KAKATIYA UNIVERSITY WARANGAL,TELANGANA vs. DCIT., EXEMPTION CIRCLE-1(1), HYDERABAD

The brief facts in this case are that the assessee filed its Return of Income for the Assessment Year 2021-22 on 31.03.2022 admitting NIL income. Notices u/s.143(2) and 142(1) of the Income Tax Act, 1961 (“the Act”) were issued. After considering the reply of assessee, the Assessing Officer (“Ld. AO") passed an order u/s.143(3) of the Act making an addition of Rs.23,93,22,374/- to the income of the assessee as unexplained income.

Feeling aggrieved with the order of the Ld. AO, the assessee filed appeal before the Ld. CIT(A). There was delay of 37 days in filing the appeal before the Ld. CIT(A). The Ld. CIT(A) without condoning the delay in filing the appeal, dismissed the appeal of the assessee.

Feeling aggrieved with the order of Ld. CIT(A), the assessee is now in appeal before us, contending that the Ld.CIT(A) erred in not condoning the delay in filing the appeal and dismissed the appeal without appreciating the merits of the case. The Ld. AR submitted that the appeal before Ld. CIT(A) could not be filed in time due to the reason that the assessee noticed the order of Ld. AO in the income tax portal belatedly, due to change of the office of Registrar and Vice Chancellor of the University. The same reasons were also brought to the notice of the Ld. CIT(A). However, without considering the reasons given for delay, the Ld. CIT(A) did not condone the delay. Hence the Ld.AR requested before the Bench to condone the delay in filing the appeal before the Ld. CIT(A) and to issue a direction to the Ld. CIT(A) to decide the appeal on merits.

Per contra, the Ld. DR placed heavy reliance on the order of the authorities below and opposed the grant of further opportunity to the assessee.

We have heard the rival submissions and also gone through the records in the light of the submissions made on either side. The Ld. AR submitted that the appeals before Ld.CIT(A) could not be filed in time due to the reason that the assessee noticed the order of Ld. AO in the income tax portal belatedly, due to change of the office of Registrar and Vice Chancellor of the University. Considering the reasons submitted by the assessee, we are of the considered view that there was reasonable cause for the assessee to file the appeal with delay before Ld. CIT(A). Further considering the principle of natural justice, the highest that would happen by allowing an opportunity to the assessee is that a cause would be decided on merits. With this view of the matter, we are of the view that fresh opportunity could be given to the assessee. Accordingly, we condone the delay, set aside the impugned order and restore the issue to the file of Ld. CIT(A) to pass a fresh order on merits. Needless to say that the Ld. CIT(A) will afford an opportunity of hearing to the assessee before passing such order. The grounds of appeals are answered accordingly.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 21st June, 2024.