ITAT Agra Judgments — October 2019

The Tribunal held that the CIT erred in rejecting the application without giving sufficient opportunity to the assessee. The CIT did not issue a show cause notice specifying the reasons for rejection. The matter was restored to the CIT for fresh consideration after affording sufficient opportunity.

The Tribunal held that the CIT erred in rejecting the application without giving sufficient opportunity to the assessee. The CIT did not issue a show cause notice specifying the reasons for rejection. The matter was restored to the CIT for fresh consideration after affording sufficient opportunity.

The Tribunal held that the cash payments were made due to business expediency and were covered by exceptions under Rule 6DD of the Income Tax Rules. It noted the lack of banking facilities in the area and the insistence on cash payments by agents and truck drivers, especially for night deliveries.

The Tribunal condoned the delay in filing the rectification application and remanded the matter back to the CIT(A) for fresh adjudication on merits. The CIT(A) was directed to decide whether the exempt income was wrongly included and if it should be excluded, whether any tax demand would still be payable.

The Tribunal held that the assessee failed to provide a reasonable cause for the significant delay in filing the audited accounts, which were due by September 30, 2008, but were filed only on March 25, 2011. The assessee's conduct did not demonstrate an intention to comply with the law.