The Ahmedabad Bench of Income Tax Appellate Tribunal(ITAT) condones the delay in filing the appeal before the Commissioner of Income Tax (Appeals)[CIT(A)] due to the assessee’s ignorance of legal procedures and lack of follow-up in the assessment proceedings.
Amarabhai Ramjibhai Patel,the appellant-assessee,filed his return of income on 24.03.2018, declaring Rs. 82,870 from milk sales. After processing the return under Section 143(1), the Assessing Officer issued a notice under Section 143(2) on 09.08.2018 and several notices under Section 142(1), but the assessee failed to provide the requested details.
As a result, the Assessing Officer passed an Assessment Order under Section 144, making additions of Rs. 1,79,395 for undisclosed net profit, Rs. 31,10,750 for cash deposits, and Rs. 5,20,170 for unexplained agricultural income.Dissatisfied with the Assessment Order, the assessee filed an appeal before the CIT(A), which was dismissed.
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The Authoritative Representative(AR) of the assessee had argued that the agriculturist assessee was unaware of the assessment proceedings and could not represent his case or follow up with the CIT(A). The CIT(A) dismissed the appeal for a 725-day delay, citing the assessee’s lack of legal knowledge. The AR requested to condone the delay, admit the additional evidences, and remand the matter to the CIT(A) for proper adjudication.
The tribunal heard both parties and reviewed all relevant material on record. The assessee explained the delay in filing the belated appeal before the CIT(A) as due to ignorance and lack of follow-up regarding the assessment and appellate proceedings.During the hearing, the AR requested more time to gather evidence regarding the additions and submitted additional evidences before the tribunal.
The bench condoned the delay in filing the appeal, allowed the application for additional evidences, and remanded the matter to the CIT(A) for proper adjudication. It emphasized that the assessee should be given a fair hearing and warned that non-cooperation could lead the CIT(A) to decide based solely on the submitted additional evidences.
Get a Copy ofLaw and Procedure for Filing of Appeals, Click here
A single member bench Suchitra Kamble(Judicial Member)partly allowed the appeal of the assessee.
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