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Facts
The assessee filed a return declaring Rs. 3,89,820, but the AO initiated reassessment proceedings under Section 147 due to cash deposits of Rs. 1.82 crores. The assessment was completed ex-parte at Rs. 1.82 crores. The CIT(A) dismissed the assessee's appeal in limine due to a 168-day delay in filing.
Held
The Tribunal held that the CIT(A) erred in dismissing the appeal without providing the assessee an opportunity to explain the delay. The matter was remanded back to the CIT(A) to consider the reasons for the delay and, if sufficient cause is shown, to admit and decide the appeal on its merits.
Key Issues
The key legal issue was whether the CIT(A) was justified in dismissing the appeal solely on the grounds of a 168-day delay without allowing the assessee to explain the reasons for such delay.
Sections Cited
Section 147, Section 144, Section 144B, Section 250, Section 249(3)
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 06.01.2025 passed u/s 250 of the Income Tax Act, 1961 which has emanated from the order of the AO, NFAC, Delhi passed u/s 147 r.w.s. 144 r.w.s. 144B of the Act, 1961 dated 30.03.2022. main grievance of the assessee is against the refusal of the ld. CIT(A) to admit the appeal for adjudication on merits on the grounds of delay in filing the same before the ld. first appellate authority by 168 days.
Brief facts emerging from the records are that the assessee has filed his regular return declared a total income of Rs.3,89,820/-. However, on information received by the AO regarding cash deposits of Rs.1.82 crores by the assessee in his bank account during the financial year 2014-15 (relevant to the assessment year under appeal), proceedings were initiated u/s 147 (after necessary approval from higher authorities) and in absence of any response from the assessee to various notices issued by the AO in course of assessment proceedings, the assessment was completed on a total income of Rs.1.82 crores.
The matter carried in appeal before the ld. first appellate authority has been dismissed in limine by the ld. CIT(A) refusing to admit the appeal for adjudication on merits on account of delay in filing the same by 168 days.
In course of hearing, before the Tribunal, the ld. AR of the assessee submitted that the ld. first appellate authority was not legally justified in refusing to admit the appeal for adjudication on merits on account of delay of 168 days when there are sufficient reasons for such delay and the ld. AO before rejecting the appeal should have incumbent on the part of the first appellate authority to have looked into the sufficient of reasons and in the instant case, the appeal has been rejected u/s 249(3) without allowing any opportunity to the assessee to explain the reasons for delay.
As such, he prayed for an opportunity of hearing before the ld. CIT(A).
The ld. DR relied on the order of the ld. CIT(A).
We have heard the rival submissions and considered the materials on record and we find that in the instant case, the appeal has been rejected without adjudicating the same on merits of the case by refusing to admit the same for delayed filing u/s 249(3) of the Act. We are of the opinion, that the ld. CIT(A) should have allowed an opportunity to the assessee to explain the reasons for the delay and in the interest of justice, we remand the matter back to the files of the ld. first appellate authority for allowing a reasonable opportunity to the assessee to explain the reasons for the delay of 168 (one hundred sixty eight) days and if sufficient causes are shown then the appeal needs to be admitted and shall be disposed of on merits of the case as per grounds contained in Form No. 35. open.
In the result, the appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court as on 22.01.2026