared total income of Rs.2,05,410/- in regular return which is selected for scrutiny under CASS. In course of scrutiny assessment proceedings, in absence of any response from the assessee to various notices issued by the AO the assessment has been completed ex-parte on a total income of Rs.10.78 crores (with additions on various issues including disallowance of direct and indirect expenses, and addition u/s 68 and 69A, on account of unsecured loans, unexplained cash deposits and capital introduction, etc.).
The matter carried in appeal before the ld. first appellate authority has been dismissed by the ld. CIT(A) without admitting the appeal for adjudication on merits due to the reasons that the appeal has been belatedly filed by 209 (two hundred nine) days. The reasons stated by the assessee in Form No. 35 for delayed filing of the appeal appeal has been dismissed as per provisions of section 249(3) of the Act.
Before the Tribunal, the ld. AR of the assessee submitted that it was incumbent on the part of the ld. first appellate authority to provide an opportunity of hearing to the assessee to explain the reasons for the delay before refusing to admit the appeal, which has not been done in this case. He further submitted that the appellate authority should have examined whether sufficient cause exists or has been shown by the party for condoning the delay because the context of condonation of delay should be given a liberal interpretation so as to render substantial justice. He further submitted that the asssessee met with an accident on 7th Aug., 2022 and was advised complete bed rest for a period of three months, (in support of which he has furnished documentary evidences of Sukh Sadan Hospital & Traumsa Centre Pvt. Ltd., Dalhousi Road, Pathankot along with other medical documents).
He submitted that the ld. CIT(A) before refusing to admit the appeal for delay in filing the same should have allowed an opportunity of hearing to the assessee to explain the reasons for the delay and since the assessee was prevented by sufficient cause on medical grounds in filing the appeal, the delay of 209 (two hundred nine) days in filing the appeal should be condoned and the appeal should be admitted for hearing on merits. medical certificates produced, he has no objection if the matter is remanded back to the ld. first appellate authority for adjudication on merits.
We have heard the rival submissions and considered the materials on record and we find that the ld. first appellate authority was not legally justified in refusing to admit the appeal for adjudication on merits without giving an opportunity to the assessee to explain the reasons for the delay and to prove his case with supporting documentary evidences.
As such, in the interest of justice, we remand the matter back to the files of the ld. first appellate authority to allow the assessee an opportunity to explain the reasons for the delay in filing the appeal and if sufficient cause is shown to exist, the appeal may be admitted and adjudicated upon on the grounds contained in Form No. 35, on merits of the case.
We also direct the assessee to file the necessary documentary evidences and submissions explaining the delay and to fully cooperate in the appellate proceedings.
We have not expressed any opinion on merits of the case and all issues are left open.
Order pronounced in the open court as on 22.01.2026