M/S B.S.ISPAT LIMITED ,NAGPUR vs. ASSISTANT COMISSIONER OF INCOME TAX CIRCLE- 1, NAGPUR

This appeal by the assessee against the order dated 19-12-2016 passed by the Commissioner of Income Tax (Appeals)-1, Nagpur [‘CIT(A)’] for assessment year 2012-13.

We find no representation on behalf of the assessee nor any application filed seeking adjournment. Thus, the assessee called absent and set ex-parte. Therefore, we proceed to dispose off the appeal by hearing the ld. DR and perusing the material available on record.

We find that this appeal was filed with a delay of 403 days. The assessee filed an application for condonation of delay along with notarized affidavit dated 13-03-2018 explaining the reasons for delay. On perusal of the same, we note that the appeal could not be filed in time for the reason of closure of the company due to heavy losses and frustration of the Directors of the company due to which the order could not be communicated to its counsel. We find no evidences were filed in showing that the assessee is into losses and the Directors were in financial crisis due to which the delay caused in filing the appeal in time. The CIT(A) passed impugned order on 19-12-2016 and the assessee required to file appeal within 60 days from the date of receipt of such order. There was no statement regarding the receipt of order in the application as well as is notarized affidavit. We find the assessee has to show reasonable cause which prevented the assessee in filing the appeals in time and we find no such explanation in the application as well as notarized affidavit except making a statement that due to frustration of Directors as the company gave into losses. It is pertinent to note that the assessee is required to explain the reasons on day to day basis and as discussed above, no such reasons were found in application as well as notarized affidavit. Therefore, the reasons stated by the assessee not acceptable and the application seeking condonation of delay of 403 days is rejected.

In view of our decision in dismissing the application for condonation of delay in limine, the grounds raised by the assessee challenging the action of CIT(A) become infructuous and dismissed as such.

In the result, the appeal of assessee is dismissed.