In a recent ruling, the Kolkata bench of the Income Tax Appellate Tribunal ( ITAT ) directed CIT(A) to consider the case of the assessee by condoning the delay as the reason for delay has been satisfactorily explained.
In this case, the assessee, Daroga Family Foundation, which is a charitable trust, had filed its Income Tax Returns ( ITR ) on 02.11.2021 for the assessment year (AY) 2021-2022. Later on, the assessee received an order against the ITR filed under Section 143(1) of the Income Tax Act, 1961(ITA).
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A suo moto intimation was sent to the assessee stating that he did not file the reason for delay by Form-10B showing a net demand of Rs. 3,03,430/-. The total income has been shown under Section 154 of the Income Tax Act as Rs. 79,685/-. Aggrieved by the impugned oeder, the assessee approached the Commissioner of Income Tax (Appeals) [CIT(A)].
The CIT(A) rejected the application filed by the assessee seeking condonation of delay in filing Form-10B and held that there was no reasonable cause in the application filed. The assessee later on approached the ITAT for relief.
The counsel representing the assessee contended that the assessee had filed sufficient bona fide ground that, due to the COVID pandemic, the assessee faced difficulty in the electronic filing of various reports of audit. The counsel further submitted that as the delay was a bona fide one, the CIT(A) must condone the delay.
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The bench, comprising of Manish Borad (Accountant Member) and Pradip Kumar Choubey, (Judicial Member), held that as reasonable cause for the delay in filing has been satisfactorily explained by the assessee, and thus remanded the matter back to CIT(A) to consider condonation of delay.
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