The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) remanded an Escapement of Income notice under section 148 of the Income Tax Act, 1961, due to an 1190-day delay in filing the appeal, citing medical reasons.
The assessee, involved in a contract of Rs. 10, 00, 000 or more with the Commodities Exchange, had not filed the return, as per information available to the Revenue. The Assessing Officer, noting a potential income escapement, issued a notice under Section 148 on 27.03.2018. Despite the absence of the assessee during the proceedings, the Assessing Officer added Rs. 1, 41,247 as short-term capital gain from share transactions and Rs. 6, 58,884 as income from undisclosed sources.
The counsel for the appellant Ritesh Shah explained that the significant delay of approximately 1211 days, including the COVID-19 period, in pursuing the matter was due to the assessee’s medical exigencies.
The counsel for the appellant emphasized that the CIT (Appeals) dismissed the appeal based on the delay, and during that period, the assessee was medically unfit to actively engage in the proceedings and coordinate with the representative. Supporting the claim, the cousel submitted the assessee’s affidavit and relevant details on merit.
The Single bench of the tribunal comprising Sujithra Kamble (Judicial member) observed that the assessee relocated to Halol in the Panchmahal District of Gujarat due to employment. During this period, the assessee faced challenges in coordinating with the tax consultant or professional regarding the appeal filed before the CIT (A). The delay in filing the appeal before the Tribunal, amounting to 1190 days, has been adequately explained due to the assessee’s medical reasons.
It is recommended to condone the delay before both the Tribunal and the CIT (A). This case is considered exceptional and should not set a precedent for other matters. The Tribunal remands a case to the CIT (A) for a thorough review of the appeal on its merits, with the expectation that the assessee will fully cooperate in the hearing before the CIT (A). The principle of natural justice, ensuring the assessee’s right to a fair hearing, should be followed, providing the assessee with due opportunity.
In result, the appeal of the assessee is partly allowed
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