The Income Tax Appellate Tribunal ( ITAT ), condoned a delay of 224 days on the ground that there was no intimation from the Counsel of the assessee regarding the ex parte order.
The assessee, Surender filed returned declared income of Rs. 7,10,360, and the case of the assessee was selected for scrutiny, and notices have been issued as required. The assessment proceedings have been initiated against the assessee; an assessment order came to be passed on 14/12/2016 against the assessee by making an addition of Rs. 99,24,760 by treating the same from undisclosed sources on the ground that the assessee has failed to explain the nature and source of cash deposited to the bank accounts of the assessee.
As against the assessment order, the assessee has preferred an appeal before the CIT(A). The CIT(A) dismissed the appeal filed by the assessee on the ground of delay in latches.
The assessee has suffered an assessment order dated 14/12/2016, but the assessee has challenged the same before the CIT(A) with a delay of 224 days. It is the case of the assessee before the CIT(A) for condoning the delay “that the assessee was under the impression that his previous counsel is well presenting the case before the Ld. Income Tax Officer. The Counsel never told the assessee that the case was decided ex-parte. Whenever the assessee asked about the demand raised by the Department, his counsel told him he will get it waived from the Department. Since no result was obtained by the previous counsel, the assessee contacted the new counsel who approached the authority, applied for the certified copy, and received the same on 31/08/2017. Immediately filed the Appeal before the CIT(A).”
The Bench consisting of Shamim Yahya, Accountant Member, and Yogesh Kumar US, Judicial Member observed that “The CIT(A) has dismissed the Appeal not being convinced with the reasons assigned by the assessee for condoning the delay. We are of the considered opinion that the CIT (A) ought to have applied a liberal view in condoning the delay for the reasons stated by the assessee for condoning the delay and should have decided the matter on merit.”
“Therefore, in the interest of justice, we deem it fit to condone the delay of 224 days in filing the Appeal before the CIT (A). Accordingly, we condone the delay of 224 days delay in filing the Appeal before the CIT(A) and direct the CIT(A) to decide the Appeal filed by the assessee on merits in accordance with the law.”
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