SANGAM TRADERS 60-GOLDEN AVENUE SAILI ROAD PATHANKOT,PATHANKOT vs. INCOME TAX OFFICER WARD 1 PATHANKOT SAILI ROAD PATHANKOT, PATHANKOT

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.